All About Credit Review
The periodic assessment of the credit profile of a given person is called credit review. It can be carried out by credit counselors, creditors or settlement companies. All these entities conduct credit review for different reasons.
The reason as to why credit reviews are conducted by creditors is to establish whether they are doing things according to the standards of credit products. The credit limit of a borrower is determined by their payment history. Credit counselors conduct credit reviews for the purpose of advising their clients on settlement of credit, latest credit products and consolidation of credit. It is for the purpose of identifying possible settlement for debts that settlement companies carry out credit review.
There are various benefits of credit reviews. One of the merits of credit review is that it will assist in the monitoring of credit review. A credit review enables one to establish the likelihood of their credit limit. Lenders are the one who mostly determine the credit limit of a person. A credit review will help one open their opportunities to acquire more credit if their credit limit is increased and this will help them boost or expand their businesses. A credit review will also help one to identify and correct any errors.
There may be calculation errors or errors in terms of amount of loan to be paid back to a creditor and therefore the conducting of a credit review will help avoid this. This is likely to save a business a lot of money since they are able to correct the errors in advance. The other benefit is that credit review will help protect one against fraud cases. It is only with the help of a credit review that one can establish whether there are unauthorized transactions taking place or whether there exist fake accounts created under their names. Credit review enables early realization of fake accounts thus helping one avoid liability to debts they had not borrowed.
Faults made by creditors can be identified through conducting of a credit review. Data sent to bureaus by creditors about you or your business may be incorrect and hence identifying and correcting this is crucial. In the event of bankruptcy, a credit review conducted by settlement companies will help you identify potential debt settlement areas. A credit attorney can help one file for bankruptcy only after they have conducted credit review. It is possible for the debt of a distressed borrower to be pardoned with the help of a credit attorney in a court.
It is advisable to make sure a credit review is done for you or your business since it very essential. In order to avoid future threats and faults, a yearly credit review is advisable.