Different Ratings of a consumer

Hi Krist

Welcome to the forums. Each and every individual has his or her own credit history in the credit file. This information in your credit history is given a rating by the credit grantor. "R??? rating is the most common rating and is frequently used. It signifies that the item of the consumer is using revolving credit. A person always paying on time will acquire the topmost code "R1" whereas a person whose account has been written off will be coded "R9" because he never paid the account.

Based on the various ratings, a person's financial worthiness is assessed by the organization granting loans.

Consumers may fall in the following categorized ratings depending upon their financial transactions.

R0 - A person may be rated R0 when he is too new to be rated. He has been approved but has not been used for rating.

R1 - An individual who pays the debts within 30 days of the payment due date or he is not having more than one payment past the due date falls in this category.

R2 - An individual who pays the debts within 30 days to 60 days after the payment due date or he is not having more than two payments past the due date falls in this category.

R3 - An individual who pays the debts within 60 days to 90 days after the payment due date or he is not having more than three payments past the due date falls in this category.

R4 - An individual who pays the debts within 90 days to 120 days after the payment due date or he is not having more than four payments past the due date falls in this category.

R5 - In this category, the account of an individual is at least 120 days overdue but is technically not rated the R9

R7 - People making regular payments through some special type of program to settle their debts fall in this category.

R8 - Repossessions fall in this category

R9 - All the accounts of an individual which have been termed as bad debts, placed in collections, or moved without giving a new address fall in this category.

Regards
Roxette