topic What is the purpose of the "periodic review of your credit history by one of your creditors."? in General Credit Topics

What is the purpose of the "periodic review of your credit history by one of your creditors."?

soliloquy — Mon, 01 Aug 2011 21:06:42 GMT

I can understand it for credit card companies - if they are considering a credit line increase or perhaps considering cutting your credit line. I have two car loans, one mortgage, several credit cards and no negatives on my credit report. I am about 8 months from paying off one of my car loans. They haven't pulled my report at all ever...except they just did this July. For what? It's not like they can change my interest rate.

And Discovery pulls my credit like once per month. It's like they are stalking me.

06/30/11, 05/05/11, 04/29/11, 04/22/11, 04/15/11, 04/07/11, 04/04/11, 03/24/11, 03/21/11, 03/14/11, 01/28/11, 01/07/11, 12/27/10, 12/17/10, 12/10/10, 12/06/10, 11/24/10, 11/22/10, 11/16/10, 10/05/10

Re: What is the purpose of the "periodic review of your credit history by one of your creditors

GregB — Tue, 02 Aug 2011 01:47:06 GMT

Best guess on the car loan is that they are considering sending something to you to try to get your next car loan from them. This is even more likely to be correct if the loan was for a new car and financed through the manufacturers loan program such as a new Honda with a loan from Honda, etc.

Discover is just trying to be careful. Is it a fairly new loan? I see the most from Amex. They are finally down to 1-2 softs per year on a CC that will soon be 30 years old.

invoRe: What is the purpose of the "periodic review of your credit history by one of your creditors

RobertEG — Tue, 02 Aug 2011 02:38:20 GMT

Maybe they are involved in an accounting review, such as to determine what accounts might be charged-off, or maybe they are preparing a portfolio of accounts for sale. There could be numerous internal reasons unrelated to actions by you that might trigger their own internal review.

Re: What is the purpose of the "periodic review of your credit history by one of your creditors

AndySoCal — Wed, 03 Aug 2011 01:54:12 GMT

Banks will peroidically do account reviews. How often they do account reviews is up to the lender. In the cardholder agreements on credit card there is verbiage like this related to defaulting on the account. The verbiage is from one my cardholder agreements that I recieved recently

You will be in default if You fail comply with this or other agreemenst with us or one of our related banks.

The verbaiage is not unique to a bank or lender they all have similiar statements. This a reason they do account reviews.