How to Report Debt on Credit Reports

A consumer credit report helps businesses decide how risky it would be to extend credit to an individual based on the standing of his past credit accounts. If you have an uncollected debt, consider reporting it to a credit reporting agency. This will negatively affect that person's credit report and let other companies know that this person is credit risk. It can also help your collect that debt because to remove that debt from his credit report, that person will have to contact you.

Instructions

1

Gather all the information you have about your credit accounts, including contracts and receipts. Keeping accurate records is very important because they will help you prove that you are owed a debt in the event of legal action. Third-party credit reporting services also require documentation of your credit accounts.

2

Consider notifying the debtor that you will be adding his delinquent account to his credit report. Although this not required, it can be enough to spur the debtor into making some sort of restitution to you.

3

Report directly to the credit reporting agency if you have a high volume business. If you become a member of a credit reporting agency, you can report credit accounts for positive and negative activity. However, you must have at least 100 credit accounts to report to the credit reporting agency and be willing to submit the information in the proper electronic format. If you only have one or two credit accounts to report each year, this is not the option for you.

4

Hire a collection agency to report the delinquent account to the debtor's credit report for you. An added benefit is that the collection agency will also try to collect the debt for you by locating and contacting the debtor. Be prepared to pay a percentage of collected debt to the collection company in addition to any fees they may charge.