Author Topic: Interesting Behavior of Lenders Regarding Credit Reporting Agencies  (Read 632 times)

Rob L

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I have a relative that over the past year had to quit her job to provide full time care for her ailing husband, badly injured her back while doing so, and ultimately her husband passed way. The financial impact was a loss of about 50% of spendable income and naturally she began falling behind on everything from her mortgage to unsecured loans to revolving debt. I'm trying to help her out of the problem and have access to all her records. There's four debt accounts and she is behind four or more payments on most of them. The interesting part is that only one of the creditors has reported its account 60-89 days late and her Vantage 3.0 score remains "Fair" at 655 from Credit Karma. The reporting creditor is the one owed the least and their strategy is simple; pay me now or I will kill your credit score. In my simple mind that was the strategy of all creditors.

It had never occurred to me that it wasn't necessarily in the best interest of a creditor to promptly report non or late payments. Much better to wait and hope the debtor is able to get another loan since they might be able to seize some of that new money for themselves. I would not be the least surprised if my relative could get a loan from LC or Prosper today. She won't of course. More debt is the last thing she needs. This lender behavior is an entirely new insight for me. How naive!

Fred93

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Re: Interesting Behavior of Lenders Regarding Credit Reporting Agencies
« Reply #1 on: March 27, 2019, 09:29:11 AM »
I don't know which credit bureau the CreditKarma score uses.

Did you pull a credit report from all 3 bureaus?

lascott

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Re: Interesting Behavior of Lenders Regarding Credit Reporting Agencies
« Reply #2 on: March 27, 2019, 10:55:57 AM »
I don't know which credit bureau the CreditKarma score uses.
Did you pull a credit report from all 3 bureaus?

TU and EQ. I've been using them for a number of years. Like that they notify you if something changes.  I'm not their best customer because I don't get more CCs or home loans or personal loans via their affiliate links. :)

https://en.wikipedia.org/wiki/Comparison_of_free_credit_monitoring_services

Tools I use: (main) BlueVestment: https://www.bluevestment.com/app/pricing + https://www.interestradar.com/ , (others) Lending Robot referral link: https://www.lendingrobot.com/ref/scott473/  & Peercube referral code: DFVA9Y