Do you have an idea what credit review is? Well this is the review that is done on those who have credit. Such kind of review can be done by a creditor, a settlement company or a credit counselor. Click here for more info.
So why is this kind of review done? Well this is to assess if the person who has credit can still make payment for it. There are many reasons why people will have credit. The most common reason for people who have credit is because they shopped for something. Many people get credit from the credit cards that they have. You see when you have a credit card it becomes so easy for you to get things on credit. That is why when there is a sale there is a large percentage of people who get credit in order to shop for the things that they want during sale season.
Now another common reason why credit reviews are done is to find out if the person is eligible for credit limit increase. Credit limit refers to the maximum amount of that you can get as credit. For example if your credit limit is ten thousand dollars, this means that you can get ten thousand dollars as credit. If one passes the credit review the person will be given a credit limit increase.
Now typically the credit review is done through a soft inquiry. This means that a person is asked over the phone or in person questions and the answer will reveal if the person can sustain paying for his credit. Now the great thing here is that whatever is found out in the credit review this does not have any bearing on one's credit score.
If a person is making use of a credit counselor then a credit review will be one of the first steps in credit counselling that the person undergoes. This is because the results of the credit review will reveal where the problems lie. If the problems are identified then the solutions can be thought out for it.
Now how often are credit reviews done? Well they are typically done twice a year or during every six months. In this case the creditor will phone or schedule a meeting with the one who has credit with them and ask them questions that cover the credit review. If a person has applied for debt settlement then it is the settlement company who will conduct the credit review.
Gather more facts by clicking here: https://www.britannica.com/topic/credit-score