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What Does R9 Mean On Credit Report

Advice To Improve Your Credit Score

What’s an R9 mean on my credit report and can I fix it?
  • Before applying for a loan, arrange to obtain a copy of your credit report from the credit agencies and review them to ensure that there are no errors. Should there be an error, you should make the correction immediately. A well prepared credit application with a reasonable amount requested, properly presented at your financial institution will reduce the chances of a refusal and avoid a negative note in your credit file.
  • Avoid repeated credit loan applications. Rejected loan applications negatively impact your credit score.
  • Before scheduling a meeting at your financial institution, you should calculate your Debt Ratio to make sure you are an acceptable range . If you exceed 40%, the loan application will likely be rejected, and this rejection will negatively affect your credit rating. You might want to discuss the situation with your financial institution manager before making the official loan request.
  • Avoid paying your accounts late. Whether the unpaid amount is small or large, a delay is a delay. An R-9 credit rating is frowned upon by your creditors, whether the outstanding amount is 2,000 $ or 200 $.
  • Try to maintain your credit card and line of credit balances as low as possible, ideally 25% or less of the authorized limit. It is at this percentage that your credit score increases the most. Should the balance be more than 50% of the authorized limit, there can be a negative impact on your credit score.
  • Why Consider Opting For A Consumer Proposal

    If you have the capacity to make partial payments towards your debts, opting for a consumer proposal is an advantageous option for a number of reasons. It not only helps you avoid bankruptcy but can also relieve you of a significant proportion of your debt without interest. In addition, it consolidates your debts into one reasonable and affordable monthly payment, the terms of which can be negotiated with the guidance of a federally Licensed Insolvency Trustee. Moreover, there is no loss of assets in a consumer proposal,so assets like home equity investments, and secondary motor vehicles can be retainedwhile stopping collection calls and legal action from creditors. Proposals filed by Licensed Insolvency Trustees are the only debt settlement plans sanctioned by the Government of Canada. The Office of the Superintendent of Bankruptcy is the section of the Government of Canada that regulates the bankruptcy and consumer proposal processes in Canada.

    It is important to remember that filing a consumer proposal is a positive step, and the effect on your credit rating will be temporary. Questions about consumer proposal or how does a consumer proposal affect your credit score? A Licensed Insolvency Trustee can answer your questions and help you explore your options. Contact a Trustee today for a free consultation.

    Financial Information On Your Credit Report

    Your credit report may contain the following financial information:

    • non-sufficient funds payments, or bad cheques
    • chequing and savings accounts closed for cause due to money owing or fraud committed
    • bankruptcy or a court decision against you that relates to credit
    • debts sent to collection agencies
    • inquiries from lenders and others who have requested your credit report in the past three years
    • registered items, such as a lien on a car that allows the lender to seize it if you dont make payments
    • remarks, including consumer statements, fraud alerts and identity verification alerts

    Your credit report contains factual information about your credit cards and loans, such as:

    • when you opened your account
    • how much you owe
    • if you made your payments on time
    • if you missed payments
    • if your debt has been transferred to a collection agency
    • if you went over your credit limit
    • personal information thats available in public records, such as a bankruptcy

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    How Do I Know If There Are Reporting Errors In My Credit History

    One silver lining of the COVID-19 crisis is both credit bureaus in Canada are allowing FREE online credit reports. No strings attached. You will receive a comprehensive report with all pertinent information, EXCEPT it will not show your credit score. This is a great opportunity for you to check and check for reporting errors.

    You need to read the report carefully, taking notes as you go, looking for all things factually incorrect. At this point, you can launch your own investigation with the bureau you will find their investigation forms on their respective websites. Then, send in the completed form, together with all documents you have to support your claim, and two pieces of ID .

    If you get the package done right the first time, you may see your report updated in as little as one or two months. If you missed something, after they respond to you, you will start over and the clock resets. Some people are able to get this done eventually, and others give up in frustration. It can require patience and persistence to get through the hurdles.

    What Are Credit Ratings

    What Does Your Credit Score Actually Mean?

    Reading your credit rating takes a little decoding. Essentially, a lender will assess your repayment history on a scale of 1-9. 1 being the highest and 9 being bankruptcy or other failures to pay the debt in question.

    They also designate letters in front of the number ranking. The letters help the lender get a better understanding of how youve handled credit in the past. R for revolving credit, i.e. your credit cards, is what youll see most often attached. You are responsible to pay a varying amount, depending on your balance, up until you reach your limit. I is for an installment loan for set payments made every month until the balance is paid off entirely. I.e. a closed loan, like your car loan or debt consolidation loan. Less commonly, you will see an O for open credit. This is where you are allowed to take out a certain amount, with the whole balance due on a specified date.

