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What Is A R9 On Your Credit Report

What Kinds Of Errors Are In Your Credit Report After A Consumer Proposal

What’s an R9 mean on my credit report and can I fix it?

It helps to start with an understanding of how your credit history is rated, as it quickly becomes apparent where the errors could be that hurt you. Credit facilities are ranked on a scale from R0 to R9. R9 is the absolute worst rating possible, and R1 is what you should aspire to it means you always pay on time and are never even 30 days late.

If you have filed a consumer proposal, most accounts are reported as R9 which means bad debt, written off, or unable to locate. This is simply not correct if you have agreed to repayment terms with creditors and complete your proposal faithfully they should be rated as R7, which is bad, but not so bad.

Some credit card issuers report your card as Included in Bankruptcy, also an R9, and also incorrect. We see this often with TD Bank and American Express.

A few credit card issuers seem to completely ignore the fact you filed a proposal. The day your consumer proposal was approved in court, you legally gained relief from your creditors, and both you and the creditors agreed to how those debts would be repaid. Yet these card issuers continue reporting ongoing late payments months, and years after your proposal was accepted and youve met the repayment terms.

Its also common to see unpaid collections from Collection Agencies in your credit report. These debts were probably included in the consumer proposal you filed, but for whatever reason, they never got properly updated.



Factors That Influence Your Score

  • Payment history Any delay of thirty days or more will be noted in your file and will negatively affect your score. The longer the delays, the greater the damage will be. Avoid delays at all cost! Note that even if you fully reimburse a balance that was late, it will leave traces in your credit file for 6 years!
  • Balance due versus your credit limit An average of over 50% of the authorized credit will negatively affect your score, even if you pay the total balance at the end of every month. Ideally, you should maintain a balance of less than 35% of the authorized limit. For example, no more than $3,500 for a $10,000 limit. That said, be careful because a higher credit limit increases debt risk..
  • Age of your accounts Old accounts allow your creditors to more easily assess your repayment habits. Thus, the longer the history, the better your score will be. The score takes into account your oldest account plus the average age of all your accounts. Keep your oldest account active and avoid opening too many new ones.
  • New credit applications Each time a lender checks your credit report to grant you a loan or credit card, a note is written in your file and will stay there for 3 years. If you are searching for credit, creditors will think that you are more likely to get into debt which is not a good thing. Knowing this, avoid multiple credit requests and avoid filling out credit card applications for a chance to win a trip.
  • How Does Bankruptcy Affect My Credit Rating

    Your credit report is maintained by one of two major credit rating agencies in Canada: Equifax and Trans Union. When you apply for a loan, whether a credit card or a mortgage, your lender will review your credit report. This report contains information about whether or not you have unpaid bills, how much credit you have outstanding and even how many times you have applied for credit.

    If you file for bankruptcy a note will appear on your credit report indicating that you have done so. This information is provided to the credit bureau by the federal Superintendent of Bankruptcy. Each month they provide a list to the credit reporting agencies of everyone who has filed or a . It is important to understand that it is not your trustee advising the credit bureau of your bankruptcy, or your discharge. Rather it is part of the process completed by the Office of the Superintendent of Bankruptcy. They also provide a list of people who have been discharged.

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    Most Credit Reports Are Chock Full Of Errors After A Consumer Proposal

    Sadly, if you are in or have recently completed a consumer proposal, chances are very high your personal credit history is full of reporting errors. Not just one or two small mistakes, but several serious errors which are likely hurting you quite a lot. These errors paint an overly negative picture of your use of credit and your repayment history, and they drag down your credit score substantially.

    Importantly, this is NOT your trustees fault. It affects all trustees equally. And, its not your fault either.

    It comes down to the way lenders and credit card issuers and collection agencies report to the credit agencies. The credit agencies are in the business of collecting information and packaging it for sale to the companies that need to assess your creditworthiness. They gather and report the information provided to them and trust it to be accurate.

    Even if they wanted to, they dont have the means to fact-check every single piece of data submitted to them. But fortunately, if its not accurate, they will allow you the opportunity to fix mistakes.


