Basic Understanding of Credit Review
Credit review basically refers to the periodic assessment of a person’s credit profile. Among the parties that may be interested in credit reviews include credit counselors, settlement companies, as well as creditors. In simple terms, any institution offering credit or assists people with credit issues would need to keep abreast with credit reviews. One would only need to know that credit reviews tend to involve soft inquiry and tends to make sure that it does not affect the borrower’s credit score. Among the reasons the creditors tend to perform regular credit reviews is to make sure that they have borrowers meet the credit product’s standards. The reviews also tend to be referred to as the account reviews inquiries and may also be referred to as account monitoring. A lender tends to do an account review or an account review inquiry with the intention of obtaining the information from a soft credit inquiry.
Credit review also demand the borrower to keep updating his or her personal information for him or her to increase credit index. As a result of updating their personal information and meeting the payment requirements, their credit range tends to increase. Most lenders will check for the credit review after one year while others will check after every six months. It tends to be necessary for one to make sure that he or she has an excellent payment history for him or her to have a better credit index. One would need to have a great payment history for him or her to experience an increase in credit over time.
It may be essential to know that there are credit counselors especially before borrowing. One would need to know that these services tend to vary depending on the borrowers situations and the counselor would need to check one’s credit review to offer the best advice. In a case where a borrower has no way of paying a debt to the creditor, he or she would need to know that there are companies and individuals who would be of great help to him or her. It would be essential for a distressed to know that there are for-profit individuals and entities that would offer him or her assistance where he or she has a problem settling his or her debt.
The settlement company would need to view the borrower’s open account in the credit review with the intention of checking the potential of the borrower’s ability to settle the debt in question. The company or the lawyer tends to make sure that the borrower makes reduced monthly payment with the intention of making the account accumulate with time with the intention of increasing negotiated settlement payoff.