Using the “stick” method of reporting commercial credit to get clients to make regular on time payments is highly effective as well. Contrary to the reward method, a negative report on a business’ credit score can be just as effective. The truth is that you’re not going to have many […]
Reporting Commercial Credit: The Stick Is Not As Bad As You Think
November 16, 2018 By Leave a Comment
Reporting Commercial Credit: Should I Use A Carrot Or A Stick?
November 15, 2018 By Leave a Comment
Ideally, you don’t ever want to have to report another small business in a negative way, but it happens. There are two good reasons businesses report commercial credit to the four credit bureaus: to encourage on-time payments and to decrease the chances of a default on payments and needing to […]
Auto Loan Credit Reporting – Do I Use a Carrot or a Stick? Part Two
November 8, 2018 By Leave a Comment
Choosing the carrot is a common choice for auto loan credit reporting. What happens when the stick or negative reinforcement is the answer? Sometimes, consumers respond to these “stick” tactics as payments become late or missed altogether. Communicating About Interest Rates The initial stick is the realization that interest rates […]
Auto Loans Credit Reporting – Do I Use a Carrot or a Stick? Part One
November 6, 2018 By Leave a Comment
Extending credit to an individual for the purchase of a vehicle can be a risky venture. Small-business owners verify and examine the person’s credit history with as much attention as possible. At the end of the day, the business must make a decision on either taking the customer on or […]
Reporting Consumer Credit: The Stick Approach
November 1, 2018 By Leave a Comment
The second part of our two-part series on how to report consumer credit is humorously called the “stick approach” because it is symbolic of the sticks that farmers used to use on donkeys who were being stubborn. Whenever a carrot didn’t get the animals moving out in the field, a […]