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Understanding Your Credit Report Rating
With credit being a way of life in today's society, most consumers understand the importance of establishing and maintaining a good credit rating. Since we each manage our own budget and spending habits, it’s not unreasonable to believe that we have control over our own credit scores and that our credit reports accurately reflect information about our responsibility in regards to our financial obligations.
79 percent of All Credit Reports Contain Inaccuracies
However, we can’t assume that our credit reports are mistake-free. In fact, nearly four out of five (seventy-nine percent) credit reports contain inaccuracies! Given the necessity of good credit and the unreliable nature of credit scoring, it is crucial to check and monitor the accuracy of our credit reports.
Order a copy of your credit report from each of the three major credit bureaus and carefully review your information. Mistakes you find today can save you thousands of dollars in the future. (For credit bureau information visit www.OvationLaw.com and click on the 'Important Links & Information' link in the Educational Resource Center. Also, each credit bureau offers a 3 in 1 report that contains information from each of the three bureaus' reports. See the Web sites listed at the bottom of this page for more information.)
Your Credit Rating
Now that you have your credit report, just how do you make sense of it all and what exactly are the credit bureaus saying about you? The following information shows the credit ratings used in your reports and will help you understand your overall credit scores and what items you should consider disputing with the bureaus.
| Number |
Rating |
R0 |
Too new to rate. Approved but not used. |
R1 |
Pays within 30 days of billing or as agreed. |
R2 |
Pays in more than 30 days, but less than 60 or when next payment is due. |
R3 |
Pays in more than 60 days, but less than 90 or when two payments are due. |
R4 |
Pays in more than 90 days, but less than 120 or when two payments are due. |
R5 |
Account is at least 120 days past due but is not yet rated R9. |
R6 |
No rating exists. |
R7 |
Paid through a consolidation order, consumer proposal or credit counseling debt management program. |
R8 |
Repossession |
R9 |
Bad debt, or placed for collection or bankruptcy |
Each item on your credit report carries a corresponding ratings number that summarizes your account status.
R – Revolving Account
I – Installment Loan
I0 – Installment Loan with no Payments Yet
Repairing your credit report is one of the most important financial decisions you can make. To learn how to effectively clean your credit report and better understand your credit score and consumer rights, download free information from Ovation Law's Educational Resource Center today.
The Three Major Credit Bureaus
Equifax - www.equifax.com
Trans Union - www.transunion.com
Experian - www.experian.com
Other Informative Web Sites
www.CreditFactsNews.com
www.yourRightsConsumer.com
www.CreditRepairScam.com
www.OvationLaw.com
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