Credit Basics 101
What You Need To Know About Credit




Credit Rating Agencies

Nowadays a country's financial growth depends on how much its citizens invest and its annual expenses and profits.

Giving credit has always been in fashion, for it brings in good money to the potential lenders.

In the same way it allows consumers to have means to participate largely in the country's financial prosperity in this enormous money game. Discipline is of the utmost importance.

Credit bureaus maintain credit records and likewise credit rating agencies determine the appropriate rates according to which consumers and lenders work out their dealings.

Credit rates provided by credit rating agencies function as guidelines in such cases. The issuers are companies, cities, non-profit organizations, or national governments issuing debt-like securities that can be traded in a secondary market.

It is obvious that credit rates are never the same for everyone. They are set on the basis of risk-based pricing. Risk based pricing is a way of price differentiation based on the different expected costs of different borrowers, as set out in their credit rating.

There are more than a hundred credit rating agencies around the world. The top listed credit rating agencies that assign credit ratings for corporations include the following:

  • A. M. Best (U.S.)
  • Baycorp Advantage (Australia)
  • Dominion Bond Rating Service (Canada)
  • Fitch Ratings (U.S.)
  • Moody's (U.S.)
  • Standard & Poor's (U.S.)
  • Pacific Credit Rating (Peru)
  • Egan-Jones Ratings Company (U.S.)

Credit rating agencies are not spared from criticism for their inability to downgrade countries readily and also supporting unscrupulous company management.

 

 


Translate Page Into German Translate Page Into French Translate Page Into Italian Translate Page Into Portuguese Translate Page Into Spanish

More Articles

 

Search This Site


The exact step-by step formula used to delete negative items,
negotiate debts, and win with the credit game

                           

More Articles


How to Choose a Credit Card

... Credit cards have become a part of life for most people living in the western countries. It's becoming increasingly impossible to avoid them, especially for businessmen. So if it is the first time you... ... 


Credit Repair the Do-It-Yourself Way

Negative remarks on your credit report can cost serious money. You do not have to despair though, since it is never too late to become credit worthy again. However, always remember that credit repair... ... 


Credit Reference

... Credit is granted when an organization or an individual makes money enough to give its customers some of it to borrow. There are mainly two kinds of credit-
a) Home loans, or mortgages, and personal ... 



Credit repair service