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| *Loan,banking and credit>>>credit report |
Credit - Why do bad things get reported but good things don't? |
Why is it that rent and utility accounts aren't reported to the credit bureaus unless one defaults on them? They are so quick to report these things if you default on them, yet when one always pays these things in full and on time, it doesn't get reported at all. I feel this is wrong credit practice. If someone defaults and it gets their accounts reported as "bad", then someone who always pays their accounts in full and on time should get reported for being in good standing. I see that only credit card accounts and loans are the only accounts that get reported when either in bad or good standing...rent and utility accounts only get reported if in bad standing. Why is this? Is there anything I can do to get my landlord and utility companies to put a good mark on my credit for always paying on time? The difference is that credit cards and personal loans are credit and rent and utilities are not. Just like cell phones, trash service and gym memberships all do not get reported unless you default on them. It cost money to report to the credit bureaus, so the only time things like the above are reported are when you do not pay them. It may not be fair, but it's the way it is and we all have to live with it. Source(s): Finance Manager for over 7-years. Well, it costs money to post to some one's credit report, so most likely smaller entities (local utility companies, local landlord, and especially owner landlords) aren't going to pay the expense to have it reported unless there is a problem. I think part of it has to do with utility companies are REQUIRED to provide you service, and therefore are not described as a "credit giving" service. They cannot deny you service due to your credit history(although they may ask for a deposit). Therefore they are not giving you service based on your credit, therefore paying them on time does not improve your credit score, but they can add a collection to your credit report. The same goes with hospitals. They cannot deny you treatment even though you might not pay, but they can show a judgement or collection if you do not pay. I agree with you 100%. Acutally with the help of PRBC, it is. PRBC is a new credit bureau that specializes in "alternative credt" by reporting accounts that do not reflect on traditional credit reports like rent, utlities, cable, cellular phone, insurance and score them in a Bill Payment Score report that can be included with the other credit reports when applying for credit. The BPS score alone can help qualify for a mortgage. (click this link for more details http://prbc.com/consumers/how/mortgage.p... I've posted several links to this website in which it explains it more in detail than I ever could. I've enrolled in the program myself, and it's helped me out quite a bit! credit analyst/underwriter http://prbc.com/consumers/how/mortgage.p... http://prbc.com/main/about.php http://prbc.com/ |
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