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 ?
FactorTrust is a leading Credit Reporting Agency and provider of consumer risk management and identity verification services for Alternative Financial Services providers serving the under-banked consumer market.
We are excited to bring this identity theft solution to NCRA and its credit reporting agency members," said Scott Smith, President of NXG Strategies.
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.
50 -- the price consumers pay if they buy it directly from a credit reporting agency -- to $65.
LiquidCredit offers a Web-based decision engine, credit reporting agency interface, associated transaction management tools and the ability for businesses to design their own decision criteria and strategies, all delivered in a netsourced mode.
But now, credit reporting agency Experian has begun including apartment rental history in its database.
The board also approved rules that clarify what information credit unions must disclose to credit reporting agencies and gave consumers the right to challenge an item on the report directly with a creditor rather than having to go through the credit reporting agency.
New Hampshire consumers are consistently good at making payments on time, according to a report by credit reporting agency Trans Union.