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What is a Credit Rating?

Every piece of credit history information in your credit file is assigned a rating by the credit grantor.

The following is a brief explanation of the Codes used by the credit bureau.

There are three classifications used to help identify the account that is being rated. They are:

R-This stands for Revolving or open ended accounts such as a credit card or line of credit (you make a payment to your card but you can re-use the available limit)
I-This stands for Installment accounts or fixed number of payments (i.e.: car loan) You pay X amount of dollars each month for set amount of months.
O-This stands for Open accounts
RatingWhat it Means
R0Too new to rate; approved but not used
R1Pays (or paid) within 30 days of payment due date or not over one payment past due; paid as agreed
R2Pays (or paid) in more than 30 days from payment due date, but not more than 60 days, or not more than two payments past due
R3Pays (or paid) in more than 60 days from payment due date, but not more than 90 days, or not more than three payments past due
R4Pays (or paid) in more than 90 days from payment due date, but not more than 120 days, or four payments past due
R5Account is at least 120 days overdue, but is not yet rated "9" on its way to collection agency
R7Making regular payments through a special arrangement to settle your debts (Proposal)
R8Repossession (voluntary or involuntary return of merchandise)
R9Bad debt; placed for collection; moved without giving a new address; written off
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