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Learn About Credit Review

Credit review is the process of periodically assessing the credit profile of an individual. Credit review is carried out by settlement companies, creditors or credit counselors. There are various reasons as to why credit review is carried out.

To ensure that borrowers are meeting the standards of the credit products, creditors carry out credit review on their borrowers. 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. In order to identify areas where settlement of debts is possible, settlement companies conduct credit review.

Credit review has many advantages. Monitoring of the credit score is one of the benefits of credit review. A credit review enables one to establish the likelihood of their credit limit. It is only lenders who can determine the credit limit of a person. An increase in credit limit will enable one to borrow more in case they need say capital to expand their businesses. 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. 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. 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.

Since creditors can also make errors, a credit review will help you identify these errors. Data sent to bureaus by creditors about you or your business may be incorrect and hence identifying and correcting this is crucial. A credit review will also help you identify possible areas for debt settlement especially when one is bankrupt. A credit attorney can help one file for bankruptcy only after they have conducted credit review. Credit review will help a credit lawyer identify and provide a proof of how bankrupt they are in a court and this may lead to them being pardoned or being laid off some debts.

Credit review is therefore important for any individual or a business as well. It is advisable to have a credit review conducted every year so as to identify future threat and errors and to correct them.

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