How Do I File on Someone's Credit Report?

A credit report is designed to show a potential borrower's creditworthiness--that is, the likelihood that he will be able to pay the loan back on time. Many small and personal lenders assume that they do not have the same power as large companies to report debts and delinquencies on a borrower's credit report. However, any business owner can file such reports. After the initial setup, reporting credit data is a fast and simple task.

Instructions

1

Open an account with each of the three major reporting bureaus: Experian, Transunion and Equifax. You can open an account on the website for each bureau. Each agency will charge a fee, typically in the form of a subscription charge that you pay online with a credit or debit card.

2

Draft a disclosure notice that advises the borrower that you will report her payment history to the three credit bureaus. State in the disclosure notice that you have the right to access the borrower's credit report. If a prospective borrower refuses to sign the disclosure, do not do business with her.

3

Complete the credit data reporting form for each agency. On each form, you will include the borrower's identifying information, such as name, address and Social Security number. You will also include the type of debt owed, the amount of the debt, and whether the borrower is current on his loan. Submit the reporting form to each agency online.

4

Report data for your borrowers each month until they pay off or otherwise close the loan. If the borrower does not make timely payments as agreed, this consistent reporting gives other prospective lenders the information they need to deny the borrower a loan or charge higher interest rates. If the borrower does pay as agreed, it helps the borrower to build a solid credit history.