1. Industry Reporting Standards - Clarified which accounts must be reported a minimum of once per month
An industry standard for reporting consumer accounts will ensure the integrity and consistency of the credit information being reported.
2. Quick Reference Guides to Industry Standards - Added new reporting standards for Residential Rental Companies.
While all applicable fields within the Metro 2® Format should be reported, these guidelines provide specific values that apply to reporters of Residential Rental accounts. Refer to the Residential Rental Reporting module for additional details.
The short answer to this question is no. The Metro 2® Format cannot be used to fix your credit.
There has been a lot of information on the internet recently on "fixing" personal credit using the Metro 2® Format. You can find various videos claiming the Metro 2® Format can be used to "erase" negative credit from your credit reports. This is not accurate. No one promising to repair your credit can legally remove information if it’s both accurate and current.
If you have errors on your credit report, you can dispute them with the credit bureaus. You can also work with a credit repair company that can help you identify errors on your report and dispute them on your behalf.
The Metro 2® Format is a standard electronic data reporting format issued by the Consumer Data Industry Association (CDIA) used by data furnishers such as banks, credit unions, consumer credit card companies, retailers, and auto finance companies to report credit information to the credit bureaus. It is designed to help data contributors provide quality consumer credit data and comply with the Fair Credit Reporting Act (FCRA).
Some reporting standards for Point of Sale (POS) accounts have been updated under the Quick Reference Guide as of May 2022. You can reveiw this update at M2R Quick Ref POS
Equifax, Experian, and TransUnion have announced significant changes to how medical debt sent to collections will appear on consumers’ credit reports. The action will remove close to 70% of medical collection debt reporting tradelines from credit reports.
The following join statement was made by the companies’ CEOs:
“Medical collections debt often arises from unforeseen medical circumstances. These changes are another step we’re taking together to help people across the United States focus on their financial and personal wellbeing,” said Mark W. Begor, CEO Equifax; Brian Cassin, CEO Experian; and Chris Cartwright, CEO TransUnion. “As an industry we remain committed to helping drive fair and affordable access to credit for all consumers.”
Read the full announcement here, click here.
A tradeline is a term used by credit reporting agencies to describe credit accounts listed on a credit report. For each account reported by a business there is a separate tradeline. Each tradeline includes information about the creditor and their debt.
There are two main types of tradelines. Revolving tradelines like credit cards and lines of credit and installment tradelines or loans like mortgages, auto loans, student loans or personal loans.
Along with debt information each tradeline can include information such as;
This information is primarily used to calculate credit scores. A credit score is just one aspect of a potential customers creditworthiness. Lenders may also want to check the tradelines on an individuals credit report to get more information.
Checking on specific information on a tradeline can give a lender detailed information. For example, a lender might check to find out the length of time an account has been delinquent. They could also check if credit scores have dipped because of a high utilization rate which can help determine whether a potential customers is a credit risk by checking the balance versus the credit limit.
In order to report tradeline data to the credit bureaus you will need a data furnisher agreement with the credit bureau(s) you wish to report to. You will also need Metro 2® reporting software which is up-to-date with the Credit Reporting Resource Guide®, meets all credit reporting laws and regulations and is capable of accurately producing the Metro 2® format layout such as our M2R program.
CONSUMER DATA INDUSTRY ASSOCIATION®, CDIA®, the CREDIT REPORTING RESOURCE GUIDE®, and METRO 2® are registered trademarks or trademarks of the Consumer Data Industry Association in the United States and/or other countries. Neither M2 Reporter nor its products or services are affiliated with or endorsed by the Consumer Data Industry Association or CDIA.
Backing up your data in M2R is an important task that you should be doing on a regular basis.
Backing up your data in M2R allows you to restore your data in the event of data loss due to file corruption, hard drive issue, human error, etc.
M2R has an easy backup tool that allows you to back up all your important data in a few easy steps. Check out our tutorial here and set up your routine today.
CONSUMER DATA INDUSTRY ASSOCIATION RELEASES STUDY ON THE VALUE OF CREDIT REPORTING IN U.S. | CDIA (cdiaonline.org)
“This study highlights the value credit reports offer to consumers and the entire economy,” said CDIA President and CEO Francis Creighton. “It’s never been more important than right now to better understand how our credit reporting system empowers consumers to fairly engage in the economy. Our study takes a hard-look at how our most vulnerable populations can build credit and gain financial inclusivity. This is critical, fact-based information that policy makers, academics, non-profits and others can use when examining how to address important challenges facing America.”
It is important to share this information at a time when our economy faces unprecedented challenges. Many people are looking for answers to close the gap of inequality and improve financial inclusion. The benefits of the credit reporting system will be evident more than ever during the current economic recovery.
Read Full Release
According to a recent article from CDIA lack of rental payment information being reported to consumer reporting agencies, or not scored by lenders, or both is severely effecting renters access to the financial mainstream.
According to the CDIA article Next Mortgage News highlights this point in a recent story from Laurie Goodman. In this story Goodman says, “I think it’s a big omission that the version of credit scores that are used for mortgage origination includes no rental payment history.” The story points out the new versions of credit score models do try to incorporate rent payment history when it is available. But it is missing most of the time, as landlords don’t have to report this data and the credit bureaus don’t have access to a consumer’s bank account data, which would include rent payments.
Is your tenant rental company trying to fill this gap? M2 Reporter can help you with your Rental Reporting needs with our M2R or M2 Rental 1 programs. Have questions? Contact us today.
M2R can now process your tenant leasing accounts creating the Rental 1 format® for TransUnion. Just like our existing M2R software you will find user friendly data entry features and up-to-date codes, rules and formatting based on the latest reporting laws and regulations according to the TransUnion Rental 1 format®.
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