Do you extend credit to consumers for student loans? If so, you might one day find yourself dealing with late or missed payments, or even having to start the collections process. One way to avoid these issues and help your customers build credit history is to report student loan payments to the four primary credit bureaus.
You don’t have to be a major lender or a bank to report to the credit bureaus like Equifax, Experian, Innovis, or TransUnion. If you register as a data furnisher, install the right software, and set up the correct format, you can start reporting, too!
As a credit reporting software service, Datalinx can help you easily navigate this process. We’ll ensure your data is reported accurately and on time with each of the four credit bureaus.
Step One: Sign Data Furnisher Agreement
Each credit bureau must approve your student loan data before they can load it into their database. Part of that approval requires signing a data furnisher agreement. Keep in mind, this process can take a few weeks. But you only need to sign an agreement with the bureaus you want to report to. At Datalinx, we have nearly 20 years of experience helping customers with this process. We can assist you with obtaining all the necessary information to get started right away.
During this process they may ask you questions about the type of data you will be reporting and how you manage that data internally. They may also ask you to allow for an on-site inspection of your place of business. Again, Datalinx can help you with these conversations. We’ll work with the bureaus to make sure they have everything they need to proceed.
Step Two: Convert To Metro 2 Format
All four bureaus use the Metro 2 format to accept student loan data into their consumer credit database. You must convert your data into Metro 2 to report to them directly. Our credit reporting software system allows you to use your existing accounting system to generate the core information required for reporting (usually in Excel or Text format). We then take that information and convert it into the Metro 2 format for monthly reporting to the credit bureaus.
There’s no need for a separate software package with our service, just a simple, easy-to-use template with the required fields for reporting. Please contact us for more information.
Step Three: Test Your Metro 2 File
The last step is to test your new credit data file with the credit bureaus. Their testing process usually takes two to four weeks. It covers the integrity of the file, or how well you followed Metro 2 guidelines. It also covers the integrity of the data. This is how well you followed federal laws including the FCRA and FCBA). By using our credit reporting software service, we will validate your file for testing purposes. We’ll also continue to ensure you’re reporting accurate and timely information every month after your file has been approved.
How to Report Student Loans to Credit Bureaus
Datalinx will help report your in-house business loan credit data to the credit bureaus. Contact us today to talk about reporting your student loan payments