Credit bureaus don’t always get information on consumer activities directly. Often, small businesses that deal with credit bureaus can begin transferring information to them. Apart from the information available from banks, the reporting done by small businesses can contribute to the credit bureau’s database. Here is how small businesses can report to credit bureaus:
- Reporting Details – Small businesses can report consumer credit activities to the credit bureau. This can include information about credit cards that have been opened and closed, the total number of accounts that a consumer has, the status of payments on each account, and any other issues that may arise from consumer credit activity.
- Accuracy of Information - The details included in a consumer’s credit report come from information gathered by businesses and reported to credit bureaus. Credit report information can help in determining the quality of a consumer’s credit and the number of loans and other credit that a person can be granted. Thus, businesses must ensure to report accurate information to avoid incorrectly influencing a consumer’s credit standing.
- Reporting Corrections – Small businesses can also report corrections directly to the credit bureaus. They can also ask consumer inputs to verify information that is passed on. In case a consumer comes across inaccurate information, he/she should gather sufficient evidence around the inaccuracy and reach out to the credit bureau or the business. For instance, if a consumer notices that the credit report reflects a credit card as open although the account may have been closed five years ago, then the consumer must notify the credit bureau. The credit card company, if informed, should pass on such corrections to the credit bureau to ensure accuracy.