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08-21-2012 12:57 PM
I am a newbie here, and I have a question, I just realized that an Installment (car loan my credit union) is not showing in my Eperian and Transunion credit report. It is only showing in my Equifax credit report. Do you think this is okay or I should make effort to make sure it also shows in TU and EX ? Thx
08-21-2012 01:19 PM
08-21-2012 04:53 PM
I agree I would call in to find out if they just report to certain bereaus, also how old is this loan?
Same here.. have you called to see if they only report to CB?
08-21-2012 07:40 PM
I just realized that an Installment (car loan my credit union) is not showing in my Eperian and Transunion credit report. It is only showing in my Equifax credit report. Do you think this is okay or I should make effort to make sure it also shows in TU and EX ? Thx
There is no law or regulation that requires lenders to report your account info to all three CRAs (credit reporting agencies). The CRAs charge subscription fees to their providers, so it costs money for lenders to submit loan info, etc. Most large banks, auto and mortgage lenders and credit card companies report to all three major credit bureaus. However, smaller lenders, such as community banks, credit unions and collection companies, only report to one CRA due to the extra cost. This is one reason your FICO scores can vary between all three major CRAs. This can sometimes work in your favor, but can be especially frustrating when you are trying to establish or repair credit because it can cause your credit report at times to be incomplete and your FICO scores can suffer as a result (in your case, because you aren't getting the benefit of a responsibly managed auto loan with TU and EX).
Whether it is ok that your auto loan is only reporting to EQ depends on your personal circumstances and FICO scores. In general I would say it's not ok and you should try to get your credit union to report to all three or take your business elsewhere to a lender that does. If you are establishing credit with them and eventually plan to get a mortgage and/or credit card too, they likely also will only report the account(s) to EQ. I think there are too many other outstanding and very competitive credit unions out there that report to all three CRAs to waste my time and money on one that only reports to one. I think it is a very short-sighted strategy that does a disservice to members.
Note that the FICO algorithm likes to see a mix of credit types (mortgage, installment and revolving). You only need one of each type to satisfy this factor (there are subtleties with revolving credit, but since we're dealing with an auto loan (installment), I won't go into them. Your credit union's failure to report to all three CRAs (credit reporting agencies) may be ok if you have another installment loan (second auto loan, student loan, personal loan?) and you have no interest in taking out other types of credit with them. But know that you are only getting credit for your auto loan with EQ -- no FICO points for the loan with EX and TU. Installment loans only improve your scores while they are open and reporting. If they don't report, you don't get FICO credit. To reiterate, I would absolutely encourage my credit union to report to all three, but in my experience they won't because of the extra cost. If they were going to, they would already be doing so. If I were you, I would look into refinancing with another lender that reports to all three CRAs.
For the future, it is a wise practice to always first ask if a lender reports to all three CRAs, before appying for credit. But know that this too is not foolproof. Before refinancing my fiance's auto loan with his credit union, I asked if they reported to all three CRAs and was told they did. Several months later, we discovered they were only reporting to EX (not TU nor EQ). Very frustrating!