While each bureau has their own set of requirements for credit reporting, the process for being approved is very much the same.
First, you must become a Data Furnisher which requires going through a verification process known as Credentialing. Generally the credentialing process includes the following items:
- Filling out a membership application with the bureau
- Having an On-Site Inspection conducted on your principal place of business
- Verification Of Business Credentials (i.e. bank and trade references)
In addition, each potential Data Furnisher must meet the reporting requirements of the bureaus (see below). Keep in mind, these requirements may change at any time so it is best to contact the bureaus directly to verify the current requirements.
- Equifax – 500 Active Accounts
- Experian – No Minimum
- Trans Union – 100 Active Accounts
- Innovis – 100 Active Accounts
Active accounts are defined as those with an outstanding balance (i.e. Open Accounts, Charged-Off Accounts, Collection Accounts, etc.). Closed accounts that have a zero balance do not count towards the minimums above, however they may still be included in your file.
It is also important to note that each owner on an account will be counted as an active account. For instance, joint accounts count as two towards the minimum, one for the primary account holder and one for the joint holder.
In addition, the bureaus allow you to go back up to 7 years in your portfolio when determining which accounts to report.
And finally, the bureaus only require the minimum number of active accounts on your first file. Future files may fall below the minimum requirement.
Hopefully following these tips, and working with a service provide like Datalinx, will help you meet the requirements for credit reporting.