I have a car loan with Keypoint CU.
They used to update all three credit bureaus, and some point they stoped reporting to TU.
Now my TU report complains about this on negative item. And my score seems to be low compared to other two CB.
"Your credit report shows no recent non-mortgage loans (such as auto or student loans) or sufficient recent information about your loans. Having a loan along with other types of credit demonstrates that a person is able to manage a variety of credit types."
When I contacted Keypoint, they said they no longer report to TU, and If I need I need to talk to other two Credit Bureau and make some arrangements.
Can they even do this? I thought by law financial institutions are required to all three CB.
There is no law that any lender has to report to all 3 bureaus. They can report to 3, 2, 1, or none. My Blispay account only reports to EX, for example.
There's nothing you can do about this unfortunately. If the lender has decided to stop reporting to TU and your installment loan is not longer visible on that bureau as being an open loan, you're going to take the credit mix hit on TU which would result in a score drop likely between 10-30 points compared to the other 2 bureaus, depending on how far down you have that loan paid.
One thing you could do is look up the share secure loan technique. If you implement that, your TU score will go right back up, possibly higher than it was before if your auto loan isn't close to being paid off. What was the original balance of that auto loan and where does it currently sit now?
There is a distinction between reporting per se and updated reporting.
Any creditor can decide not to report to any given CRA.
However, once they do report, they have a statutory requirment to promptly update their reporting so as to maintain its current accuracy. FCRA 623(a)(2).
If they decide to delete the account, they are thereafter relieved of any updating obligation.
However, if account info requires update, they cannot simply cease to provide updates to the CRA.
When you say they are no longer updating, have they deleted the account?
So Robert, are you saying that if a creditor decides to stop reporting to a certain bureau they are required to delete that tradeline competely from that bureau?
The account no longer shows on the TU report. However, the following statment shows on the negetive items.
"You have no recent activity from a non-morgate installment loan".
Your credit report shows no recent non-mortgage loans (such as auto or student loans) or sufficient recent information about your loans. Having a loan along with other types of credit demonstrates that a person is able to manage a variety of credit types.
The only installment loan that I have is my car loan, and it used to be on the report before.
No, I am not saying that they must delete.
I am saying that if reported information requires update, they have a statutory requirment to do so. Thus, they cannot decide to cease updating if account information requires a correction unless they delete the account.
The dispute would then be their lack of required update, not their lack of deletion. The dispute could then be overcome by account deletion, which removes any issue of lack of accuracy.