Manual Line Review
Manual Line Review refers to a process where a lender or credit card issuer evaluates a credit account holder’s request for a credit limit increase or decrease by having a human underwriter review the account details, rather than relying solely on automated systems. This is evaluated within Credit Limit Adjustments.
Plain-Language Meaning
A manual line review is when a real person at a financial institution examines your credit account and financial information to decide whether to change your credit limit, instead of letting a computer make the decision automatically.
Practical Example
If you request a higher credit limit on your credit card and the issuer needs more information, you might be told that your account will undergo a manual line review, where a credit analyst looks at your income, payment history, and credit report before making a decision.
What It Does Not Mean
This does not refer to automated credit limit adjustments, where computer algorithms instantly approve or deny changes without human involvement.
How the System Uses It
The system uses manual line reviews when automated criteria are not sufficient to make a decision about a credit limit adjustment. This reflects a more detailed and personalized evaluation, often triggered by complex financial situations, large requested changes, or discrepancies in the information provided.
Common Misconceptions
- “Manual line reviews always guarantee a credit limit increase.” A manual review does not guarantee approval; it simply means a human will assess the request.
- “Manual line reviews are only for people with bad credit.” These reviews can occur for any account holder, regardless of credit standing, especially for significant limit changes.
- “Manual line reviews are faster than automated reviews.” Manual reviews typically take longer because they require human evaluation.
Related Pages
Related Glossary Terms
FAQ
- What information is considered during a manual line review? A manual line review typically considers your income, employment status, credit report, payment history, and sometimes additional documentation to assess your ability to handle a new credit limit.
- Can a manual line review result in a credit limit decrease? Yes, a manual line review can lead to a credit limit decrease if the review finds increased risk or negative changes in your financial situation.