What is the credit rating service?

The Rating Service is a financial service that collects financial information on individuals and organizations and analyzes it to provide the evaluation of the credit struggle of those to which the data is collected. In the United States, the credit service generally focuses on businesses or individuals. Most companies that expand the loan, whether for individual consumers, companies or other organizations, are expanding when deciding to expand the loan.

There are three consumer loans in the US: Experian, Trans and Equifax. Every rating rating service keeps files on almost all Americans who have any history of use or loan applications at all. It is rare that the American will not have a set maintained by each of these three companies, because any loan application will generally provoke a loan report from one (or more) companies. If such a request is received for consumers for whom there is no file, the credit rating will automatically startone.

In addition to collecting data, the credit service will analyze and evaluate the data to give creditors and potential creditors a reliable indicator of the consumer's credit benefits. In the US, each uses patterns based on the fair model of ISAAC credit risks to create a rating or score that is included in the credit message. In many cases, the creditors will create their decision almost exclusively on the score itself, which is essential for the data used to create the score is accurate.

Consumers are advised to carry out their own DUE diligence by monitoring credit reports of them on them each of the three consumer credit services. The US law is now providing that credit services must provide free copies of their credit reports annually to consumers who apply. Consumers can question all inaccurate data listed in their messages.

participationThe company, governments and other organizations that are looking for credit are also evaluated by special financial services, the most famous are standard and Poor's, Moody's, Dun and Bradstreet and A.M. Best. Some of these commercially oriented credit services focus on specific industries; MORNING. For example, the best is published by comprehensive financial reports, including scores, on insurance companies.

While services provided by rating agencies have benefited both creditors and consumers, some problems arose. One of the more controversial problems is the difficulty of successfully questioning the inaccurate information found in the consumer loan set; Another is the abuse of a system committed by these intentions in the Committee of Credit Scam and Identity Theft.

In addition, there is no real standard for reporting rating agencies from creditors. Some creditors report all consumer activities, including in time, and laterPayments, while some creditors will only report late payments. In general, the third group of creditors will not exhibit positive or unfavorable information, using the threat of unfavorable message to convince the consumer to pay the account, and then make an unfavorable message only if the consumer does not apply.