Reporting Contract for Deed Payments to Credit Bureaus

Chad Banken
Chad Banken
Published on October 1, 2023

A common question from homebuyers in a contract for deed arrangement is whether their payments are reported to credit bureaus. Understanding how these payments impact your credit report is crucial for future financial planning, especially when considering a mortgage.

Our Role as Non-Lenders As the party facilitating a contract for deed, we operate differently from traditional lenders. We do not report to credit bureaus directly because we are not classified as a lender. This distinction is important in understanding how your contract for deed payments are recorded and recognized in the context of credit reporting.

Third-Party Providers and Credit Reporting For those interested in having their contract for deed payments reflected on their credit report, there are third-party services available. These providers can assist in reporting your payment history to credit bureaus for a small fee. This service can be valuable for building or improving your credit history over time.

Contract Payments and ACH All payments under our contract for deed are made via Automated Clearing House (ACH), ensuring a secure and traceable method of transaction. This electronic payment system not only adds convenience but also provides a reliable record of your payment history.

Confirming Payment History to Mortgage Lenders When the time comes to transition from a contract for deed to a traditional mortgage, the recorded history of your ACH payments can be a valuable asset. We can confirm your consistent payment history to your eventual mortgage lender, demonstrating your reliability as a borrower.

If you’re currently in a contract for deed or considering one, and wish to ensure your payments positively impact your credit history, exploring third-party credit reporting services might be a beneficial step.

For more information about how contract for deed payments can be reported to credit bureaus, or for guidance in navigating these options, feel free to reach out to us at A Good Deed. We’re here to support you in making the most out of your contract for deed experience.

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