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North American Standard Account Ratings
The "R" Ratings
R0 to R9 Explained
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Every piece of credit history information in a credit file is assigned a rating by the credit grantor. The most common ratings are "R" Ratings.
These are known as North American Standard Account Ratings and are the most frequently used. The "R" indicates that the item being described involves revolving credit. If you always pay on time, it will be coded an R1. If an amount was written off because you never paid it back, it is coded R9. The R ratings are a coding system that translates "on time", "one month late", "two months late", etc., into two-digit codes on the credit inquiry.
What is an "inquiry"?
An "inquiry" shows the name of the company or individual who has requested
your credit file. Each inquiry is listed on the credit file so that you know
who has obtained a copy of it. In addition to checking your file when you
first apply for credit, credit grantors typically request regular updates of
your credit file after an account has been opened, when it is being renewed
or for limit increases. These are listed as "update" inquiries in a separate
section of your credit file. They are for your information only and are not
displayed to other credit grantors.
Does my file tell me how I will be rated?
Your file will not tell you how an individual credit grantor will evaluate
you as a potential customer. Each credit grantor has its own policies for
making decisions about individual customers.
| Rating |
Meaning of Credit Score |
| R0 | Too new to rate [approved but not used] |
| R1 | Pays (or paid) within 30 days of payment due date or not over one payment past due. |
| R2 | Pays (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. |
| R3 | Pays (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. |
| R4 | Pays (or paid) in more than 90 days from payment due date, but not more than 120 days, or four payments past due. |
| R5 | Account is at least 120 days overdue, but is not yet rated "9". |
| R7 | Making regular payments through a special arrangement to settle debts. |
| R8 | Repossession (voluntary or involuntary return of merchandise) |
| R9 | Bad debt; placed for collection; moved without giving a new address. |
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Note Other rating indicators that might be found on a report are "I" for installment credit or "O" for open credit line. |
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Correcting inaccuracies in my credit file relating to a high 'R' rating
First you will need to complete a Consumer Credit Report Update Form. Once complete begin by contacting the reporting agency by telephone regular mail or email.
After they receive your call, letter or e-mail request, they begin a Dispute Resolution Process.
First, they review and consider the information you have sent about your dispute. If the initial review does not resolve the problem it will be investigated further. This involves contacting the submitter of the disputed information on your behalf to review the details. The submitter will investigate and report their conclusions to the reporting agency. Based on the findings changes may be made to the credit file. However, if the disputed information is correct no changes will be made to the file.
You will be sent a revised credit report if changes are made as a result of the Dispute Resolution process.
A revised credit file will also be sent
automatically to any company that requested your credit file 60 days prior
to the change. In some cases, it may be a period longer than 60 days.
Last Updated:
19-Mar-2006
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