How to Do Credit Trade Lines
If you run a business or are thinking about starting a business, you may consider reporting your business trade line on the credit files of your customers. This increases your odds of receiving timely payments since customers do not want to damage their credit ratings. Your business must first be approved for membership within the credit reporting program regulated by the credit bureaus and possess a valid membership ID. The documentation required for membership is extensive and businesses must purchase the software necessary to ensure accurate credit reporting.
Other People Are Reading
Things You'll Need
- Business documentation
- E-Oscar software
- Automated reporting software
- Credit bureau membership ID number
Instructions
-
-
1
Contact the client services department at the credit bureau you wish to report through to determine your eligibility. Not all businesses are allowed membership in the credit bureaus' reporting program. Business eligibility is determined on a case-by-case basis.
-
2
Submit documentation on your business. You must prove that you hold a legal business license in your state of residence. You must also supply the credit bureaus with proof of identification and your payment guidelines. In some cases you may also be required to provide photographs, copies of your application license and inspection reports.
-
-
3
Schedule a physical inspection of your business with the credit bureau you wish to report through. Representatives will be sent to your company to verify documentation you provided and to ascertain that your business physically exists. Credit bureaus charge a fee of $75 to $100 for this service regardless of business size.
-
4
Join e-Oscar and provide the credit bureaus with a faxed copy of proof of your membership. E-Oscar is a program monitored by the credit bureaus that allows businesses to receive notification in the event any credit information they provide is disputed by consumers. The e-Oscar program must be purchased for use by businesses. It is not provided free of charge from the credit bureaus.
-
5
Request your membership ID number from the credit bureaus. After you have provided all the necessary documentation, received approved inspection reports and purchased your e-Oscar programs, you may request proof of membership in the credit bureaus' reporting program. You must provide your membership ID when submitting information to consumer credit reports.
-
6
Purchase automated reporting software after your membership is approved and you receive your ID number. The automated reporting software you are required to use may change as reporting guidelines change. As of September 2009, the preferred reporting software is Credit Time 2000. This program allows you to easily maintain accurate records on your consumers and automatically report payment histories every month. Credit bureaus do not accept manual reports. All reports must be submitted via approved reporting software. Like e-Oscar, reporting software is not provided free of charge from the credit bureaus.
-
7
Maintain your membership. If at any time your business status changes, you must immediately notify the credit bureaus to determine if your company is still eligible for reporting privileges. Not doing so may make your business susceptible to lawsuits from consumers for fraudulent credit reporting practices.
-
1
References
Resources
- Photo Credit Casey Serin: Flickr.com
