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A credit rating estimates the credit worthiness of an individual, corporation, or even a country. It is an evaluation made by credit bureaus of a borrower’s overall credit history. A credit rating is also known as an evaluation of a potential borrower's ability to repay debt, prepared by a credit bureau at the request of the lender Black's Law Dictionary. 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 defaulting on a loan, and thus leads to high interest rates, or the refusal of a loan by the creditor. Personal credit ratingsAn individual's credit score, along with his or her credit report, affects his or her ability to borrow money through financial institutions such as banks. The factors which may influence a person's credit rating are:
In different parts of the world different personal credit rating systems exist. From Wikipedia under the
GNU Free Documentation License  howtoeducation.com 125px x 84px | 16.50kB [source page] The Secret Of Boosting Your Credit Rating Product Information  infinitecredit.com 351px x 468px | 10.90kB [source page] Having a low credit rating and credit score can have a devastating effect on your chances of being successful when you apply for credit Your credit rating is what a lender will take into account whenever you apply for credit and if you don t score high From Yahoo Image Search: "Credit rating"  insuranceclaimsbadfaith.typepad.com Dennis Wall Wed, 02 Sep 2009 10:15:56 GM The collapse of Bond Insurance Companies has taken away what was viewed as a form of Risk Management for Municipal Bonds. This collapse has taken place at the same time that the Munis Market faces an astonishing lack of . ratings. ...  fin-rus.com unknown hu, 10 Sep 2009 17:01:00 GM International . rating. agency Standard & Poor's has lowered its long-term corporate . credit rating. and senior unsecured debt . rating. on Russian giant Evraz to B+ from BB-, placing the metal maker on CreditWatch with a downgrade option, ...  business24-7.ae Insead Knowledge Wed, 26 Aug 2009 00:00:00 GM Investors tend to take . credit ratings. at face value and rely on them too heavily. So says ESSEC Economics Professor Patricia Langohr, who with her father, Insead Finance and Banking Professor Herwig Langohr, has written a book called ... From Google Blog Search: "Credit rating"  news.google.com Reuters Blogs (blog) It's time to start asking the big credit rating agencies just when they realized that American International Group might pose a systemic risk to the global ... and more » news.google.com Kansas City Star That makes Missouri one of only seven states and the only one in the Midwest to achieve AAA status from all three major credit - rating ... Bonds... Triple A bonds. Mukilteo Beacon all 7 news articles » news.google.com National Business Review Prime Minister John Key has taken a swipe at credit rating agency Fitch for putting New Zealand on negative watch now the latest economic data was brighter. ... Fitch urged to think again Newstalk ZB all 315 news articles » From Google News Search: "Credit rating" How can I get a business credit card despite bad credit rating in Canada? Q. Help! I'm trying to start up a business and all I need is a $10k business credit card. But I have a bad credit rating and so far lenders insist I must have a strong co-signer. But I can't get anyone to do this for me (long story) Any suggestions? In answer to the first responder, it's a self-employed business. I'm the only employee. It's a long story but my personal financial mess is a combination of the high tech collapse (I'm an engineer) that has gone on 6 years, 3.5 years unemployed for myself. Plus, I have a medical condition. I finally made a bold move to get around the medical condition so I can start my own business, now all that is stopping me is a co-signer. I agree, it's not an enviable position but I have no other choice. Is… [cont.] Asked by almcneilcan - Fri Mar 16 16:22:48 2007 - - 1 Answers - 0 Comments A. Actually, it's a short story. No one else wants to stick their neck out (co-signing) to cover your debts after you have shown little ability to handle your own affairs. They will be 100% financially responsible if you default on your debts and they know it. Operating a business is like operating your own financial affairs on steriods. Who in their right mind would start a business on credit card with up to 32% anual interest? That is a very large nut to crack on top of paying for employees,your wages, materials, rent,phone and lights... then look for making a profit too??? Tell me what kind of business you are going into that has a 32% profit after all expenses and I will start one in a heartbeat (as long as it is legal to do so) Maybe… [cont.] Answered by Rx_Mich - Fri Mar 16 16:36:43 2007 Is it possible to buy credit to boost up your credit rating? Q. I'm wanting to start my own business but I need to take out a loan for 100,000 GBP but my credit rating is poor. A friend told me to go to my bank and buy the credit needed to take out this loan. Is this possible? Asked by Sam - Mon Sep 7 03:48:51 2009 - - 5 Answers - 0 Comments A. Yes you can if you have the cash, there is nothing wrong with it. Buy a CD (Certificate of deposit) and use it as collateral to secure the loan, you'll get a low APR and the bank will pay you some interest on the CD. The typical deal is a loan to 5% APR and you get a return from he CD of 1.5 to %2 so the whole thing cost you 3 to 3.5 in interest. If you credit is poor is probably because there is negative information listed on your credit report, if that is the case this loan will not help you much to improve it, you'll need to take care of those negatives before doing anything else Answered by carl.bennet - Mon Sep 7 09:07:52 2009 How long for my credit rating to get better?
Q. I had high balances on my credit cards, and missed a few payments while I was laid off. Now that I am working again and making my payments how long will it take my credit rating to go up again? Asked by SteelerNation - Wed May 20 18:29:18 2009 - - 2 Answers - 0 Comments A. It will go back up a lot slower than it came down. What's done is done nothing can change that. Generally if your accounts are up to date for two years your score will be higher. Answered by Bedford S - Wed May 20 20:34:10 2009 From Yahoo Answer Search: "Credit rating" See also:
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KnowledgePlex - A credit counselor checklist