Moody’s Credit Rating

Many people may not be familiar with the Moody’s credit rating system or even Moody’s the company itself.  The most prominent company in determining credit ratings is Fair Isaac, but Moody’s is also a player in the credit rating and financial market.

Moody’s provides more than just credit ratings.  They also give lenders extensive research tools and risk analysis when it comes to consumers and their credit worthiness.  They are a global company and employ over 3,000 people all over the world.

Moody’s credit ratings and research help investors analyze the credit risks associated with fixed-income securities. Such independent credit ratings and research also contribute to efficiencies in fixed-income markets and other obligations, such as insurance policies and derivative transactions, by providing credible and independent assessments of credit risk.

Moody's default studies validate their predictive ratings. Their published research and investor briefings draw thousands of attendees each year and keep investors current with the rationale underlying our credit opinions.

In addition to its ratings services, Moody's publishes investor oriented credit research, including in-depth research on major debt issuers, industry studies, special comments and credit opinion handbooks. While research, analysis and data are delivered through a number of channels, most of Moody's clients use www.moodys.com for access to such services in a real-time environment.

Customers who use the Moody’s credit rating service include a wide range of corporate and governmental issuers of securities as well as institutional investors, depositors, creditors, investment banks, commercial banks, and other financial intermediaries.

While your FICO credit rating is known as the industry standard, Moody’s is a company that provides much of the same services that FICO does including individual credit ratings as well as credit ratings of various companies and financial institutions.  They have been around almost as long as Fair Isaac and have been providing credit ratings along with other risk analysis tools for just as long.

Essentially, Moody’s credit rating service caters to businesses and corporations while FICO caters to individuals.  However, both are important in the financial world when it comes to determining credit worthiness.  Lenders put a lot of stock into the Moody credit rating and they are highly respected in the business world.

We often live on credit – that includes businesses as well.  Moody’s credit rating service helps to keep lenders safe when they are giving out money to various entities and they want to be sure they can provide the most accurate information as well as the most up-to-date information that is possible.

Loans for People with Bad Credit

Is it possible for people with bad credit to get loans in their name?  You’d think not, wouldn’t you?  After all, people with bad credit have a history of not paying off previous loans which makes them bad credit risks – right?  They’ve gotten into trouble with credit before and there’s no place out there that will loan them money with a bad credit history – right?  Well, that’s partially right.

Actually, it is possible for people with bad credit to get a loan.  They might not be able to always get it on their own, but there are options available to those with bad credit.  The terms may not be attractive, and it certainly might not be easy, but it is possible.

The first – and probably most viable option – for people with bad credit to obtain a loan is to find a co-signer for the loan.  The co-signer must be a person with a clean credit history.  Basically, when a co-signer secures a loan, you both appear on the loan as responsible parties.  The co-signer is essentially telling the lending company that they will make sure you make your payments and if you don’t, they will.

Having a co-signer on a loan is tricky business, however.  Usually a co-signer is a parent, loved one, or close friend.  If anything goes wrong, the relationship between the two of you could go horribly sour, so if you are asking someone to co-sign on a loan with you, you should either be sure you can make your payments or risk damaging the relationship you have with them.

People with bad credit might also be able to secure a loan in their name from a lending company, but they are most likely going to have to pay a higher interest rate than those who have good credit.  For example, a car loan for a person with good credit can be obtained with a loan that has a financing rate as low as 4 percent in some cases.  A person with bad credit might pay up to 12 percent for the same loan.  As you can imagine, that means higher payments on the loan for the person with bad credit.

A secured loan is another option for people with bad credit.  Essentially, a secured loan uses the property you are borrowing for as collateral against the loan.  If you don’t make the payments, the property is repossessed.  Secured loans for people with bad credit are generally given for a vehicle which means that non-payment means the car goes bye-bye.

The good news is that if people with bad credit are able to secure a loan, they can rebuild their credit with timely payments and non-default.  That puts them on the road toward financial stability and a favorable credit report.

How to Remove a Negative Credit Rating

Your credit rating is very important when you need to obtain credit for something important and if you have a negative on your credit report you will want to remove it as soon as possible.  Just one mistake can make a huge difference in your overall credit rating, so you will want to know how to go about removing that negative so your credit rating can rise.

The first thing you need to do is pull a copy of all three of your credit reports – one from each credit reporting bureau.  Then check out the information that is one each of those three reports.  If you do find an error, you need to take steps to have those errors corrected and removed.  Here’s how to remove a negative entry on your credit report to raise your credit rating

All three of the credit reporting companies have online forms that you can complete when you have a negative entry on your credit report.  Don’t use these forms.  It’s much easier to just gather your information proving that the negative is incorrect and write a letter to the credit bureau.  Documentation can be a receipt showing payment was made, a bill showing a negative balance, or a letter from the creditor saying that the bill has, indeed, been settled.

