What are Credit Reviews?

Credit review is the periodic evaluation of a person’s credit profile. These credit reviews could be performed by credit counselors, settlement companies or creditors. 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 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. 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 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. For this reason, most lenders reward borrowers who have beautiful payment history by way of boosting their credit limit.

Credit counseling services – borrowers have got multiple options when it comes to credit counseling services. These options varies on the applicant’s situation and most of the time, will require credit review to be able to give the best credit advice. Credit counseling entities are available to give sound advice on any 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.

Many of the distressed borrowers might opt to work with a profit settlement company or credit attorney as a way to settle their debts. 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. Settlement companies usually work with borrowers with different delinquencies and requesting borrowers to stop payments on their debt only to give the more negotiating power. Rather than paying the monthly debt, settlement companies require borrowers to make reduced monthly payment to escrow account which begins 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.

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