How To Register My Company With The Credit Bureu

Download Article

Credit bureaus are agencies that proceed credit reports on file for every consumer with a federally-issued social security number (SSN). A credit report file contains information about an individual's financial debt, including account numbers for electric current and past debts, loan types and terms and payment history. If an individual defaults on loan payments, the creditor may opt to send a written report of the late payment(south) to the credit bureaus and so that it will be reflected in the consumer'due south credit file. If you are a small business with few debtors, you will accept to use a middleman and pay a fee to written report to the credit bureaus. Otherwise, you may join the credit reporting bureaus and report directly to them.

ane
Research the 3 credit agency agencies. In the U.South., there are three national credit bureaus, Equifax, Experian, and TransUnion. These bureaus collect, update, and store credit histories on most 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.^[one]
- A credit score ranging from 300 – 850 is assigned to each consumer based on the number of belatedly payments, the amount of outstanding debt, or whether the person e'er filed for defalcation or defaulted on a loan.
2

Use credit reporting to collect bad debts. Most people do not want a negative report on their credit history. If yous are trying to collect coin from someone and they haven't paid, give them a terminal due date. So tell them you volition be reporting the non-payment to the 3 credit bureaus if the coin is not paid by that date.

Advertisement
3

Negotiate with removal of a bad credit entry. Some other tactic to try in collecting payment is to study the bad debt to the credit agencies, and then offer to remove it if the debt is paid within a specific fourth dimension menses. Exist sure that the debt is reported to all three bureaus, as an unreported debt will non show up on a agency'south credit report if that credit agency does not take a record of it.^[ii]

i

Hire a collection agency. This is i of your options if you are non a big lender, only rather a small-scale-volume creditor with only a few unpaid debts from customers. Collection agencies endeavor to collect the debt owed to y'all. If they cannot collect, they written report the default account to the three credit bureaus in their name. Therefore, using a collection agency is an indirect way of reporting to the credit bureau agencies.^[three]
2
Cull a collection agency carefully. Do 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 corporeality they collect.
- Verify that the collection agency yous cull is a member of all three credit reporting bureaus.
- Collection agencies typically offer a discount for payment that may exist substantial (l% or more).
- Exist aware that you may be liable to the consumer if the collector violates the federal and state laws regulating the collection of a debt.
3
Hire a credit reporting service visitor. Credit reporting services volition to do the reporting for you. Non only will these companies help you found accounts with the three credit agency agencies, if applicable, but they also 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.

i

Bring together the credit bureaus. Being a member of all 3 credit bureaus allows you to report straight to them, without paying a middleman. In guild to be accepted every bit a fellow member of one of the 3 (or all three) national credit bureau agencies, y'all must have a certain number of client payment histories and a specified minimum number of open up accounts with debtors. This could exist every bit many equally 500. Otherwise, y'all volition accept to choose one of the methods listed elsewhere in this article.^[5]
2

Call the credit agency and inquire for their qualification requirements. If you qualify, ask them to send yous an awarding. Submit your application and wait for an approval.
iii

Pay the fees and service charges. You lot will now be able to submit reports directly to a credit bureau. Go on in heed that the costs you incur through the credit bureaus will amount to less than those charged by collection agencies and credit reporting agencies.

Add New Question

Question

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

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 equally a Vice President for Blue Cantankerous Blue Shield of Texas. He has a BBA in Industrial Direction from the University of Texas at Austin.

Business Advisor

Skilful Respond

A person's disability does not bear on their credit study or rating. If disability is the crusade financial stress, delinquencies, or tardily payments, the consumer should contact his creditors and the credit bureaus and add an explanation of his circumstances to the credit report.
Question

How tin I written report payments on a land contract for a business firm?

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

Business Advisor

Skillful Answer

Only members of the 4 credit reporting bureaus — Equinox, Experian, TransUnion, Innovia — can report credit transactions to the bureau. Members are business concern organizations that provide credit to their customers. Credit results betwixt ii individual individuals are usually not reported unless legal action results.

Enquire a Question

200 characters left

Include your electronic mail accost to get a message when this question is answered.

Submit

Advertizement

Video

Inquire your accountant for a good collection bureau referral. Accountants often network with business and real manor attorneys, who sometimes act equally collection agents.

References

About This Article

Thank you to all authors for creating a page that has been read 117,088 times.

Reader Success Stories

Sidney Snead

October 10, 2017

"I wanted to know how to report a personal loan betwixt 2 people. I learned that credit bureaus are for businesses,..." more