Then send your letter to the credit bureau via certified mail with a return receipt requested so you know the bureau did receive your letter.  They will review your information and notify you of their decision.  If it is in your favor, you will once again, need to get a copy of your credit report so you can verify that the negative has been removed.

If you have a negative credit rating right now, there’s no way that you can completely erase that negative.  What you can do, however, is take steps to raise it.  How do you remove a negative credit rating?  Please know that it will take time and effort on your part, but the first thing to do is to take steps to pay down your credit card debt and make any other payments on a timely basis.

You may want to look into a debt consolidation loan so that you pay off your old creditors.  The advantage to this is that you will be making just one payment to one company instead of multiple payments to multiple companies.  Plus, it will reflect positively on your credit report and show that you are taking steps toward removing your negative credit rating and trying to raise your credit score through smart financial practices.

There’s not much to know when it comes to knowing how to remove a negative credit rating.  It just takes time and common sense!

Help with Credit Card Debt Consolidation

Have you found yourself in trouble with credit card debt and want help with debt consolidation?  Then I have good news for you!  There are all sorts of places that can offer you help with your credit card debt through debt consolidation loans.  Sometimes when you are in deep with credit card debt, the best help you can is with a company who specializes in debt consolidation.

These companies will work with your creditors to negotiate lower payoff amounts than what you actually owe.  Then they will shop around for a debt consolidation loan that will pay off your creditors and allow you to make one monthly payment to the lending company rather than making several different payments to your individual creditors.

The help you can get through debt consolidation for your credit card debt as well as other debt can be invaluable because these debt consolidation companies have special training as well as contact with various creditors that can be of a great advantage to you.  With these contacts, they can help lower your monthly payments by having the credit card companies agree to a lower payoff amount as they know you will be getting a debt consolidation loan and they will be receiving their money – which they really like!

You can find many companies that help you with credit card debt through a consolidation loan.  You will want to make sure that you are dealing with a reputable company, however.  Do your research before you sign on the dotted line.  They should provide you with a detailed written copy of what they will be able to do for you and the rights that you have when you are working with them.

A debt consolidation company that is on the up and up will also advise you of your rights as a consumer and provide you with a way to “get out” of the contract if you are unsatisfied with their services.  They should also outline their fees and how you will pay those fees.

Another part of the help that a debt consolidation company can do for you when it comes to credit card debt is they can help keep you out of debt.  After you have obtained your debt consolidation loan and you are making regular, on-time payments, they will help devise a plan with you that will keep you from getting into trouble again and provide counseling services that you can use in the future.  It’s well worth the money you’ll spend if you seek help with credit card debt through a consolidation company.

Good Credit Rating Score

What does it take to get a good credit rating score?  Well, first it takes time.  Having good credit doesn’t happen overnight.  You’ll need to actually HAVE credit before you worry about a good credit rating score.  To do that, you may want to start out small with a department store or gas credit card.  These are relatively easy to get.  Once you have the card, charge some small items and then pay the bill off in full for several months. We must caution you here – don’t charge more than what you can pay off in full.  If you carry a balance, it won’t reflect well on your credit report.

Another way to get a good credit rating score is to have a co-signer on a large loan like a car loan.  The co-signer is basically guaranteeing that you will pay the loan and if you do, it will reflect very well on your credit report and raise your credit score.  You see, what you need to get a good credit rating score is a history of on-time payments and no abuse of credit.

What we mean by that is that you don’t want to apply for and get several different credit cards and charge items on all of them.  This just shows the credit companies that you are being irresponsible with your credit and have little financial finesse or know-how when it comes to managing money.

To get a good credit rating score, the most important thing to remember is to pay on time.  We can’t stress this enough.  Most companies that extend credit to you will allow you a grace period to make the payment.  For example, if your payment is due on the first of the month, they usually tell you late charges will occur if you pay after the 13th.  So essentially, you have between the 1st and the 13th to make your payment.  While this sounds great, if you wait until the 13th to make your payment, this really can reflect poorly on your credit report.  So if your bill is due on the 1st, pay it on the 29th, 30th, or 31st of the previous month just to be sure.

A great way to insure that you are making on-time payments is to have them deducted directly from your checking account.  This alone will contribute toward a good credit rating score because it shows fiscal responsibility.  Plus, it insures that your payments are made on time and you won’t miss any payments.  Of course, you’ll have to be sure there’s enough money in your account to cover the payments since credit bureaus also look at your checking accounts.

Getting and maintaining a good credit rating score is actually quite easy when you set your mind to it.

Getting a Cell Phone Contract with a Bad Credit Rating

If you have a bad credit rating you might think it’s impossible for you to obtain a new phone contract such as for a cell phone.  In some cases this is true, but more often than not, there are several options you can explore for a getting a phone contract with a bad credit rating.

