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What is a Credit Rating?

Every piece of credit information in the history of your credit file is assigned a rating by the credit grantor. The most common ratings are “R” rating. These are known as North Americas add the account. The “R” indicates that the item being described involves revolving credit. If you always pay on time, be coded an R1. If an amount was cancelled because they never returned it, is coded R9. The capabilities of R is a coding system that translates “on time”, “month late”, “two months late”, etc, in the two-digit codes. Note that now in common use most credit providers is a numerical system called FICO or Beacon score. There is usually included in the free credit report you request. The standard credit scores are listed below:

Your credit score – which means

R0 too new to rate; approved but not used
R1 pay (or paid) within 30 days of billing or payments as agreed
R2 pay in 30 days but less than 60 no, or more than two payments past due
R3 paid in more than 60 days after the payment due date, but less than 90 days, or no more than three payments past due
R4 pay (or paid) in more than 90 days after the payment due date, but no more than 120 days, or four payments past due
R5 Account is at least 120 days late, but is not yet rated “9″
R7 make regular payments through a special arrangement to settle the debts of his re: OPD or Proposal
R8 Recovery (voluntary or involuntary return of goods)
R9 bad debt, as for the collection, moved without giving a new direction; bankruptcy
Other rating indicators that can be found in a report are “I” for instalment credit or “O” for open credit line.

Research your own credit rating:

Under consumer legislation governed by each province is entitled to a copy of all information from a credit bureau has on you.

There are two credit bureaus in Canada: Equifax and Trans Union.

For a copy of your credit report by mail or fax a request with copies of two forms of identification to the companies.
In a couple of weeks, your report will be sent to you. The service is free. They will not discuss your credit reports, but you can go to his office and ask to see their report.

Trans Union Equifax Canada
Consumer Relations Department of Consumer Relations
Box 190 Jean Talon Station Suite 709 3201 W Main Street
Montreal, Quebec Hamilton, On L8S 1A2
H1S 2Z2 Tel: 9980 1800663
Tel: (514) 493-2314 Fax: (905) 527-0401
1 800 465-7166
Fax: (514) 355-8502

You can dispute errors on your report. Information on how to dispute bad information is included in the written credit report you receive from the office. However, the credit bureaus are not intended to be accessible to the consumer and can be extremely difficult to change or correct the information in your report.

The credit bureau is required to review their complaints, however, you must provide all materials requested in its forms. The forms, which accompany your personal credit report, explain how to file disputes and get corrections made. Can be a drawing, but be persistent.

If the credit bureau will not correct the file, we ask that you mark the file “in dispute.” You can also exercise their right to have a statement (100 words or less) placed in your credit report explaining your side of the story to potential creditors.

No direct access to erase bad credit records. Organizations that offer quick fixes are interested in your money and cannot really do much for you. We strongly recommend to be avoided.

This is just information sharing & not legal advice, please consult right legal professional for the help.

Did you find this information helpful? If so, check out my blog where I post articles I find to be relevant to how to rebuild your credit.


Vijay Gandhi, MBF,B.Sc. Mortgage Agent
Licence #: M10001947

CENTUM Metrocapp Wealth Solutions Inc.
Licence #: 12147
716 Gordon Baker Road Unit #204A
Toronto, ON M2H 3B4

C. 647.267.6338
F. 888.813.9403
E. vijay_gandhi@centum.ca