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    How Does The Credit Reporting System Work

    As we mentioned earlier, the credit bureaus, TransUnion and Equifax are the two major sources for providing credit reports in Canada. Your credit score is based on your credit report, which you may access upon request. The reporting companies issue credit reports to lenders, insurers, and other organizations in order for them to evaluate your creditworthiness.

    Heres an example of how the system works:

    What Do I Do I9 Reported On My Credit But I Didnt See It On My Credit Reports


    So my wife and I are in the process of purchasing a home, we did get preapproved for the max amount on FHA. But I am really wanting to go conventional. We have 10% to put down on the home budget we are set on and are prepared to pay PMI , but during the qualification process our lender on the “automated underwriting system” discovered an i9 report, which was reported as a foreclosure on a home I let go in Feb 2008.

    I had an 80/20 loan, the 2 main mortgage companies I had didnt report it, but a company who purchased the 2nd mortgage debt listed the i9 on June 2010. The foreclosure was in Feb 2008. I filed bankrupcty January 2010 and was discharge was June 2010…. This is why this company listed this i9 the same month as the discharge date, but the BK should have protected me from this inaccurate report anyways.

    Is there anything I can do since this is reported incorrectly? I dont know who to write to since I didnt see this on any of my 3 credit reports, only on this system I guess lenders can use… My mid score is 696, so no issues going conventional, not sure if other lenders can look past this, this is the only neg on my report other than the BK.

    530 – Dec 2009684 – May 2014 720

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    What Is An R9 Credit Rating

    First things first, what is a credit rating? Its a code used by creditors to assess someones ability to cope with financial credit. Creditors send these codes to credit bureaus like TransUnion and Equifax. Credit bureaus add the ratings onto credit reports and use them to calculate credit scores. All of these factors help banks, credit unions and other authorities know whether someone is financially reliable or a lending risk.

    A credit rating is made up of two parts: a letter and a number. The letter symbolizes what type of credit is being used. The number symbolizes how well you commit to the repayments for that credit.

    These are the credit rating letters:

    • I for Installment Credit
    • 0 means its too new to rate
    • 1 means that it was paid within 30 days or paid as agreed
    • 2 means that it was paid 31-59 days late
    • 3 means that it was paid 60-89 days late
    • 4 means that it was paid 90-119 days late
    • 5 means that it was paid more than 120 days late
    • 6
    • 7 means that you are making regular payments through a debt management option
    • 8 means repossession
    • 9 means bad debts, debts sent to a collection agency or bankruptcy

    As you can see from these lists, R stands for recurring/revolving credit. The number 9 stands for bad debts, debts sent to a collection agency or bankruptcy. Together, it means that someone has serious outstanding debts for a recurring/revolving credit account. There is no rating worse than an R9. Essentially, its the worst-case scenario.

    Myth #: You Can Only Check Your Credit Score For Free Once A Year

    How long does bankruptcy stay on my credit report?

    You can actually pull your credit report from each credit bureau once per year for free by mail or phone. This only gives you access to the debts that are listed on your report and their ratings. Getting your credit score requires paying an additional fee. Services such as and Borrowell provide free access to your credit score, drawing on information from the credit bureaus, and provide a good ballpark idea of what your score is. However, it should be noted that these third-party services dont always provide the full picture and can sometimes worry Albertans for no reason. The most reliable way to know your score is by ordering it from the credit bureaus directly.

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    Myth #: Paying My Utilities Bills On Time Will Improve My Credit

    Unfortunately, this isnt the case. Utilities and most cable/Internet providers do not report payment histories to the credit bureaus unless payments are in default. If payments are up to date, they will not influence your credit score. If payments get behind or go to collections, they can be reported and will have a negative affect on the credit score. One exception to this appears to be Rogers Cable, which some have said are reporting to the bureaus regularly. Cell phone companies also report payment histories to the credit bureaus, so keeping your cell phone payments current can help to improve your credit score.

    How To Handle The Rs

    Like always, the best thing you can do for your credit report and resulting . Whether that involves strict budgeting or setting up auto pay, you need to find a system that works best for your situation. All of your credit report headaches can be avoided with on-time payments. If that is not possible for one bill or many, youll start seeing the effects on your credit report, like an R rating that is not an R1. If enough time has passed for you to consider restructuring your debt, that is a viable option for improving your R rating. It wont completely absolve you of your missed payments record, but it will improve your rating to an R5, which is much better than having an R9 listed. It shows creditors that you negotiated with your lender to come up with a solution to your missed payments. To begin this discussion, use Kredit to get in touch with your creditors and start working on a deal to appease both parties.

    Since paying off the debt completely and restructuring it will yield the same results, do not hesitate to pursue a settlement agreement. Youll save money and will still end up with an R5. Even if you are sued over a debt and resolve it through a repayment plan, youll still see an R5.

