It’s no secret that having a credit report filled with a significant number of positively reported accounts is good for your credit reports and credit scores. But what if you have a liability or obligation that you pay month after month that is not being reported to the credit reporting agencies? How do you go about having it added?
This little gem was published at the Dallas Morning News’ blog site recently, “To improve your credit score, it’s also important to make sure that any positive repayment history is correctly reported by all three credit bureaus (Experian, Equifax, TransUnion), especially if your credit history is sparse. If you find that your student loans aren’t being reported correctly to all three major credit bureaus, ask your lender to do so.”
Sorry, but that doesn’t work. And why not? It doesn’t work because credit reporting is 100% voluntary. You cannot “ask” and you certainly cannot force your lender to report your account to the credit reporting agencies. There is nothing in the Fair Credit Reporting Act (“FCRA”) that compels any lender to report anything to any credit-reporting agency. The FCRA simply requires that lenders maintain reasonable procedures ensuring the maximum possible accuracy of what they do choose to report.
The best way to ensure that you are rewarding for your responsible credit management practices is to do your best to choose lenders that report to the credit bureaus as standard procedure. The easiest way to find out if your lender reports is to ask them before you apply. Most larger lenders do report to all three credit bureaus.
The real issues are with the smaller lenders, such as credit unions. There’s a cost involved with having a relationship with a credit bureau and some smaller lenders don’t want to incur that cost. It’s more cost effective for them to have an account with only one credit reporting agency rather than all three.