What factors determine a credit rating?

Generally speaking, credit ratings are a function of the following factors: High-Profit Margins (e.g. Gross Profit Margin, Operating Margin, EBITDA Margin, Net Profit Margin) Industry Position (i.e. Strong Market Leadership + Market Share vs. Disruptor)

What are the benefits of having a good credit rating?

Maintaining a good credit rating can improve your likelihood of banks and lenders approving you for financing. A poor credit rating may show that you're unable to repay debt and limit your financing options. A credit rating is a major factor when deciding whether a borrower receives the loan they're applying for.

What is a good credit rating?

For FICO, a good credit score is 670 or higher; a score above 800 is considered exceptional. For VantageScore 3.0, a good score is 661 or higher, and a score of 781 to 850 is excellent. On the flip side, FICO scores below 670 fall into the fair and poor range, while VantageScore 3.0 scores below 660 are considered fair, poor, or very poor.

What is the difference between a credit rating agency and a credit bureau?

Credit rating agencies are different from credit reporting bureaus. Credit ratings assess a company or country’s ability to repay a loan, while credit reporting determines an individual’s credit score. What Are Credit Bureaus? Credit bureaus compile credit reports and credit scores about individual borrowers primarily for governments and lenders.