Checking Credit
Most people understand the importance of checking their credit, but some may not completely understand why. It is important for individuals to keep an eye on their credit score so they will not be hit with any surprises once it is time to purchase something that requires a good credit report. One of the most reliable ways to check a credit score is by using the Annual Credit Report Request. There are also other options when it comes to checking credit in the form of credit monitoring. This will allow an individual to catch potential acts of identity theft and other errors that may arise quickly, so they can have them corrected before they need to use their credit. If an error is found, then an individual will need to contact the three major credit bureaus about the inconsistency. This can be done by writing a letter and mailing it by certified mail along with any supporting documents. If the claim changes a person’s credit score he or she, may receive an additional free credit report with their accurate credit rating.
It is important to remember that the United States federal law not only allows but encourages everyone to check their credit with a free credit report once per year. This type of request can either be conducted over the phone or electronically. If an individual is attempting to get their credit rating electronically, it is important to avoid scams. Unfortunately, offers that are in the form of emails or pop-up ads are usually scams, along with any websites that require a credit card number for a free credit report.
Bond Credit
Individuals are not the only entities that have credit reports. Corporations have bond credit ratings as well, which is essentially their credit rating. Reviewing a bond credit report is one of the ways that investors, considering debt securities from both domestic and foreign companies, assess the risks involved. This type of rating, which are more widely known as corporate credit ratings, can be assigned to both long and short-term obligations as well as loans, insurance companies, securities, and preferred stock. Usually, long-term credit ratings will indicate whether a company will pay its debt.
There are three major entities that will provide rating systems for companies; Standard and Poor’s, Fitch IBCA, and Moody’s. This rating will aide investors in determining the level of risk involved with their investments choices. The ratings will range from a high quality credit score to a default or junk rating. If an investor would like to translate the rating themselves, the triple A rating is the best quality credit score possible, while a C or D score is considered junk. Fitch ICBA uses a slightly different scale that the AA rating would be a high credit rating, triple B is equal to good credit, and triple A is still the best possible credit score. With Fitch ICBA, anything lower than a triple B is considered junk. If an investor is using Standard and Poor’s rating system, then D is considered the worst possible score.
A sovereign credit rating is the type of credit score that is issued to countries and their capability to provide a stable investment environment for investors. There are numerous factors reflected in a sovereign credit rating including, private investment, foreign currency reserves, economic status, and political stability. These aspects are usually the first thing institution investor’s research when considering investing abroad. Investors are not the only ones who look at credit scores in this arena, entities searching for investors will also use this to find additional funding. Investment grade reports will generate interest for a country or company, which will make it desirable for foreign investors. A high credit rating will also aide emerging market economies, which shows how safe their foreign investors’ funds really are. Today, credit ratings will facilitate investments as both companies and nations attempt to improve their credit ratings.
If you want to learn more, consult with the experts at CL King and Associates.
CL King provides investment banking, equity research, sales and trading, and investor services to corporations and institutions. The firm also co-manages bond offerings, IPOs, follow-ons, secondaries, convertibles, and preferred.
If you want to learn more, please visit here: http://www.clking.com/