Let’s face it: the days of sealing a deal with a handshake are far behind us. Today, a credit score and data from a credit report are much more important than friendships or character when it comes to financial decisions. Banks and other financial institutions have relied upon credit data for decades for impartial, reliable guidance as to an applicant’s ability to repay a debt or pay on time. Why shouldn’t you do the same?
Datalinx is a leading credit reporting service company. We’re in business to help your business or organization benefit from reporting to the credit bureaus. If you extend any kind of credit to customers or tenants or rely on timely installment payments, call Datalinx. We can get you set up as a data furnisher and started with our simple and streamlined credit reporting software.
The more accurate data we can enter into the credit reporting ecosystem, whether positive or negative, the better. Here’s why.
Building a credit history for the next lender
Some people, especially young adults, have no credit data in their credit report. For whatever reason, they’ve not yet had to apply for credit in their own name. If you’re a landlord or auto dealer, you’d most likely ask for a cosigner with a credit history.
But during the time you’re collecting payments from your young customer, reporting his or her payment history to the credit bureaus will help not only the customer or tenant build credit. It will also give the next lender a credit history to review for future credit decisions. It’s like paying forward the gift of a credit report!
Reducing the risk of extending credit
It’s important to report your customer’s credit data to the four major credit bureaus: Equifax, Experian, Innovis, and TransUnion. The more you report, the better picture you and other lenders will have of a person’s ability to repay. You’ll have a much better idea of whether your potential customer or tenant will be able to pay on time, or pay at all, by reviewing a comprehensive credit report. Plus, if you have to say “no,” you’ll have the record of a credit report to back up your decision.
Minimizing the potential for too much credit
Let’s say your applicant’s credit report shows a couple of open credit cards with small balances and a car loan that’s been paid on time. Based on this information, you might approve their request for a unit in your apartment building with a little higher monthly payment.
But what if the applicant also has a second, higher car payment with a dealer who doesn’t report credit? Or they still owe back rent to their last landlord (who also never reported to the credit bureaus)? You could be setting them – and yourself – up for financial failure.
Reporting can build your organization’s reputation
When you report your credit data to the credit bureaus accurately and on time, you’re building your reputation as a reliable business. Your customers or tenants understand what will happen if they don’t pay on time. In fact, they will probably change their behavior to avoid a bad credit report. Those who do pay as expected will be happy that you’re helping them build a positive credit history. You’ll be a hero to everyone who does business with you!
Reporting your payment data to the four major credit bureaus is easier than you think, especially when you partner with a team of experienced professionals like the Datalinx team. We’ve helped businesses of all sizes contribute to the world of credit for nearly 20 years, and we’d like to help you make a difference for your company. Give us a call today to talk about how we can help!
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