Personal finance hinges on the credit reporting industry. A credit rating gives you an unbiased financial history and can give you an idea of someone's fiscal responsibility. This provides incentive to customers and clients to pay credit accounts in a timely manner. You can send positive credit information on accounts in good standing so that their credit rating goes up. Also, knowing that you can make their credit rating go down might keep some credit accounts from being late on their payments.
Instructions
- 1
Keep good records. You should have detailed files that include contracts and receipts of financial transactions. You will need these records to prove your financial relationship with the credit accounts. Remember that credit accounts in good standing should only be sent to credit reporting agencies every six months. Negative information should only be sent after the credit account has been delinquent for more than 90 days.
2Contact the owners of the credit accounts to inform them that you will be sending new credit information to the credit reporting agencies. This is not a requirement, but it may get you a payment on a delinquent account. At the very least, it will encourage good-standing accounts to remain that way.
3Enlist the help of a credit reporting service to submit the credit information to the credit agencies electronically. You can pay these companies a flat fee per account and they will use their relationship with the credit agencies to send new credit information. It is very cost-effective if you only have a few credit accounts to manage each year.
4Buy a membership to the credit agencies if your business volume warrants it. Credit agencies allow you to send new credit information directly to them using their electronic Internet-based system if you buy a yearly membership from them. You must have at least 100 credit accounts to report each year to be eligible. Any less would not be worth the hefty membership fee required.
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