When sending collection letters is not enough, can a business owner report a debt to the credit bureau?
Do they have to wait until the bill is past due over 120 days?
What can the collector or credit manager expect once this action is taken?
Yes, you can report a debt to the credit bureaus. You have to be a member of a credit bureau or all three. To join a credit bureau visit their website and request information on becoming a member. The 3 credit bureaus are: Equifax, Experian and TransUnion.
You can report a debt as soon as it is past due, if you are a creditor. The best way to use this to your advantage is to send a letter to the customer telling them that if you don't receive payment the debt will be reported to the credit bureau. Sometimes this will prompt someone to pay. If they do not pay and you report the debt, send them a letter telling them it has been reported. Normally you won't see anything happen until they apply for credit somewhere, and your item is on there. Then they or the place that they are trying to obtain credit will contact you to pay the bill or see if it has been paid. Sometimes they may never apply for credit, but that is how you will get paid.
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