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Credit Rating Agencies vs. Credit Bureaus It's easy to mix up credit bureaus and credit rating agencies, especially since they are also called credit reporting agencies. But credit rating agencies don't work with people; they only work with companies and corporations. They came about because investors needed a way to compare the risk and rewards of different investments and to find out how financially stable a company was before it issued bonds or preferred stocks. Fitch Ratings, Moody's, and S&P Global are the three biggest credit rating agencies. These agencies look into a company's finances, analyze them, and give the company a corporate credit rating based on what they find. These ratings are different from credit reports or credit scores because they are meant to tell investors about companies and the people who issue debt-based investments. The agencies also rate the companies' debt obligations, fixed-income securities, and insurance companies to see if they are financially stable. Credit ratings, like AAA or CCC, are given in the form of letters so that investors can quickly look at a debt instrument and figure out how risky it is. The ratings from the three leading agencies are different, so it's essential to know which one gave the letter. Credit ratings are based on a considerable number of factors, including information about the market, estimates of the past, and information about the firm itself. In addition, assessments can look at things like a business's assets or investments, which are all meant to show how likely a borrower will pay back the loan. To understand how credit agencies, work for businesses, let's take a moment to look into credit agencies for personal credit scores. The Three Big Credit Agencies The three big credit bureaus for businesses are Equifax, Experian, and Dun & Bradstreet. This group is the leader in the credit market when it comes to collecting, analyzing, and sharing information about businesses. Credit bureaus put together credit reports and credit scores for each borrower, primarily for lenders and governments. They deal with how creditworthy a business is. Here are some things to note; 1. Credit bureaus put together and look over businesses' credit reports, which are used to figure out credit scores. They affect how much of a loan you can get, how much interest you pay on a loan or credit card, and sometimes even your ability to rent a place. 2. FICO Scores are used to calculate the credit score for small businesses, called the FICO SBSS Score. 3. All three credit bureaus collect the same kind of information. It also shows business debts, how they paid for them, and what they did with the credit. Credit bureaus often get information from federal and private lenders. 4. Each credit bureau makes credit reports and credit scores for businesses based on the information they have about them. The lower a business risk is seen to be, and the higher credit worthiness, the higher the credit score.