What Happens After a Debt Review Gets Completed?
If you’ve passed your debt review with flying colors, then you probably feel like celebrating, right? If you’re not sure what it means, it indicates something positive, or rather increases the possibility for you to buy either a car, a house or take out that student loan you need to either settle your debt or cover an existing loan you’re struggling to pay.
Once your debt counseling process is completed, it’s very important to ensure precisely what you’re allowed to do and what not.
The one thing you should be aware of during this time is that you’re not allowed to take out additional credit while your debt is being reviewed.
When somebody signs up for debt counseling, you will also be listed with all relevant credit bureaus, which might seem unsettling to most people, but it’s merely done to keep credit bureaus informed about your financial situation. Any update that proves you are trying to get out of debt, or want to take on more debt, keeps them notified.
As soon as your debt review is over, however, they stop monitoring your activity. When you are placed under debt review, credit bureaus usually flag clients’ profiles as being under debt review.
It is only done to prevent clients from taking on more credit, which at the time they cannot afford. The entire debt review process is thus also implemented for rehabilitation purposes.
Your Debt Review Has Been Completed, Now What?
The big question on your mind must be whether you’re allowed to purchase a house, a car, or anything else that is labeled very expensive, and since a completed debt review means that you are no longer indebted, you will be able to use your accounts once again.
With a debt review title being removed from your name, it might seem hard for some individuals to obtain credit instantly after that, but it is possible with certain financial institutions.
If your debt review is complete, you’ll also be labeled as an active credit user, which allows you to have some freedom over your credit at least once again. Not all credit providers treat debt review equally, however. Some individuals might still have to decide whether you’re eligible to qualify for certain loans, or not.
Learn more of what is debt review?
Get debt counselling and debt review help from Credit Matters. Contact us today! 086 111 6197