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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:

Credit Rating:

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.

Other Terms:

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.

Order your credit bureau now and Receive Complimentary Credit-Reports And Scores

6 Comments

Women’s Suffrage and Financial Freedom | Ask Mr Credit Card's Blog  on October 18th, 2008

[...] The Credit Toolbox gives a simple and readable explanation of R1, R2, R9 and Other Terms in Your Credit Report. [...]

Women’s Suffrage and Financial Freedom | Credit Card Help  on October 18th, 2008

[...] The Credit Toolbox gives a simple and readable explanation of R1, R2, R9 and Other Terms in Your Credit Report. [...]

Economics and Credit Card Debt - Women’s Suffrage and Financial Freedom  on October 18th, 2008

[...] The Credit Toolbox gives a simple and readable explanation of R1, R2, R9 and Other Terms in Your Credit Report. [...]

Women’s Suffrage and Financial Freedom | Credit Cards: How to get out of debt  on October 19th, 2008

[...] The Credit Toolbox gives a simple and readable explanation of R1, R2, R9 and Other Terms in Your Credit Report. [...]

Women’s Suffrage and Financial Freedom | Credit Card Information  on October 19th, 2008

[...] The Credit Toolbox gives a simple and readable explanation of R1, R2, R9 and Other Terms in Your Credit Report. [...]

TheCreditToolBox.com » Blog Archive » Don’t Engage Dispute About Unpaid Bills  on December 19th, 2008

[...] beacon score was in the 500 and he was currently R4 on one of his bill. In fact, this credit account was sent to a collection agency for a while. I [...]

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