Credit Rating

Shopping on line can be easy, simple and save you lots of money. It can also take a lot of your time, frustrate you, and result in unwanted purchases. Now the same can be said for regular high street shopping, but with the vast opportunity presented by the Internet it will pay you to spend a few minutes reading this and understanding how to better optimize your Credit Rating shopping experience:

1. Compare - without doubt the biggest advantage that the Credit Rating offers shoppers today is the ability to compare thousands of Credit Rating at a time. This is a great thing, but not necessarily all the time! Too much can be daunting at times so take advantage of the great comparison sites and where possible let them do the hard work for you.

2. Research - if it has been said it will be on the internet. Ignorance is no longer a justifiable reason for buying the wrong thing. Take the time to research in detail everything that you could possible want to know about

3. Testimonials - don't know anybody that has bought a Credit Rating? Wrong! If the Credit Rating is good the internet will let you know. Use the Internet as a friend and get testimonials before you buy.

4. Questions - Got a question about Credit Rating then search the Forums, FAQ's, Blogs etc. Don't be afraid to ask .....

5. Reputation - Never heard of the company selling Credit Rating? Don't worry, no reason why you should know every company in the world, but you know someone that does! Use the internet to find out what people are saying about Credit Rating and build up a picture of their reputation for sales, returns, customer service, delivery etc.

6. Returns - still worried that even after all of the above your Credit Rating wont be what you want? Check out the returns policy. There is so much competition now that someone, somewhere is bound to offer the terms that you are comfortable with.

7. Feedback - happy with your Credit Rating then let people know, after all you are depending on others people input in your buying decision, so why not give a little back.

8. Security - check for the yellow padlock on the Credit Rating site before you buy, and the s after http:/ /i.e. https:// = a secure site

9. Contact - got a question about Credit Rating, or want to leave a comment then check out the sites contact page. Reputable companies have them and respond.

10. Payment - ready to pay for your Credit Rating, then use your credit card or PayPal! Be aware of companies that don't accept them, there may be genuine reasons but given the huge amount of choice you have when buying online there is no reason at all not to buy via credit card or PayPal.

A credit rating assesses the credit worthiness of an individual, corporation, or even a country. Credit ratings are calculated from financial history and current assets and liabilities. Typically, a credit rating tells a lender or investor the probability of the subject being able to pay back a loan. However, in recent years, credit ratings have also been used to adjust insurance premiums, determine employment eligibility, and establish the amount of a utility or leasing deposit.

A poor credit rating indicates a high risk of Default (finance) on a loan, and thus leads to high interest rates, or the refusal of a loan by the creditor.

Personal credit ratings In countries such as the United States, an individual's credit history is compiled and maintained by companies called credit bureaus. In the United States, credit worthiness is usually determined through a statistical analysis of the available credit data. A common form of this analysis is a 3-digit credit score provided by independent financial service companies such as the FICO credit score. (The term, a registered trademark, comes from Fair Isaac Corporation, which pioneered the credit rating concept in the late 1950s.)

An individual's credit score, along with his or her Credit history, affects his or her ability to borrow money through financial institutions such as banks.

In Canada, the most common ratings are the North American Standard Account Ratings, also known as the "R" ratings, which have a range between R0 and R9. R0 refers to a new account; R1 refers to on-time payments; R9 refers to bad debt.

The factors which may influence a person's credit rating are: "Consumer information center FAQ", Equifax

ability to pay a loan
interest
amount of credit used
saving patterns
spending patterns

Corporate credit ratings The credit rating of a corporation is a financial indicator to potential investors of debt Security (finance) such as Bond (finance). These are assigned by credit rating agencies such as Standard & Poor's or Fitch Ratings and have letter designations such as AAA, B, CC.

Sovereign credit ratings A sovereign credit rating is the credit rating of a Sovereignty entity, i.e. a country. The sovereign credit rating indicates the risk level of the investing environment of a country and is used by investors looking to invest abroad.

Short term rating A short term rating is a probability factor of an individual going into default within a year. This is in contrast to long-term rating which is evaluated over a long timeframe.

Credit rating agencies Credit scores for individuals are assigned by credit bureaus (US; UK: credit reference agency). Credit ratings for corporations and sovereign debt are assigned by credit rating agencies.

In the United States, the main credit bureaus are Experian, Equifax, and TransUnion. A relatively new credit bureau in the US is Innovis.

In the United Kingdom, the main credit reference agencies for individuals are Experian, Equifax, and Callcredit.

In Canada, the main credit bureaus for individuals are Equifax, TransUnion and Northern Credit Bureaus/ Experian. "Student workbook", CIBC p. 14

The largest credit rating agencies (which tend to operate worldwide) are Moody's, Standard and Poor's and Fitch Ratings.

References

"Credit-Information Reporting: Why Free Speech Is Vital to Social Accountability and Consumer Opportunity" by Daniel Klein, The Independent Review