Are Credit Rating Agencies Profiting From Your Demise?

There has been a lot of talk recently about credit rating agencies, and their influence on your ability to access credit. Which side to these credit rating agencies take - or is it true that they are simply neutral organisations providing information to third parties?

After doing quite a bit of research on this topic, we are confident that we have the answer to this question. Remember, credit rating agencies make a lot of money each year from providing information to companies, lenders, banks, and other financial institutions. They also make money from providing you - the consumer - with copies of information on yourself.

When it comes to favouring a particular wing of society - we believe that it may be true that this unbiased nature is the prevalent attitude.

Why We Think That Credit Rating Agencies Are Neutral

Our belief that credit rating agencies are neutral organisations comes from a few points in particular that were uncovered during our research.

They are as follows:

• Credit Rating agencies are government regulated.
• They must not have an interest in lending.
• They are accountable to consumers as to their business activities.
• Each year, they are audited to ensure nil fraudulent activity.

For many consumers, the above four points will not be enough to convince them that indeed credit rating agencies are unbiased.

We predicted that this would be the case - and therefore would like to offer our own analysis and reasoning behind why these companies would be best recommended to choose no side of the fence.

Our Reasoning For Credit Rating Agencies

When it comes to credit rating agencies, the management and employees need to be very careful that they do not breach your privacy. Any breaches of your trust or personal information will be referred to government regulators, and therefore there are very strict policies inside these credit rating agencies which regulate the flow of information.

More often than not, information flows are electronic - meaning that staff don't physically get to see the results of any queries, additions, or subtraction is to your credit report - and therefore the information is kept under wraps most of the time.

If indeed someone is required to look at your information, the person is randomly chosen - and therefore no forward planning is possible - which ultimately reduces the risk of inside fraud and therefore results in an unbiased agency.