A person’s credit rating is a direct reflection of how much debt he or she has, versus how reliably they can pay it off. Loans are one of the biggest things that can affect a person’s credit score, and as such it’s important for the lender to report to the major credit agencies so that a person’s payment history can be kept fully up to date. In the world of online loans however, it may sometimes seem like a very complex process for every lender to keep credit bureaus up to date. It is, but that doesn’t mean it doesn’t get done all the same.
Opening Accounts With The Three Major Credit Bureaus
The first thing that an online lender does is open an account with each of the three major credit bureaus. This account allows them to report when new loans are given out, when payments are made and, more importantly, when they aren’t paid. Reporting is a simple matter of logging into the site, and filling out forms online. Though it is still possible in many circumstances to fill out hard copy documents and requests, many different types of reports can be filled out and filed in seconds using the Internet.
Speed in Reporting?
On the one hand, the ability to report credit and loan changes quickly is a major boon, both to the credit bureaus and to the people who rely on their credit score. However, simply because online lenders, as well as banks, landlords and others, can all put a report through quickly, that doesn’t mean that the public at large should just trust that their credit scores are correct. Often times there can be mistakes and problems with credit reporting, which is why it’s important for everyone to keep an eye on what their score actually says.
While it can be hard to stay on top of one’s credit score, especially since getting a credit report for free is a tricky endeavor for most people, it is worth the effort. However, it is also important for people to remember that it can take time for payments to go through and for the reports to be updated. Only after an appropriate amount of time has gone through should someone expect to see a change on his or her credit report. Just because online lenders can fill out the forms at lightning speed, that doesn’t mean that the report gets updated the same way.