Do Private Lenders Report to the 3 Credit Bureaus?

Q: I had a $350,000 mortgage with a perfect payment history that was paid in full last year. The bank is telling me that because it’s a private company, it can’t report my mortgage to the three major credit bureaus. I want to have this mortgage on my credit reports because I know it would improve my FICO credit score. How do I get the bank to transmit this information on my behalf?Â

A: You can’t. The reason the bank gave you was bogus â€” private lenders can report information to credit bureaus just as publicly traded lenders can.

However, a lender might not want to report information about good customers to the credit bureaus for fear a competitor might see the data and steal these profitable borrowers away. Or it simply might not want to deal with the expense and hassle of subscribing to the bureaus.

If a lender chooses not to report the information, there’s not much you can do.

Installment loans can help your credit scores, however. So if that’s your goal, you might consider getting an auto loan or a home equity loan from a lender that does report to all three major bureaus.

No TweetBacks yet. (Be the first to Tweet this post)