credit reporting agency


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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.

credit reporting agency (CRA)

An organization that maintains credit history information and sells reports and scores to authorized credit grantors. Regulated by the Federal Trade Commission under the requirements of the Fair Credit Reporting Act.

References in periodicals archive ?
Credit Reporting Agency advises consumers to stop using automatic responses if at all possible.
CL Verify UK[TM] is a fully licensed credit reporting agency as authorized by the UK Office of Fair Trading and provides an integrated suite of decision support solutions for evaluating UK consumer credit risk.
Regardless of which credit reporting agency you are dealing with, the process for correcting errors is always the same under the terms of the Fair Credit Reporting Act.
This agreement will offer over 120 of NCRA's credit reporting agency members an identity theft program that supports its customers by offering a fully managed recovery solution in response to the increasing epidemic of data breaches and identity theft related events throughout the United States.
This Company is a spinoff of the credit reporting agency Equifax.
Notices that address a consumer's "negative information" as reported to a credit reporting agency
Contact your creditors and the credit reporting agencies as soon as you spot something suspicious (you only need to call one credit reporting agency to place fraud alerts on all three reports).
When it comes to one of the simplest measures of protection, only three percent suggested that the customer contact a credit reporting agency.
The models assess credit risk by evaluating credit application and consumer credit reporting agency data and rank-ordering applicants by score.
Credit Manager pulls credit reports on potential borrowers from a lender's preferred credit reporting agency or agencies, and then analyzes and summarizes the credit data into a simple report from which lenders can determine credit-worthiness.
By streamlining the time-consuming tasks of obtaining, auditing and processing credit reporting agency information, ScoreNet will enable Providian to focus its resources and time on using that valuable information in improved customer management decisioning.