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    Where To Find Your Credit Report And Credit Score

    There are two ways of pulling your credit report one is free, and the other has a small fee.

    The Free Method

    If you want to pull your credit score for free then you will have to contact Equifax Canada or TransUnion Canada. They will then send you your report by mail. The advantage, of course, is that its free, but the disadvantage is that it may take some time for you to receive your report. You will be able to see your credit report, but not your credit score. Furthermore, the credit bureaus only allow you to request one free copy of your report per year.

    Getting Your Report Online

    If you want to get your credit report online and instantaneously then there will be a fee . The advantage here is that there is an option to see your credit score, and you can see it instantly.

    Third-Party Providers

    You can also choose a third-party provider, for example, Borrowell. Companies like this have partnered with a credit bureau to provide their clients with access to an online portal where they can check their credit score and credit report for free or for a small monthly fee.

    How To Clean Up Your Report

    What Does Your Credit Score Actually Mean?

    Improving your credit score and cleaning up your credit report isnt as simple as paying missed bills and becoming debt-freealthough that can help. Paying your bills on time and consistently, never missing a payment, holding various credit accounts, and apply for credit only when you need it, can increase your score.

    However, poor credit choices and bad financial decisions can stay on your report for upwards of six years, if not longer. That is why starting on the right foot, with a good understanding of your credit report and how it can affect your future financial choices is vital for reaching your goals.

    Reviewing your credit report at least once a year can help you catch and report errors. If you think an item on your report is an error, first, contact both Equifax and TransUnion and notify them of the mistake. If the error is in your personal information, you should ask that the details be corrected. If the item is suspected to be fraud, request an alert on your credit report. Also, inform the Canada Anti-fraud Centre.

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    Why Is It Important To Maintain A Good Credit Rating

    The credit rating defines the financial reputation of a consumer. The higher the credit rating, the better the chance of obtaining credit from a financial institution or lender. Creditors use the credit report to decide on granting or refusing a loan and to set the interest rate. That is why the credit rating is crucial when the time comes to borrow major sums for such purchases as a house or car.

    Conversely, a bad credit rating complicates the process to get a loan. A weak credit rating can also lead to indirect negative impacts, such as an inability to rent a dwelling. Fortunately, you can improve your credit rating by implementing certain measures. A Ginsberg Gingras professional can help you with this.

    Everything you need to know about your credit report

    The credit report is an overview of your credit history. All contracted loans, credit cards and financing you have obtained are included in your credit report. The credit rating is another piece of information included in your credit report.

    • A financial institution, before agreeing to give you a loan.
    • A business, prior to selling you something on credit.
    • A landlord, before renting you an apartment.
    • An employer, prior to hiring.
    • Yourself, to check the information contained.

    A Horrible Credit Score After Finishing A Consumer Proposal Isnt Necessarily Your Fault

    Many, if not most, people whove been through a consumer proposal are surprised to find out their credit score is much lower than they thought it should be after theyve successfully completed the process and fulfilled all the terms that were agreed to repay their debts.

    You probably shouldnt expect to look like a lily-white lamb after all, you entered the consumer proposal because you were in over your head, and could no longer afford to pay back your credit balances. Regardless of the circumstances that got you there, you have a rebuilding process to gain back creditors trust and prove you have better control of your spending and paying bills on time.

    On the other hand, the whole point of entering the consumer proposal was to reset your personal finances. And, now that youve wrestled your debts to the ground and to begun to live within your means, shouldnt you be getting credit for the progress youve made and the discipline you demonstrated to live within a very strict budget for several years, now that youve finally paid back your creditors? Why does your credit score look like youve just declared bankruptcy, have a bunch of late payments and collectors chasing you for more? Why are you still near rock bottom?

    Thankfully, your hunch is most probably correct. Your score should be higher, and there is something you can do about it!

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    How Does A Consumer Proposal Show Up On My Credit Report

    A reference to the fact that you filed a consumer proposal will appear in two different sections of your credit report.

    First, the Office of the Superintendent of Bankruptcy will send information to the credit bureau notifying them that you filed a consumer proposal. A note will appear in the legal or public records section of your credit report identifying the type of proceeding and the date you filed. When you complete your proposal, this information is updated with the completion date. We explain below how long this notice will remain on your report.

    Second, each individual creditor will report that the account was included in a proposal. The debt will be coded as an R7 which means you have entered into an arrangement to settle your debts with your creditors. A perfect credit rating is an R1, and bankruptcy is an R9, so a proposal is sometimes viewed as slightly better than a bankruptcy. Account information is generally purged from your credit report six years after the last activity date. That may be the last date of payment or the date of filing, depending on the creditor. Occasionally, creditors will incorrectly report your account as included in a bankruptcy. The proper legal proceeding will appear in the public records or legal section.


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