How To Report Adverse Credit To The Bureaus

Report Adverse Credit To The Bureaus

If you’re a creditor or a landlord and you have a customer who is delinquent on an obligation, you can take action. Among the best methods to provoke a reaction and get a payment from a delinquent client will be to report adverse credit to the credit reporting agencies — Trans Union, Experian and Equifax. Massive banks and lenders have relatively inexpensive contracts with all 3 credit agencies, but as an individual, you’ll need to cover each trade line you wish to report.

1. Review your state’s laws.

While there are differences in all state legislation,
generally you have to give notification to a borrower or delinquent client if you’re planning to take adverse actions on behalf of his credit report. You generally need to contact the client 30 days after his first delinquency and then 60 days later, before
taking action.

2. Outsource the debt.

This can be done by selling the delinquent debt to a collection company. And, needless to say, the debt is immediately reported to the credit reporting agencies.

3. Utilize a tenant-tracking support to report poor debtors to the credit agencies.

These are businesses that help landlords recover lost rent from delinquent tenants. You’ll have to cover a one-time processing fee for every trade line you report to the credit bureau.

4. Treat yourself as a business enterprise.

This is most easily managed by changing your private business into an LLC. Creating an LLC is relatively simple and cheap, but you ought to speak with an accountant or a lawyer if substantial amounts of cash will flow through the business.

5. Register with the three major credit bureaus after you’ve created your incorporated business or LLC.

These bureaus won’t honor any request from individuals, so make sure your company has this designation. Once approved, you are able to report individuals to the credit bureaus.

Items You’ll Need

* Duplicate of delinquent bill
* Copies of correspondence with debtor
* Social Security number of debtor
* Date of birth of debtor

Caution

* Notice that monthly contracts with the credit bureaus are often quite expensive. It may not prove prudent to enroll with the credit bureaus if you only have a couple of bad debts to report. Consult with us at Datalinx. We’re here to help you not only report to the bureaus, but also help you collect those payments you’re owed.