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Credit Rating Agencies
By Jason Gluckman

Credit rating agencies (CRA) are financial service firms which assess the ability of a company or person to pay back a loan. It plays an important role in the efficient functioning of the national and international fixed income markets. The agencies offer an independent financial analysis about credit. The three largest credit rating agencies are Standard & Poor's, Moody's Investor Service, and Fitch Ratings.

Credit rating agencies vary significantly in their size, focus, and methodologies. Some of them focus on particular regions or industries. Some others provide services to firms including privately-held companies. They do not rate the credit risks of specific fixed-income securities. Some agencies offer subsidiary business services like risk management and consulting services.

Issuers, lenders, fixed-income investors, investment banks, broker-dealers, and government regulators use credit ratings for a variety of purposes. For investors, credit rating agencies enhance the range of investment options providing independent, easy-to-use measurements of relative credit risk. Issuers use these agencies for independent verification of their own credit-worthiness. Broker-dealers and investment banks also use credit rating agencies for calculating their own risk portfolios.

Credit rating agencies are employing more accounting professionals and seeking increased interaction with independent auditors. The reputations of these agencies provide a strong inspiration to maintain the reliability in the ratings. The credit rating agencies update their ratings at least yearly.

The other three major credit rating agencies in the United States are Experian, Equifax and TransUnion. They calculate their own FICO (Fair Isaac Credit Rating Score) scores that go by different trademark names and different versions. Each version tracks information independently creating a credit report. The reports contain full customer details and financial results.

A good credit score from a credit rating agency will allow you to qualify for lower-cost mortgages. Activities of credit rating agencies are public and all information on rating decision is available on the Internet.

Credit Rating provides detailed information on Credit Rating, Repair Credit Ratings, Free Credit Ratings, UK Credit Ratings and more. Credit Rating is affiliated with Bad Credit Repair

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Unscrupulous Agencies Hurt Public Image of Credit Repair Counseling
By Mike Martin

Once considered a positive step for people seeking to repair their credit, credit repair counseling has suffered from reports of deceptive actions by unscrupulous agencies. Credit counselors who have misled clients and abused the system have given credit counseling a bad name. Many experts now advice consumers to take control of their own credit repair process. They recommend against sharing personal financial information with a credit repair company, noting that this information may be misused in the future.

Most consumers do not understand that credit repair agencies can assist with debt reduction; they can do little to improve your current credit rating. A credit counselor is supposed to negotiate with your creditors to reduce your monthly payments and your total debt. You then make one monthly payment to the agency, which is supposed to forward the necessary funds to each of your creditors. If your credit counselor does not forward those payments, or sends them late, you will find yourself deeper in debt while your credit rating sinks even lower.

Some agencies have taken steps to make clients believe their credit rating is improving. A credit counseling agency might send a letter to a credit reporting agency disputing a negative trade-line, and demanding its removal until an investigation is completed. When the entry is deleted, the credit counselor sends the client the cleaned up report claiming success. Unfortunately, when no further information is forthcoming, the negative item will return, making any credit rating increase temporary.

If the information on your credit report is correct, no agency will be able to help you have it removed. Negative information stays on your report for 7 years; bankruptcy for 10. If you have concerns about the information on your credit reports, your best plan is to address those concerns directly with the credit reporting agency in question.

Despite the horror stories, there are some reputable credit counseling agencies out there. If you are considering a credit repair agency, do your research. Find one that is affiliated with national associations and has received positive reviews from other clients and independent reviewers. You can trust a reliable agency to work to remove negative items that are genuine errors from your credit report; anything more is unrealistic.

Michael Martin is a knowledge seeker and publisher of FinancialKnowledgeCenter.com. Here he provides more information on credit cards, credit counseling and Finding the Right Credit Repair Company that will engage your curiosity and stimulate your mind.

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