Every lender must make the decision on whether or not to report credit data. Furnishing data to the credit bureaus is still voluntary, but there are a number of reasons to embrace this action as a lender. Here are five reasons to consider if you are on the fence about becoming a data furnisher.
GET ON THE SAME PAGE
Yes, data reporting is still voluntary,
but don’t forget, reporting can
help the consumer, a big priority
for regulatory agencies.
Data reporting protects consumers
throughout their financial journey by
revealing a more complete credit history.
A credit report with greater details
allows consumers to evaluate mistakes
of the past and make themself more
desirable to lenders in the future.
MAINTAIN OR INCREASE
If you’re not reporting
what is the incentive for
your customer to pay on time?
There are no consequences
on their credit file, and they might
prioritize their payments according
to who reports and who does not.
Your customer may seek
additional credit elsewhere.
If you’re not reporting data,
another lender does not
have visibility to their obligation
and may extend credit.
This may cause your customer
to become overextended,
impacting their ability to pay you back.
Good credit is a valuable asset.
When consumers pay you on time,
their credit scores can increase,
giving them access to more
financial products, at a lower cost ...
but only if you report the activity.
On the flip side, incomplete or
missing data can have a
negative impact to their score,
or result in no score at all.
When lenders consistently report,
consumer files thicken
and all lenders gain visibility
to credit quality and behaviors.
Layer on the power of analytics and lenders can
proactively determine when a consumer is
in the market for a new line of credit,
on the verge of transferring a balance,
or entering a state of credit distress.
Insights will help you maximize profitability
and retention, and minimize losses.
To learn how to begin reporting to Experian, visit/call