Everything You Need To Know About Credit Review
The process in which the credit profile of an individual is periodically assessed is referred to as credit review. Credit review is carried out by settlement companies, creditors or credit counselors. Each entity carries out credit review for various purposes.
Creditors conduct credit reviews on the account of the borrower to make sure that they are meeting the standards of the credit products. The credit limit of a borrower is determined by their payment history. For the purposes of advice regarding settlement of credit, latest credit products and consolidation of credit, credit counselors conduct credit review of their client. Settlement companies on the other, carry out credit review of their clients in order to establish areas where there is debt settlement potential.
Credit review has many advantages. One of the merits of credit review is that it will assist in the monitoring of credit review. The estimation of a credit limit can only be done via credit review. It is only lenders who can determine the credit limit of a person. In the event one is in need of capital for business expansion, an increase in credit limit will guarantee this. The other benefit of a credit review is that it will enable one to establish sources of errors and even correct them.
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. Calculation errors can be identified and amended early enough thus saving the business money. Another merit of credit review is that it helps identify fraud cases. A credit review will help you identify whether there are accounts, not registered under you that have been added under your name or whether some transactions which are not authorized have happened. In the event a fake account is not identified soon enough, one is made to pay all the debts and therefore this makes credit review crucial.
Faults made by creditors can be identified through conducting of a credit review. Creditors may send wrong data about you to credit bureaus and therefore a credit review will help you identify this and correct it. Potential areas for debt settlement can be identified and help one especially when they are bankrupt and this is made possible by credit review. It is also only through credit review by the credit lawyer that one can file for bankruptcy. It is possible for the debt of a distressed borrower to be pardoned with the help of a credit attorney in a court.
Credit review is therefore important for any individual or a business as well. In order to avoid future threats and faults, a yearly credit review is advisable.