What Can Be Included in Your Credit Bureau File?

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Credit bureaus are agencies that continue credit reports on file for every consumer with a federally-issued social security number (SSN). A credit written report file contains data almost an individual's financial debt, including account numbers for current and by debts, loan types and terms and payment history. If an individual defaults on loan payments, the creditor may opt to send a study of the late payment(s) to the credit bureaus and then that it will be reflected in the consumer's credit file. If you are a small business with few debtors, you will have to utilise a middleman and pay a fee to report to the credit bureaus. Otherwise, you may bring together the credit reporting bureaus and report direct to them.

1. 1

   Research the three credit bureau agencies. In the U.South., there are three national credit bureaus, Equifax, Experian, and TransUnion. These bureaus collect, update, and store credit histories on nigh U.S. consumers. When a consumer applies for a loan to buy a car or house, for example, the bank will contact these credit bureaus to find out your credit history and FICO credit score.^[1]

   • A credit score ranging from 300 – 850 is assigned to each consumer based on the number of late payments, the amount of outstanding debt, or whether the person ever filed for defalcation or defaulted on a loan.

2. 2

   Employ credit reporting to collect bad debts. Almost people practice not want a negative report on their credit history. If you lot are trying to collect money from someone and they oasis't paid, give them a last due date. Then tell them you will be reporting the not-payment to the three credit bureaus if the coin is not paid past that date.

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3. iii

   Negotiate with removal of a bad credit entry. Another tactic to endeavour in collecting payment is to report the bad debt to the credit agencies, and then offer to remove it if the debt is paid inside a specific fourth dimension period. Exist sure that the debt is reported to all three bureaus, every bit an unreported debt will not show upwardly on a bureau'due south credit report if that credit bureau does non have a record of it.^[2]

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1. one

   Hire a drove agency. This is one of your options if you are non a large lender, but rather a small-book creditor with only a few unpaid debts from customers. Collection agencies attempt to collect the debt owed to you. If they cannot collect, they written report the default business relationship to the iii credit bureaus in their name. Therefore, using a collection agency is an indirect way of reporting to the credit bureau agencies.^[three]

2. 2

   Choose a collection agency carefully. Exercise a search for collection agencies in the phonebook or online. Shop around for the best price. Collection agencies will charge yous a small fee or a committee on the amount they collect.

   • Verify that the collection agency yous choose is a member of all 3 credit reporting bureaus.
   • Collection agencies typically offer a discount for payment that may be substantial (50% or more).
   • Exist enlightened that you may be liable to the consumer if the collector violates the federal and state laws regulating the collection of a debt.

3. 3

   Rent a credit reporting service company. Credit reporting services volition to do the reporting for you. Not simply volition these companies help you lot found accounts with the iii credit bureau agencies, if applicable, only they besides provide other services as well.^[4]

   • They provide assistance with formatting your information properly for submission to the credit bureaus.
   • They list your debtor's bad debt on your behalf.

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1. 1

   Bring together the credit bureaus. Being a member of all iii credit bureaus allows you to report straight to them, without paying a middleman. In order to be accepted every bit a fellow member of ane of the three (or all three) national credit bureau agencies, yous must accept a sure number of customer payment histories and a specified minimum number of open accounts with debtors. This could be as many as 500. Otherwise, you volition have to choose i of the methods listed elsewhere in this commodity.^[5]

2. 2

   Telephone call the credit bureau and ask for their qualification requirements. If you lot qualify, inquire them to ship you an application. Submit your application and wait for an approval.

3. 3

   Pay the fees and service charges. You will now exist able to submit reports direct to a credit agency. Keep in mind that the costs you incur through the credit bureaus will amount to less than those charged by collection agencies and credit reporting agencies.

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Add New Question

• Question

  Does the credit bureau legally have to remove a disabled person's debt?

  

  Michael R. Lewis is a retired corporate executive, entrepreneur, and investment advisor in Texas. He has over 40 years of experience in concern and finance, including every bit a Vice President for Blue Cross Blueish Shield of Texas. He has a BBA in Industrial Management from the University of Texas at Austin.

  

  Business Advisor

  Skilful Respond

  A person's disability does not bear upon their credit study or rating. If disability is the crusade fiscal stress, delinquencies, or late payments, the consumer should contact his creditors and the credit bureaus and add together an caption of his circumstances to the credit written report.

• Question

  How can I report payments on a land contract for a firm?

  

  Michael R. Lewis is a retired corporate executive, entrepreneur, and investment advisor in Texas. He has over 40 years of feel in business and finance, including as a Vice President for Blueish Cross Blue Shield of Texas. He has a BBA in Industrial Management from the Academy of Texas at Austin.

  

  Business Advisor

  Expert Respond

  Only members of the four credit reporting bureaus — Equinox, Experian, TransUnion, Innovia — can report credit transactions to the agency. Members are business organizations that provide credit to their customers. Credit results between ii private individuals are commonly non reported unless legal activity results.

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• Ask your accountant for a proficient collection agency referral. Accountants oftentimes network with business organization and real estate attorneys, who sometimes act every bit collection agents.

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