By reporting rent payments to the credit bureaus you help maximize your rental debt recovery.
First, by reporting your rent payments to the credit bureaus you help prioritize them above other financial obligations your tenants may have that are not being reporting. Second, you offer them a sort of hammer-shaped carrot for making their payments on-time by establishing a positive payment history for them with the credit bureaus. Finally, if all else fails and the tenant moves out or is evicted due to non-payment of rent, you can report their unpaid balance to the credit bureaus as a collection, saving yourself the costs of hiring a third-party collection agency or seeking a judgement in court.
To learn more about the benefits of sharing your rental payment data with the credit bureaus contact us at (425) 780-4530 or email us at firstname.lastname@example.org.
As you are getting started in your business, you can use your personal credit for the business. However, establishing credit with a credit reporting service, in the name of the business, is very important. Business credit reports compare the stability of a business to similar businesses participating in the credit reporting service. Businesses involved in extending credit use these reports to determine terms of financing. Suppliers and shipping companies review the credit history of your business when deciding whether to grant a line of credit. Firms participating in a business credit reporting service are more visible in the marketplace. Being listed with the business reporting service helps consumers find your company through internet searches that link the firm’s name to the name or key words in the firm’s credit report.
To start the process of building a credit file for your business, obtain a tax identification (ID) number from the Internal Revenue Service (IRS). Next, obtain a unique identification number for your firm, called a Data Universal Numbering System (DUNS) number, through <a href=”http://www.dnb.com” target=”_blank”>http://www.dnb.com</a>. Once you have obtained the DUNS number, become a subscriber of a reporting service by submitting financial statements and registration information on your business to one of the three major national credit reporting agencies. To ensure the most favorable credit rating, include the strongest or most well-established opened trade line-of-credit accounts in your registration information. The reporting agency will contact the creditors you list for the most current information.
A business credit report includes information such as:
Commercial credit risk score
Potential for business failure indicators
Credit filings in existence for secured property
Business ownership information
Other businesses owned by the same organization
Public records of security interest filings
The three major national business reporting agencies are: <a href=”http://www.dnb.com” target=”_blank”>Dun and Bradstreet</a>, <a href=”http://www.experian.com/business-services/business-services.html” target=”_blank”>Experian Business</a>, and <a href=”http://www.equifax.com/business” target=”_blank”>Equifax Business</a>. Each of these agencies has extensive information on their web sites regarding their services. Contact us at (425) 780-4530 to learn more about pricing and additional services.
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.
E-Oscar is a web-based tool used by the credit bureaus (Equifax, Experian, Trans Union, and Innovis) and Data Furnishers for managing consumer disputes.
When a consumer disputes a tradeline on their credit report, the credit bureaus enter the dispute into E-Oscar which in turn notifies the Data Furnisher of the dispute. The Data Furnisher can then use E-Oscar to either update the tradeline or verify that the existing information is correct.
In addition to responding to consumer disputes, Data Furnisher’s can also use E-Oscar to process out-of-cycle updates to their tradelines. What they can’t do is enter new tradelines in the system. In order to enter new tradelines you need to submit a Metro 2 credit reporting file.
Datalinx can help guide you through the sign up process with E-Oscar and also work with you on generating a Metro 2 file.
With the ebb and flow of our economy, businesses who extend credit to consumers may find themselves needing to report their credit accounts to the major credit bureaus.We can help you understand how to do this…
If your business extends credit to consumers, you may find yourself wondering if you should report your credit accounts to the credit bureaus. In this video – and on our site, we can help you understand why you would report to the credit bureaus…
Anyone who grants an extension of credit to a consumer is eligible to report to the credit bureaus. That said, there are a few industries who more commonly report than others(listed below). A few of them (indicated by an asterik) even have special reporting requirements defined in the Metro 2 Format. As a credit reporting software service, Datalinx can help you interpret those guidelines and make sure your data is reported accurately and timely to each of the four major bureaus.
Banking / Savings & Loan / Credit Union / Loan Finance – Installment Loan & Line of Credit
Yes you can but you will need to convert that to the Metro 2 format. Lucky for you, credit reporting software companies like Datalinx have a process already setup to assist.
We have several customers who have decided not to upgrade their current system and instead use a service to convert the data for them. We accept most kinds of fixed and delimited flat files for importing into our conversion software. While your accounts may require some additional editing to bring them into compliance, our software system will guide you through the process with ease.
Simply put, the credit bureaus are your best resource for rewarding consumers who consistently pay you on time, and collecting from those who fall delinquent. In fact, by just reporting to the credit bureaus you will likely see a drop in the amount of delinquent payments because consumers do not want a negative mark on their credit report.
The four credit bureaus have exposure on a national, and sometimes international level. When a consumer moves from one state to the next their credit report will follow. If they are delinquent with you, and you report, their data will show up the next time they apply for any sort of credit (i.e. Credit Card, Car Loan, Rental Application, Etc.). And your data stays on the consumer credit file for 7 years from the date they first fell delinquent. You simply cannot get that kind of exposure on your own.
At DatalinxLLC.com, we’re committed to helping small business owners with their credit reporting needs – so visit our site today:
The short answer is no. Each credit bureau maintains their own seperate database of consumer credit information which they use to populate their own consumer credit report. The strength of their database directly impacts the sales of their credit reports and scoring models so it is not always in their best intersts to share the information. In fact, often times the bureaus will compare their credit report with a competitors in order to win over more business.
That said, they do work together in some aspects in order to bring more standards and accountability to their industry. One example of this cooperation is the Consumer Data Industry Association (CDIA). Representatives from all four major credit bureaus attend regular meetings of the association to help being more standards and accountability to their industry. The Metro 2 Format was a cooperative effort between all four bureaus as was the creation of the E-OSCAR system for automated corrections to consumer credit files.
While the bureaus remain competitive with eachother, they also recognize their impact on individual consumers and strive to encourage high standards for maintaining data integrity as an industry.