What Are The Requirements For Credit Reporting?

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.

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How To Report To The Credit Bureaus

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…

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Why Report To The Credit Bureaus

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…

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Who Reports 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

Child Support Agencies*

Collection Agencies / Debt Purchasers*

Credit Cards ? Banks, Credit Unions, Travel & Entertainment (non-Retail Cards)

Mortgage Loans

Retail Accounts (store exclusive)

Sales Finance

Student Loan Reporters*

Utility Companies*

Property Management Companies / Residential Rental Agreements

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Why should I report to the Credit Bureaus?

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:

http://www.datalinxllc.com

and let us help you report your consumer credit data to the credit bureaus.

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Is there a minimum number of records required to report to the Credit Bureaus?

Each credit bureau sets their own policy regarding the minimum number of records they will accept (see below). However, there are some things you can do to ensure you meet their bar.

First, make sure to report your entire portfolio. This will maximize the total number of accounts in your file and is altogether better for the consumer. Reporting both good and bad debt is looked upon favorably by the credit bureaus.

Second, you are allowed to go back in your system up to 7 years when creating your file. This would include closed accounts, open collections, and charged-off debt. Again, this will help to increase your file size.

Lastly, using a credit bureau reporting service, like Datalinx, may help by stacking your information along with all our other customers. Because of our established relationship with each of the credit bureaus, we can reassure them that your data will be evaluated prior to submitting electronically.

Credit Bureau Minimums (as of 7/2008):

Equifax

Minimum 500 active accounts with the exception of Credit Unions and Banks which have a 100 record minimum.

Experian

No Minimum, however a waiting period may apply for industries other than Banks, Credit Unions, or Mortgage lenders.

Trans Union

Minimum 100 active accounts for all industries except Banks and Credit Unions where there typically is no minimum.

Innovis

Less than 100 accounts must be reported through an approved credit bureau reporting service such as Datalinx.

*States who require Fannie Mae and Freddie Mac loan reporting may bypass these minimums. Please check with the bureaus for more information.

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Sticky: Welcome to the Datalinx FAQ site!

This is an interactive site to help answer your questions regarding credit reporting and conversion to the Metro 2 format.

We’re here to help you learn how to report credit – how to decide if you should use a credit reporting service or if you should invest in credit reporting software.

Feel free to post your comments or questions and we’ll do our best to get back to you with answers or other helpful advice. You can also email us directly at support@datalinxllc.com.

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