Reporting consumer data to credit bureaus is essential for your customers to reach their financial goals and imperative for you to grow your business. By reporting credit data, you can:
- Reduce risky lending decisions – With access to more comprehensive credit data, lenders have a more accurate picture of a consumer’s behavior and can make more informed – and less risky – decisions.
- Minimize delinquencies and collections – Other credit grantors may offer credit to your customer, not knowing that the customer already has an obligation to you. This may result in your customer getting over-extended and negatively impact their ability to pay you.
- Increase on-time payments and collect bad debt – When customers know that their lenders report, they are more likely to pay on time. You can also encourage late payers to resolve outstanding debts before delinquency affects their credit.
- Improve your customers’ experiences and cross-sell – By reporting positive data about your customers, you can reward good behavior and extend additional credit for other products and services.
- Align with regulatory expectations and industry best practices – While credit data reporting is voluntary, you can align with regulatory priorities and best practices to help and protect the consumer throughout their financial journey.
Information provided by Experian Information Solutions, Inc. All rights reserved.