Mar
31
2011

How soon banks report new accounts

Dear Experian,

How soon do banks have to report new credit loans to the reporting agencies?

- MLC

 

Dear MLC,

Actually, banks don’t have to report the information at all. The national credit reporting system is voluntary.

The Fair Credit Reporting Act doesn’t require lenders to report, but it very strictly regulates what they must do if they choose to report. Most lenders choose to report information because participating in the credit reporting process helps facilitate lending and reduces their lending risk.

Accounts typically are reported at the end of the first billing cycle, when you make your first payment.

Once an account is reported, the lender must update the information regularly, must respond to disputes regarding the information’s accuracy and must comply with a number of other regulations and security requirements while the account is open and active.

Thanks for asking.

- The “Ask Experian” team

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