What does Credit Bureau Ratings mean?
In one of our articles, we had mentioned about how to get your credit report. It is a simple process to request and receive this information. The debtor simply completes a form titled “Request to Obtain my Credit History Report”. If you require an copy of this form, please email us at Info@EdmontonDebtReducers.com and we will email you an form. The completed form can then be faxed or mailed to Equifax. The request will take approximately two weeks to process and it is free of charge. A quicker way is to obtain a credit report is to request this information online. There is a fee of approximately $15.00 to process an online request, and a credit card is necessary for this transaction.
When you look in the report against each credit you have opened, there will be an rating system mentioned. Our credit rating system is made up of a letter followed by a number for example R1, I1 etc. The letter indicates the type of credit and the number indicates the frequency of the repayment.
So what does the letter mean
(1) Letter: “R” – Revolving Account [credit that is granted with no end date]
(a typical example is a line of credit, credit cards, and credit with terms)
(2) Letter “O” – Open Account [payment required in full; e.g. some American Express credit cards]
(3) Letter “I” – Instalment Account [credit granted with a fixed number of payments]
(vehicle purchase loans, equipment leases and vehicle/personal loans for assets)
The number after the letter denoted the following
(a) Number: “0” Too new to rate; approved but not used.
(b) “1” Paid within 30 days of billing; consumer pays account as agreed.
(c) “2” Paid within 30-60 days, but not more than 60 days, or one payment past due.
(d) “3” Paid within 60-90 days, but not more than 90 days, or two payments past due.
(e) “4” Paid within 90-120 days, or three payments past due.
(f) “5” Account is at least 120 days overdue, but is not yet rated 9.
(g) “6” (Code 6 does not exist).
(h) “7” Making regular payments under a consolidation order or consumer proposal. ***
(i) “8” Repossession (indicated if it is a voluntary return of merchandise by the consumer).
(j) “9” Bad debt; placed for collection; skip or bankruptcy.
To summarize, if it shows R1, it means an revolving account which means the customer means the monthly payment required.
If you had any questions on your credit report, please email us info@edmontondebtreducers.com and we will be happy to answer.
