Credit Rating

Credit rating helps to determine a credit worthiness of an individual or a company. In order to calculate credit ratings, one has to look at the financial history and current assets as well as liabilities. Credit ratings inform a lender or investor about the ability of this individual or a company to pay back a loan. When the credit rating is poor, it affects the loan in a large extent. The result is high interest rates or even the refusal of a loan by the possible lender.

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Credit Ratings:

• R0
  You are too new to rate; approved but not used
• R1
  You pay within 30 days of billing, or you pay as agreed
• R2
  You pay in more than 30 days but less than 60 or one payment past due
• R3
  You pay in more than 60 days but less than 90 or two payments past due
• R4
  You pay in more than 90 days but less than 120 or three or more payments past due
• R5
  Account is at least 120 days past due but is not yet rated R9
• R6
  No rating exists
• R7
  You paid the debt through a consolidation order, consumer proposal or credit counseling debt management program
• R8
  Debt was cleared by selling the item, repossession
• R9
  You officially have a bad debt or placed for collection or bankruptcy

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Lenders can look at your credit report from any or all three major credit reporting agencies, and now you can too. Get the complete picture of your credit history from any of three nationwide credit reporting agencies delivered in a single, easy-to-read report that can help you negotiate with lenders.