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. There are various reasons as to why credit review is carried out.
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. Depending on the payment history of the borrower, lenders will provide a credit limit. The reason as to why credit counselors take credit reviews of their clients is to guide them and educate them about 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. Through a credit review one is able to establish whether their credit limit is likely to increase or not. 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. A credit review will also help one to identify and correct any errors.
In order to correct calculation errors that may cause say a business to payback more money than is necessary, a credit review will help identify and amend them. Calculation errors can be identified and amended early enough thus saving the business money. Protection against identity theft is another advantage of credit review. 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. Credit review enables early realization of fake accounts thus helping one avoid liability to debts they had not borrowed.
Since creditors can also make errors, a credit review will help you identify these errors. 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. 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.
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.