Some lenders don't report your good credit - Here's why.
Your credit report is supposed to show all your credit, good and bad. Unfortunately, not all lenders report your credit. Here are some possible reasons:
- They don't want to lose accounts to other lenders. The credit bureaus sell mailing lists to lenders for pre-approved offers. If your good credit is not in the credit bureau's files, you probably won't be on the mailing lists that target good credit risks.
- They are too small. The credit bureaus generally accept regular reporting of "good credit" in batches of a couple thousand or more accounts per month. Otherwise, reporting is a manual process, or the lender has to pay processing companies to have accounts batched with other institutions to meet the bureaus' minimums.
- There is no law that says they have to report your payment history.
Before taking out a loan, be sure to ask the lender if they report good credit to Experian, Equifax, and/or Trans Union. (Preferably, all three.) If not, go elsewhere, because this lender will be of no help to you in improving your credit and your credit score.
Be sure to check your credit report to see which of your current accounts are being reported, on which of the three bureaus. The 3-in-1 triple merge credit report is the best way to do so. If you have good accounts that are not being reported, be sure to ask the lender to report them.
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