Reviewing the credit profile of a person periodically is what credit review is about. Credit reviews may be performed by credit counselors, creditors or settlement companies. In general, credit reviews are executed by entities that are providing borrowers with credit services or the creditors themselves. The information that is used in credit review is typically based on soft inquiry which doesn’t affect the credit score of the borrower.
Creditor reviews – creditors might do regular credit reviews on borrower’s account to guarantee that they will keep on meeting the standards of credit product. As for this review, it can be referred as account review or account monitoring inquiries. Say that the lender has carried out account review, then the information is received from soft credit inquiry.
In most cases, borrowers are requested to present updated personal details as well as credit review. After completing the credit review, the lenders will now provide borrowers an increase to their credit limit. There are numerous lenders who are reviewing the account of the borrower every 6 months to 1 year to offer an increase of their credit limit. When it comes to credit increase review, you can see lenders to be demanding an outstanding payment history. Therefore, most lenders are regularly rewarding borrowers with remarkable account payment history by means of boosting their credit limit.
Credit counseling services – borrowers have several options when talking about credit counseling services. These said options vary depending on the situation of the borrower and typically, requiring credit review in order to give the best credit advice. These credit counseling entities are available to advise any borrowers of the new credit products, credit settlement and credit consolidation. The settlement companies as well as personal credit lawyers are easily accessible to support borrowers in negotiating for debt settlement.
Many of the distressed borrowers might opt to work with a profit settlement company or credit attorney as a way to settle their debts. To provide the best possible service, both entities need full credit review of the borrower’s complete profile.
Settlement companies will be reviewing all open accounts of borrowers in credit review to be able to identify the potential for debt settlement. What settlement companies do is work with their borrowers issues and then, ask the borrowers to stop their debt payments to give them leverage to negotiate. Instead of paying monthly debt, settlement companies need borrowers to make reduced payment every month to escrow account which starts to accumulate overtime for negotiated settlement payoff. Distressed borrowers may opt to work with credit lawyer if they have opted to file bankruptcy.