First, you will want to check with the cell phone company and have them run your credit.  If you do have bad credit, they will most often come back and tell you that in order to get a phone contract; you will have to put down a deposit on the contract.  This shows good faith in that you are promising to pay the bill and if you don’t, you forfeit your deposit.  I’ve seen phone contract deposits as high as $1,000 depending on how bad the person’s credit is.  Most likely, it will be in the neighborhood of about $300, but be prepared.

The company may also offer you a pre-paid cell phone that is a month to month contract.  These plans are made especially for people with a bad credit rating and getting a cell phone contract like this can actually help to raise your credit rating if you make on-time payments and don’t get the phone cut off.

A third option in getting a cell phone with a bad credit rating doesn’t even involve a contract.  You can buy a phone at almost any retail outfit such as K-Mart, Wal-Mart, or Radio Shack.  Phones like this require you to also purchase minutes for the phone in order to use it.  If you run out of minutes, you just purchase more.  These phones work much like regular cell phones, but they may have restrictions such as with roaming and long distance, so you’ll want to thoroughly check out the options before you buy.

Our world is filled with cell phones today, so for many people, getting a cell phone contract with a bad credit rating can be a real headache.  The landline phone is quickly going the way of the dinosaur as more people turn to the convenience of cell phones for their communication needs.  When you have a bad credit rating, getting a cell phone contract is more difficult than for people who have better credit ratings, but getting one can be done.  You just have to take unconventional routes and try just a little bit harder.

Free Three Bureau Credit Report

There are three major credit reporting bureaus that can offer you a free credit report.  They are Experian, Equifax, and Transunion, and all can be found easily online.  These three bureaus provide credit reports to everyday consumers, but, unfortunately, you are only entitled to have one credit report for free.

In 2003, the Federal Government passed the FACT Act that allows for all Americans to have access to one free credit report each year.  That means that in order to get a credit report from the three bureaus, one of them will be free, and the other two you will have to pay for.

Why bother to get a credit report from all three bureaus when only one is free?  The answer is simple.  Businesses and creditors are not required to report to all three of the credit bureaus.  They are not legally required to report to any of them if they don’t want to.  However, most companies will report to at least one of the three credit bureaus.

If you are serious about either keeping good credit or improving your bad credit, you as a consumer should request first your free credit report and then buy the other two so that you have a credit report from all three credit bureaus.  The reason is given above.  You want to have a full and clear picture of where you stand when it comes to credit, so getting a credit report from all three bureaus is just a responsible thing to do.

Once you receive your free credit report from at least one of the three bureaus, you will want to take some time to go over it and make sure that the information is accurate.  Even one mistake on your credit report can make a difference in your overall credit score and could get you denied for a line of credit or a loan.

If you do find a mistake, you need to report it right away.  Usually, there will be a link on the websites where you can go to so you can at least alert them to the error.  After that, you will have to provide written documentation to them that the account is a mistake and they will review your request.  Once they decide, if it is indeed a mistake, it will be removed from your report immediately.

To recap, you can get one free credit report from any of the three bureaus in charge of credit reporting.  To get reports from the other two, you will be charged a small fee, but in the long run, it will be well worth the money to protect your credit.

Free Credit Report

On December 4, 2003, President George W. Bush signed into law the Fair and Accurate Credit Transactions (FACT) act that provide one free credit report to all citizens of the United States per year.  This came about as the result of a rise in identity theft and the need for citizens to able to view and monitor their credit reports to check for accuracy of information.

Now, all United States citizens are entitled to one free credit report each year from any one of the three credit reporting agencies:  Experian, Equifax, and TransUnion.  This one free credit report can be very valuable to the everyday consumer as it is used by most lending institutions and credit card companies to evaluate you and decided if you are a good credit risk.

There are various ways you can go about getting your free credit report.  You can go to any of the credit reporting agencies’ websites:  www.experian.com, www.equifax.com, or www.transunion.com.  There will be links there that can guide you through getting your free credit report.

Probably one of the easier ways, however, to go about it is to visit either of the following websites:  www.annualcreditreport.com or www.freecreditreport.com.  They will guide you through the process by asking a series of questions and asking personal things to help determine that you are who you say you are.  Within a few moments, your free credit report will appear on your computer screen and you will be able to save it to your computer and print it out so you can check for any mistakes.

Many people feel that the FACT act is one of the best pieces of legislation to come into effect in a long time.  Many years ago, the everyday consumer would have to pay money to see their credit report.  The information was almost held hostage unless that person wanted to “pay up”.  The FACT Act was written and passed to prevent this.

Legislators agreed that people should have access to information about them and that they deserved to be able to see what the credit reporting agencies have compiled about them.  So now, each and every American can get a free credit report each year.

We urge you to get your free credit report right now if you haven’t already.  It is how lending companies decide if you can get a car loan, a home loan, or a line of credit.  For many Americans, this is very important.  So, go get your free credit report and stay on the road toward having a clean credit record.