Data reporting is simply sending consumer payment information to a CRA( Credit Reporting Agencies) to help improve your collection efforts and benefit those consumers who continue to pay you on time. The CRA’s do not charge you to report.
This number will vary depending on each company’s customer base. As part of the CRA’s service prior to reporting, they can perform an analysis of your customer portfolio, which will include this information.
The accounts that you currently send to collections or write off are usually already being reported to a CRA as derogatory or delinquent. The majority of your other customers who do pay on time should actually benefit positively from data reporting.
The credit reporting agencies (CRA) are separate entities and maintain their own databases, therefore your trade lines will only be displayed on the bureaus which you submit data and have a reporting agreement with.
A Stacking Service or Third Party Processor, will accept accounts from multiple customers who do not meet the current bureau account reporting minimums, combine the accounts together and submit a “stacked” file to the bureaus. You must be approved by the credit bureaus to use this service, meet their processor reporting minimums and have a data furnishers or service agreement with each bureau to which The Service Bureau will forward your accounts. This service is available for Equifax, and TransUnion, additional processing fees apply.
Each Credit Bureau has their own policy on reporting minimums. Basically, you should report your entire portfolio. If you are still unable to meet their minimums, the bureaus may allow you to report through a Third Party Processor/ Stacking Company. You will need to have Metro 2® compliant software and a data furnisher’s agreement with Experian, Equifax, or TransUnion in order to use this service.
Most companies report monthly to CRA’s.
Based on how your customers payment history, this will determine whether it has a positive or negative affect on their scores, if they pay on-time it will benefit them greatly, if they choose to pay late or not at all then it will affect them negatively.