Reviewing the credit profile of a person periodically is what credit review is about. There are many entities that may perform credit reviews such as creditors, settlement companies or credit counselors. In general, credit reviews are executed by entities that are providing borrowers with credit services or the creditors themselves. As a matter of fact, the information used in credit review is based mostly on soft inquiry which is not affecting the credit score of borrower.
Creditor reviews – creditors can be seen performing regular reviews on the borrower’s account; this is to ensure that they keep on meeting the credit product’s requirements. The review might be otherwise called as account review or account monitoring inquiries. Generally, if the lender has performed an account review, the information will be obtained from the soft credit inquiry.
The creditors typically request that the borrower provide updated personal details along with the credit review. In such case, lenders will be providing the borrower with credit increase upon the completion of the credit review. There are many lenders who review the borrower’s account every 6 months to a year to offer them with increase of credit limit. In credit limit increase review, the lender normally requires outstanding payment history. With this in mind, a lot of lenders are rewarding borrowers on a regular basis that have flawless payment history by upping their credit limit.
Credit counseling services – borrowers have several options when talking about credit counseling services. But you should know that these choices will slightly vary depending on the applicant’s situation and oftentimes, will require credit review to give the best credit advice. The good thing about these credit counseling entities is that, they are generous in giving advise to borrowers of new credit products, credit settlement and credit consolidation. Both personal credit lawyers and settlement companies are accessible at all times and willingly give their support to applicants in negotiating for debt settlement.
In settling debts, a big number of distressed borrowers may actually decide to work with profit settlement company or credit attorney. Both entities need full credit review of complete credit profile of borrower to provide the best possible service.
Settlement companies are going to review all of the open accounts of borrowers in credit review in order to identify 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 having to pay for their debt every month, settlement companies are requiring borrowers to have reduced monthly payment to escrow account and this begins to accumulate as time pass. For distressed borrowers, they can choose to hire a credit lawyer if they’ve opted to file a bankruptcy.