    You knew your personal credit history would take a beating when you filed your consumer proposal but it seemed like a price worth paying for the peace of mind of being able to meet your financial obligations each month. But after youve done the heavy lifting, you shouldnt be penalized for other peoples mistakes or maybe even vindictive filing of false information.

    So why does this happen?

    How Does A Collection Entry Impact Your Credit Score

    Recover From An Unresolved R9 On Your Credit Report ...

    Once one of your credit accounts is sent to collections, a collection entry is logged on your . Its this negative information that can hurt your credit history. Having a negative entry like this can turn your good credit score into a poor credit score.

    Its hard to say how much of a drop it will lead to in your credit score. Both Equifax and TransUnion have separate credit scores. A collection entry may lead to a bigger credit score drop with one credit reporting agency over the other.

    How big of a drop largely depends on how good your credit scores were to start with. If you had an excellent credit score, it could really drag down your credit score. Meanwhile, someone who already had a poor credit score might not seem that much of a drop.

    Likewise, the longer the collection entry appears on your credit report, the less it will affect your credit score.

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    David Sklar & Associates:

    Residents of the Greater Toronto Area have had their lives turned upside-down by the pandemic of COVID-19. Here at David Sklar & Associates, we understand that many residents have been thrown into financial instability because of this health crisis and are concerned about what to do next. If you need financial help, we are still here for you. We offer over-the-phone consultations and electronic document signing so that you can access our services from the safety of your home. We want to encourage our clients to prioritize their health as best as they can during these uncertain times.

    An R9 on your credit report can be a serious problem. But the good news is that its one that you can resolve. When you take these recommended steps, you can revamp your personal finances and change your credit report for the better.

    What Types Of Credit Reporting Errors Are Most Common

    Your is broken into four sections:

    • Personal information
    • Public records

    Look at each of these sections separately for areas where your credit report may be wrong.

    In the personal information, watch for incorrect spellings of your name and any wrong address, employment history, birth date, social insurance number etc. Personal information errors can mean your lender cant identify the correct credit report when you apply for a loan or when they report information to the credit bureau.

    Next, review the list of credit accounts and your . This is where banks and credit providers make a lot of reporting mistakes. A credit report error can significantly affect your .

    In addition to errors in your personal information, look for the following in your credit file:

    • duplicate accounts,
    • incorrect notices of late payment and dates of last payment
    • closed accounts still marked as open
    • negative information reported incorrectly
    • negative information not removed after the retention period has passed.

    For account type, you will see four options: I for an installment loan, O for open , R for revolving credit and M for a mortgage. Each account will also have a payment status code:

    What if I filed a bankruptcy or proposal?

    A bankruptcy or consumer proposal provides a stay of proceedings that freezes future creditor actions. Your accounts should effectively freeze on your credit report at the date of filing and appear as either included in your bankruptcy or included in your proposal.

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    About Askross Credit Renovation Services

    I promise this commercial message will be brief.

    Our team has helped thousands of Canadians optimize and clean up their credit histories since 2003.

    Our relationship of mutual respect with the reporting agencies gives us the ability to fast track investigations with Equifax Canada , and we can often remove all reporting errors within just a few days of making the request. This is because they trust us not to make spurious claims or file incorrect information. And, we can also put together a similar package for you to send to Trans Union Canada.

    And, our expertise is second to none. Ross Taylor is acknowledged as the foremost expert on personal credit within the Canadian Mortgage Industry and has been recognized as the industrys Financial Literacy Leader since 2017. He is a frequent speaker and educator to mortgage brokers, lenders and trustees on credit matters.

    If you believe you might have errors on your credit report and would like us to take a look, please contact us, or complete the form on this page.

    Dont Apply For More Credit

    Credit Scores & Reports : How Can I Have an R9 Charge-Off Removed From My Credit Report?

    Making numerous requests for credit is often interpreted by lenders as a sign of poor money management and risky financial behaviour. Your credit rating could still take a big hit, even if the lenders reject your requests. Put your plans for more credit on pause for a little while. Patience will be rewarding.

