R Scores and what they mean on your credit report

R Score Credit Ratings

Most commonly, with Equifax, your accounts, and loans are each ranked separately on a scale of how positive the repayment history has been. The credit scale begins at zero and ends at nine—zero being too new to have a rating, and nine showing that the account has been written off. The r score rating is an indication of your history with revolving credit, that is a consideration in your overall credit score. Below are the numerical r score credit rating and their meaning:

 

R Rating Meaning
R0 Too new to rate
R1 Account in good standing
R2 A payment or payments have been made more than 30 days late
R3 A payment or payments have been made more than 60 days late
R4 A payment or payments have been made more than 90 days late
R5 A payment or payments have been made more than 120 days late
R6 Does not exist
R7 Account has been seen by a credit counselling or debt management agency and a re-payment structure has been created that is different than that of which was originally agreed upon at the onset of the account
R8 Secured loan of which the security has been repossessed
R9 Has been written off, sent to a collections agency or account was involved when bankruptcy was claimed

 

For example, a credit card with good repayment history would have a rating of R1- displaying a revolving credit account with good standing.

It is important to always keep up to date with your accounts, as even being late a couple of times within the last few years can impact your overall credit score, and cause challenges when getting an auto loan.

If you have questions or want to learn more, Contact us and we will be happy to help!