Credit review is the evaluation of a person’s credit profile periodically. Credit reviews may be performed by credit counselors, creditors or settlement companies. Well generally speaking, credit reviews are done by entities that provide borrowers with credit services or 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 may do regular credit reviews on the account of borrower to make sure that they keep meeting the standards of the 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.
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 numerous lenders who are reviewing the account of the borrower every 6 months to 1 year to offer an increase of their credit limit. In credit limit increase review, lenders usually require 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 – in relation to credit counseling services, there are many options that borrowers can have actually. These said options vary depending on the situation of the borrower and typically, requiring credit review in order 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.
A lot of distressed borrowers can choose to work with profit settlement company or credit attorney to be able to settle their debts. Both entities are requiring full credit review of the complete credit profile of the borrower to be able to provide the best possible service.
Settlement companies will be reviewing all open accounts of borrowers in credit review to be able to identify the potential for debt settlement. Settlement companies normally work with the borrowers with various delinquencies as well as request that borrowers stop payments onto their debt just to give them more negotiating power. 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. For distressed borrowers, they can choose to hire a credit lawyer if they’ve opted to file a bankruptcy.