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    How Will A Consumer Proposal Affect My Credit

    If youve already done some reading about consumer proposals, youve seen that there are several differences between a consumer proposal and bankruptcy. Although both debt relief options allow those who are in a significant amount of debt to get out from under what they owe, the consumer proposal is far less disruptive to their lives. For instance, a consumer proposal does not require you to hand over any of your assets to your trustee for distribution to your creditors. Bankruptcy, on the other hand, requires that you surrender assets such as excess household furnishings, vehicles, personal possessions like jewelry, non-RRSP account balances, and even your home to the trust administered by your licensed bankruptcy trustee. Even though there are exemptions in bankruptcy, the value and quantity of what you have to surrender to make sure your creditors get something will likely be significant.

    The fact that there is no direct financial cost in a consumer proposal like there is in bankruptcy does not mean that you will make it through the consumer proposal unscathed. If your consumer proposal is accepted, your credit will be impacted significantly. In fact, a consumer proposal damages your credit rating as much as bankruptcy does.

    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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    Why Is It Necessary To Get A Copy Of Your Credit Report

    Lending institutions such as banks use the information on your credit report to determine if you qualify for loans and at what interest rate. Inaccurate information can affect your ability to obtain credit or the interest rate that you are charged. Checking your credit report can also alert you to any identity theft that has taken place.

    In Canada, there are two credit reporting agencies: Equifax and TransUnion. They each allow you to get one free credit report by mail every year. To ensure that the information is accurate, we recommend you alternate between the two agencies every six months. For instance, if you get your free Equifax credit report every January, get your free TransUnion credit report in every June.

    Here is some information on how to get a free copy of your credit report directly from the credit bureaus.

    To Obtain Your Credit File

    Credit Scores &  Reports : How Can I Have an R9 Charge

    By law and upon request, you have the right to obtain a copy of your credit file. You can obtain a copy by mail, free of charge, by completing the application form at You can also obtain a copy through the Internet at cost of $15.50*. If you wish to obtain your credit file and your score, the cost is $21.95*. .

    To obtain your credit file by mail or in person, free or charge, by completing the application form at

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    How To Recover From An Unresolved R9 On Your Credit Report

    by Ajay Oberoi | Bankruptcy, Budgeting, collection calls, Consumer Proposal, , Insolvency

    f you have the R9 in the credit bureau, it will certainly continue to be on your record!

    An R9 condition, often called a charge-off, is a credit history record standing that stands for a trade-line that is significantly overdue, more than six months behind, as well as is a ding on your debt report. If it is inaccurate, as well as you pay the account off, the trade-line will state shut or paid in full, but the history of delinquency will remain.

    Tips For Credit Rebuilding

    Ironically, the only way to fix your credit score is to start borrowing money again. If you are in a consumer proposal, think carefully about the purpose of this process, and how to avoid new problems with your credit. Even though it feels good to be offered new credit, or be accepted for a new card, be sure not to overextend your ability to make regular payments. Go slowly. You do not need to borrow large amounts to rebuild your credit. Making all your payments on time is the key. In addition, pay attention to the interest rates and fees charged on credit products you apply for as there are some lenders who may not have your best interests in mind.

    Here are some tips for rebuilding your credit.

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    The Factors That Affect Your Credit Score

    Your credit score is calculated using multiple pieces of data, taken from your credit report and grouped into 5 categories. The percentage taken from each section reflects the importance of that specific factor.

    The 5 factors that make up your credit score include:

    1. Payment History

    Realistically, someone who has a consistent history of making payments on time is perceived as less of a risk. Theyre considered more trustworthy than someone who frequently makes late payments, short payments, or misses their payments completely. That being said, this credit score factor takes into consideration both late and on-time payments.

    Other important factors include: how late the payments were made , whether partial or full payments were made, and the total number of past-due payments. Also included are accounts that have been sold to collection agencies, charge-offs, debt settlements, bankruptcies, foreclosures, wage garnishments, and liens.

    2. Outstanding Debt

    This is the amount owed on all credit and loan accounts. It includes how much of your total available credit youve already used and the amount of debt you owe in total.

    3. Length of Credit history

    4. New Credit

    5. Credit Mix

    This refers to the different types of credit used, such as credit cards, mortgages, store accounts and installment loans, and how many accounts you currently have. It is crucial to apply for credit in moderation, as your credit score drops slightly whenever a credit check is performed.


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