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What is the R-Code?

When the creditors and lenders send the information to the credit reporting agencies, each account comes with two identifiers, a number, and a letter. Here’s what they are and what they mean.

Letters Stand for the Type of Account

  • O- Open: A line of credit will show up as an open status account on your credit report.
  • R- Revolving
  • I- Installment: The individual pays back the loan in a fixed amount until the loan is paid back in full
  • M- Mortgage

Numbers Represent A Rating

  • 0- Account too new
  • 1- Paid within 30 days OR paid as agreed
  • 2: Late payment, 31-59 days late
  • 3- Late payment, 60-89 days late
  • 4- Late payments, 90-119 days late
  • 5- Late payments, more than 120 days late
  • 7: The account is currently under consolidation or a consumer proposal
    • Consolidation: When the applicant merges multiple debt streams into a single loan with a fixed monthly payment.
    • Consumer proposal:  A consumer proposal is a formal agreement between a consumer and their creditors aimed at settling debts without resorting to bankruptcy. The applicant renegotiates their debt obligations, committing to repay a portion of the total amount based on their affordability, typically within a timeframe of up to five years.
  • 8- Repossession
  • 9- Bad debt, sent to collections or in bankruptcy

Follow this link for a deep dive into the R-code system!

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