Home arrow Glossary of Terms
Bankruptcy / Proposal / Financial Glossary
You can always search for entries (regexp permitted).

Begins with Contains Exactly matches

Submit Term

All | A | B | C | D | E | F | G | H | I | J | L | M | N | O | P | Q | R | S | T | U | V | W


credit ratingCredit reporting agencies are third party reporting agents that collect information about consumers' financial affairs and sell this information to their clients (which include banks and lending institutions). Credit ratings are set by creditors who pass this information to the reporting agencies. A credit rating consists of a nine-point rating scale:
Rating What it Means
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 your debts, coding given to debts included in Orderly Payment of Debt, Credit Counselling or Consumer Proposals.
R8 Repossession (voluntary or involuntary return of merchandise)
R9 Bad debt; placed for collection; moved without giving a new address, coding given to debts included in bankruptcy.

The R stands for Revolving credit (ie. a credit card or line of credit with no defined payment schedule). Accounts are also coded on this scale with the letter I in front of the number rating. This I stands for Installment credit (ie. a loan with a defined payment schedule such as a vehicle loan).
 


All | A | B | C | D | E | F | G | H | I | J | L | M | N | O | P | Q | R | S | T | U | V | W


Glossary V2.0