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Credit Rating Agency
(redirected from Credit reporting)

   Also found in: Wikipedia 0.02 sec.
Credit Rating Agency
A company that provides investors with assessments of an investment's risk. The issuers of investments, especially debt securities, pay credit rating agencies to provide them with ratings. A high rating indicates low risk and may therefore encourage investors to buy a security. Additionally, banks may only invest in securities with a high rating from two or more credit rating agencies. The SEC recognizes 10 firms as credit rating agencies; Fitch, S&P, and Moody's are the three most prominent. However, the methods of credit ratings agencies have been subject to criticism. For example, most agencies gave high-risk mortgage-backed securities top ratings until they defaulted at the collapse of the housing bubble.


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Most Americans want to believe the credit reporting system works; that people earn their bad credit and there is nothing they can do about it but wait for seven years.
Ordering a credit report can be easily done and accessible to everyone, since at least one free report can be obtained by the consumer each year; this rule is also included under the FCRA or Fair Credit Reporting Act.
Pull your credit report from the three major credit reporting bureaus.
 
 
 
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