United States Credit Rating
Did you know the United States of America has a credit rating? This is not to be confused with America’s average national credit score. The U.S. as a nation has an actual credit rating.
Almost every nation has a credit rating which indicates to investors the risk associated with investing in the country by exposing its debt. National agencies and official governing bodies determine a nation’s score.
So who or what has the power to determine these letter grades across the globe? Standard and Poor is one of three nationally recognized credit rating organizations. Standard and Poor is recognized by the U.S. Securities and Exchange Commission.
The United States is sitting on a letter grade credit rating of AAA otherwise known as “Prime” or “Top Notch” while carrying a debt in the trillions. Other countries with an AAA rating are: Norway, Denmark, England, Luxemburg, Canada, Netherlands, New Zealand, Singapore and Australia. There are more AAA scores around the globe too.
You may have noticed that news coverage of Greece explains financial disarray. In June Greece’s credit rating dropped from a B to a CCC which Standard and Poor calls the lowest level. Also in June Standard and Poor explained that the high U.S. score would drop to a D if the U.S. were to default. The United States congress has historically avoided default by raising its debt ceiling.
The debt ceiling is the limit on how much money the US federal government can owe. So far it has been raised 74 times since 1962 and 10 times since 2001 alone. Currently the U.S. has a debt ceiling of 14.294 trillion, meaning the national debt can not exceed this number. If the debt ceiling wasn’t raised the government wouldn’t be able to borrow money and predictability the government would shut down entirely, the dollar would crash and the reputation of the U.S would be destroyed inside and out.
Unfortunately none of this information is exactly comforting while we all struggle financially and try to find reasons to hope for a better future. However, it does show that debt is a part of how society functions on many levels and even globally. Keep this in mind when you look at your credit report and think it is hopeless. So many people think they shouldn’t even bother! But -Yes, there is a point to credit repair and Yes you can better your credit. You are not trillions of dollars in debt and there are options for you! Racking up more senseless debt is not the answer, putting up with high interest rates or remain high risk to borrowers is insanity!
With better credit you can choose debt wisely so that it works for you. You need credit help from professionals who understand how this nation operates and can give you a glass half full version of your credit. Don’t get discouraged – the entire world is building debt, everything revolves around money and borrowing and paying. However your credit is about you and only affects you! So you deserve to repair it.
- Understanding Credit:
