How to self-report to credit bureaus
There are multiple ways to help improve your credit scores. Paying down debt and only applying for credit that you need are two methods you may know about. But did you know that self-reporting certain data to credit bureaus may help raise your score as well?
Self-reporting your data isn’t a matter of calling the credit bureaus and telling them your payment history. You’ll likely have to work with a third-party service. But you can learn how to be proactive when it comes to reporting credit information to the bureaus.
What you’ll learn:
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Credit reports contain information about your credit accounts that lenders and other companies send to credit bureaus.
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Information that isn’t typically included in credit reports is sometimes referred to as alternative data.
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Examples of alternative data include rent, utility and cellphone payments.
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You may be able to send certain alternative data to credit bureaus using third-party payment reporting services.
- Self-reporting alternative data to credit bureaus might help improve your credit scores.
What information is reported to credit bureaus
Before you consider self-reporting, it may be helpful to know what’s already being reported to credit bureaus.
Your credit reports contain information that lenders and other companies send about your credit accounts, like student loans, mortgages, car loans and credit cards. And the information lenders send includes details about your credit history.
You can check your credit reports on AnnualCreditReport.com or by using CreditWise from Capital One. To know what payments are already being reported, look for the tradelines—or credit accounts—listed in your credit report. Tradelines contain information like the lender, the debt amount and whether payments are made on time. You’ll have a separate tradeline for each open credit account you have.
What does it mean to self-report to credit bureaus?
Self-reporting allows information that isn’t typically used in credit reports to be shared with credit bureaus. Also called alternative data, this information can provide the credit bureaus with additional insight for assessing your creditworthiness.
Keep in mind that the term self-reporting can be misleading because you can’t directly report information to the credit bureaus. Self-reporting typically means using third-party services to send information that isn’t already being reported to the credit bureaus.
What type of information can I self-report to credit bureaus?
Some examples of alternative data that could be shared with credit bureaus include:
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Rental payments
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Payments for utilities, such as electricity, water or gas
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Payments for cable television, streaming services or a cellphone
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Bank account history, including deposits, withdrawals and transfers
Advantages to self-reporting credit information
Self-reporting to credit bureaus can have several advantages. For example:
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It could help boost your credit scores. If they’re consistently on time and reported to the credit bureaus, bill payments could help build credit. That’s because payment history is an important credit-scoring factor.
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It can help those with thin credit files show creditworthiness. If you have few or no traditional credit accounts, reporting alternative data can help you establish credit history in your reports. And this can help demonstrate creditworthiness, letting lenders or other companies know you’re financially responsible.
- It could let you build credit history without taking on new debt. Some of the most common methods of building credit involve taking on debt with credit card accounts and/or loans, for instance. Self-reporting might allow you to improve your credit with other bills.
Potential disadvantages of self-reporting credit information
Before you decide to use a third-party reporting service, you may want to keep in mind:
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These services may only report certain information.
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Companies might charge for their services.
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Companies may not report to all three major credit bureaus.
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Even if your bill payments are in your credit reports, that won’t guarantee a boost to your credit scores.
Ways to add information to your credit reports
While you can’t report your payment history directly to credit bureaus, there are some ways to potentially get your information added:
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Work with your lender. For some types of accounts, like mortgages or auto loans, your lender might not be reporting them to the bureaus since it’s not required by law. But you may be able to work with them to get the information included.
- Research and sign up for third-party credit reporting services. To self-report alternative data like rent payments and utility bills, you’ll have to go through a third-party service. But be sure to do your research or talk to a professional before you sign up for any third-party services. It’s a good idea to make sure you know what information is being reported, which bureaus it’s being reported to and whether it will be used to affect your credit scores.
Key takeaways: Self-reporting credit
By using third-party services, you may be able to self-report payment information, such as rent or utility payments, that typically isn’t in your credit reports. Doing this might help improve your credit if you consistently make payments on time and in full. To see what payments are being reported, you can check the tradelines on your credit reports.
One way to do that is with CreditWise, a free tool that lets you access your TransUnion® credit report and VantageScore® 3.0 credit score. Using CreditWise won’t hurt your score and it’s free for everyone, not just Capital One cardholders.
