We are frequently asked the questions:
Will this hard money loan show up on my credit?
or
Do you report this loan on my credit?
In general, hard money lenders and private lenders do not report to the credit bureaus.
The three bureaus are:
Transunion
Equifax
Experian
Any organization, like banks and lenders, wishing to report customers’ payment records to the bureaus has to pay each bureau for the reporting.
As with any data service, the cost per report decreases with more reporting.
The cost per report or customer for a bank with one million customers is lower than a hard money lender with 50-200 customers.
Hard money loans are generally short-term loans of six to twelve months. With such a short
loan period, it is less important to report.
Essentially, hard money lenders and private lenders do not see the value in reporting, so most
do not.
We hope this helps answer your question…if not, please get in touch!
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