R1, R2, R9 and Other Terms in Your Credit Report
After ordering your credit report, you may find several credit terms that require an explanation. Here is a glossary in order to have a better understanding of your credit bureau:
R1: This is a revolving credit that always been paid on time.
R2: A revolving credit with a 30 days late payment.
R3: A revolving credit with a 60 days late payment.
R4: A revolving credit with a 90 days late payment. You may also find credit accounts gone to collection agencies showing R4 rating. At that stage, chances are that the company sold your account to a collection agency below its actual value (what you owe).
R5,R6,R7,R8: It is an aggravation of a R4. We rarely see them on the credit report. It usually jumps from R4 to R9.
R9: This is the worst credit rate an individual can have. This means that the account has been written off or closed by the grantor. However, the outstanding amount is still showing on the credit bureau.
It is important to note that the outstanding amount doesn’t matter. It is as bad to be late on a $20 dollar phone bill than a $200,000 mortgage.
I / R: Each credit account will show the mention “I” or “R” along with a number. This is to determine if it’s a revolving account or if it’s paid by installments. Revolving accounts are such as credit cards and lines of credit (pre-authorized limit) and installments are made on regular mortgages and persona loans.
I / J: Each credit account will also mention if they are Individual or Joint.
Beacon Score, Empirica Score and Fico Score: These numbers represent a global appreciation of your credit behaviour. This topic will be discussed further in another article.
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