By Stephanie Mojica
Overview
Credit bureaus have a number of rules regarding credit cards, whether for payment of phone or online consumer credit services or positive and negative credit reporting. The three major credit reporting agencies are Equifax, Experian and TransUnion. While creditors often report to all three, thus often helping create consumer credit reports with overlapping information, each credit bureau is independent.
Positive Credit Reporting
One of the benefits of a credit bureau for consumers is positive credit reporting. When you pay your bills on time, your credit card company reports that through an automated system. This helps increase your credit score, and makes your credit file favorable to potential lenders, landlords, and utility companies. One of the rules credit bureaus has regarding credit cards is they only report information they are given.
Negative Credit Reporting
The other side of positive credit reporting is that the same credit card company will report you in its automated updates if you are late or over the credit limit. This negatively affects your credit score. The longer the late payment cycle goes on, the less favorable you will be to potential lenders, landlords and utility companies. The negative items your credit card company can report to the credit reporting agencies are 30 days late, 60 days late, 90 days late, 120 days late, 150 days late, 180 days late, and charge-off. A charge-off is the worst rating your credit card company can give you, and means they consider the debt not collectible. However, this will not stop them from taking other measures to collect the money, which can further impact your credit report.
Collections
One of the most confusing rules credit bureaus have regarding credit cards deals with when collection agencies step into to try to collect a bad debt. Some people believe that the credit reporting agency should not reflect both the credit card company entry and the new collection entry. However, your past credit card experience, positive and negative, can be legally reflected on your credit report for seven to 10 years. Negative information usually falls off in seven years, while positive data remains for 10 years.
Lawsuits
If the collection agency or original credit card company sues you in court and wins, then the credit bureau can put a third entry on your report. Judgments are the result of a successful lawsuit when a credit card debt is not paid, and are a separate activity from both the original credit card company and the collection agency. This means a judge has deemed the debt a serious matter, and that it should legally be collected. A judgment is a public record, and part of your wages can be used to pay it.
Credit Report Orders
When you order your consumer credit report online or on the telephone--if you order more than one a year--a credit card payment is required. Credit bureaus are not willing to take the risk of electronic checks, and there really is no other way to quickly pay the $8 to $15 fee required to get your report. If you cannot pay by credit card or a debit card with a MasterCard or Visa logo, then the credit reporting agency will take a money order through the mail with a letter.
Credit Bureau Rules for Credit Cards by amazing-credit.com