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.

Technorati Tags: consumer credit reporting, Credit reporting software, How to report credit, How to report to credit bureaus, Metro 2

What is E-Oscar?

what is e-oscarE-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.

Technorati Tags: Credit reporting software, E-Oscar, How to report credit, Metro 2

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.

Technorati Tags: Credit reporting software, datalinx, datalinxllc.com, How to report credit, How to report to credit bureau, How to report to credit bureaus, Metro 2, Report credit, Report to credit bureau, Report to credit bureaus

Why use a Credit Bureau Reporting Service?

Should you purchase credit reporting software or go with a credit bureau reporting service? Before you can answer this question it’s important to understand the difference between the two.

Credit reporting software is normally a stand alone product where you enter the account information that you would like to report to the bureaus. Users update the information on a monthly basis (enter new accounts, update existing ones, etc.) and then generate an export that they send to the bureaus for processing. This is mainly for customers with no existing account management system, and/or have the time and resources to manage a credit reporting system themselves.

A credit bureau reporting service (or processor), on the other hand, works with your existing system to create an export that can be converted into the Metro 2 format. This is most beneficial for customers who already have an account management system in place and simply want to report their data to the bureaus. With a processor you simply provide the export on a monthly basis and they manage the conversion and submission to the bureaus.

In terms of price, buying credit reporting software usually means higher startup costs (both in dollars and time) but relatively low maintenance fees going forward. Processors tend to have lower startup costs but charge a monthly fee throughout the duration of the service. What will be key in your decision is to consider some of the hidden costs.

For instance, both methods offer ongoing customer support, but with processors the support is usually included in the fee. Software companies will typically charge extra if you need technical support. You may also need to upgrade your software at some point which may cost some additional money (and time) to purchase and install.

The bottom line is do you have the time and resources necessary to install and manage your own credit reporting system? If so, then software is the way to go. If not, then a service provider may be your best bet.

Technorati Tags: credit bureau reporting processor, credit bureau reporting service, Credit reporting software, credit reporting system, Metro 2, Report credit