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Types of Debt & Credit Issues
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Most common types of debt
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247
Business loans
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Secured vs unsecured debt
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What are payday loans?
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Warning signs of financial difficulty
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251
How to deal with creditors
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252
Collection agencies
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OSAP and student loan repayment
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Creditor options for collecting debts
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Debt repayment methods
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Ways to Get Out of Debt
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Different ways to get out of debt
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Debt consolidation and informal arrangements
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Consumer proposals
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0275
Division 1 Proposal
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Who can help you get out of debt?
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Personal Bankruptcy
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256
What is personal bankruptcy?
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257
What is the difference between insolvency and bankruptcy?
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258
Licensed Insolvency Trustees: Services, fees and licensing
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259
Filing for personal bankruptcy
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260
Final Discharge and debts not cleared by bankruptcy
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261
Second-time bankrupts
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Effects of Personal Bankruptcy
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0262
How soon after bankruptcy can I get a credit card?
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0263
How soon after bankruptcy can you get a loan, mortgage or other credit?
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0264
How long does a bankruptcy remain on my credit report?
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0265
Will bankruptcy remove all my debts?
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0266
What property can I keep after I declare bankruptcy?
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0267
Duties under the Bankruptcy and Insolvency Act
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0268
See AlsoHow Does a Consumer Proposal Affect Your Credit Score?What are the Different Ranges of Credit Scores? | EquifaxInformation archivée dans le WebWhat Are R-Values?What does bankruptcy do to my credit rating?
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0269
How does bankruptcy affect divorce?
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What happens with my taxes and CRA benefits if I file for bankruptcy?
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What happens if I receive property, assets or an inheritance while I am bankrupt?
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What happens to my salary, and surplus income while I am bankrupt?
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Business Bankruptcy
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0277
Voluntary business bankruptcy
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0278
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0279
Business bankruptcy procedure
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0280
Effects of bankruptcy on small business owners vs corporations
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Wage Earner Protection Program (WEPP): Protecting employees when a business goes bankrupt
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Alternatives to Business Bankruptcy
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Informal Proposal to creditors
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Division 1 Commercial Proposal
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Receivership and buyback
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Credit Reports, Scores and Ratings
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What is a credit score?
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0285
What is a credit rating?
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0286
What is a credit report?
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0287
Can I correct information on my credit report?
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0288
How long is information kept on my credit report?
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0289
How can I repair my bad credit?
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0290
Credit reporting agencies
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Related links
HomeLegal Answers Credit, Debt and Bankruptcy Credit Reports, Scores and Ratings What is a credit rating?
Region: Ontario
Area of Law: Credit, Debt and Bankruptcy
Answer # 0285
Region: OntarioAnswer # 0285
Credit ratings are codes that lenders useto rate how and when you make payments. Credit ratings are contained in credit reports. A credit reports is a file kept by credit reporting agencies that contains information on a person’s credit history. Each separate credit account you havewill have a credit rating.
Credit ratings are basedon a scale from 1, which is the best rating and means you pay your bills within 30 days of the billing date, to 9, which is the poorest rating,which could meanyou never pay your debts at all, you’ve been placed for collection, or youhavefiled for bankruptcy.
Credit Help
When you are in a situation of financial difficulty, there are many options to consider. For easy-to-understand debt solutions, including bankruptcy, contact an experienced and compassionate agency. Get the help you need to rebuild your financial future. It’s easier than you think.
Type of credit
A letter will also appear before the number, indicating the type of credit you are using:
‘R’ refers to revolving credit, such as a credit card, where you make regular payments in varying amounts, and you can borrow up-to a creditlimit.
‘O’ refers to open credit, such as a line of credit, where you borrow up-to a certain limit, and the total balance is due at the end of each period.
‘I’ refers to installment credit, such as a car loan, where you borrow money once and repayit on a regular basis, in fixed amounts and for a specific period of time, until the loan is paid off.
North American Standard Account Ratings: “R” Ratings
The most common and most frequently used ratings are “R” ratings for revolving credit items. Known as the North American Standard Account Ratings, the Federal Office of Consumer Affairs (OCA) lists them as follows:
- R0: Too new to rate; approved but not used.
- R1: Pays (or paid) within 30 days of payment due date or not over one payment past due.
- R2: Pays (or paid) in more than 30 days from payment due date, but not more than 60 days, or not more than two payments past due.
- R3: Pays (or paid) in more than 60 days from payment due date, but not more than 90 days, or not more than three payments past due.
- R4: Pays (or paid) in more than 90 days from payment due date, but not more than 120 days, or four payments past due.
- R5: Account is at least 120 days overdue, but is not yet rated “9.”
- R6: This rating does not exist.
- R7: Making regular payments through a special arrangement to settle debts.
- R8: Repossession (voluntary or involuntary return of merchandise).
- R9: Bad debt; placed for collection; moved without giving a new address, or bankruptcy.
More information on credit reports and credit ratings can be found from theFinancialConsumer Agency of Canada. Visitcanada.ca.
Get help
A criminal recordwill affect your ability to get a loan, a mortgage, or a job. To erase yourcriminal record, learn more at Pardon Partners.It’s easier than you think.
There are many options to consider when you are in a situation of financial difficulty. For easy-to-understand debt solutions on your terms, contact our preferred experts 4Pillarsand rebuild your financial future. With 60 locations across Canada, they will help youdesign adebtrepayment plan and guide you with compassionate advice. No judgment. For help, visit4Pillarsor call toll-free 1-844-888-0442.
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-
Types of Debt & Credit Issues
-
246
Most common types of debt
-
247
Business loans
-
248
Secured vs unsecured debt
-
249
What are payday loans?
-
250
Warning signs of financial difficulty
-
251
How to deal with creditors
-
252
Collection agencies
-
253
OSAP and student loan repayment
-
254
Creditor options for collecting debts
-
0292
Debt repayment methods
-
-
Ways to Get Out of Debt
-
255
Different ways to get out of debt
-
0273
Debt consolidation and informal arrangements
-
0274
Consumer proposals
-
0275
Division 1 Proposal
-
0276
Who can help you get out of debt?
-
-
Personal Bankruptcy
-
256
What is personal bankruptcy?
-
257
What is the difference between insolvency and bankruptcy?
-
258
Licensed Insolvency Trustees: Services, fees and licensing
-
259
Filing for personal bankruptcy
-
260
Final Discharge and debts not cleared by bankruptcy
-
261
Second-time bankrupts
-
-
Effects of Personal Bankruptcy
-
0262
How soon after bankruptcy can I get a credit card?
-
0263
How soon after bankruptcy can you get a loan, mortgage or other credit?
-
0264
How long does a bankruptcy remain on my credit report?
-
0265
Will bankruptcy remove all my debts?
-
0266
What property can I keep after I declare bankruptcy?
-
0267
Duties under the Bankruptcy and Insolvency Act
-
0268
What does bankruptcy do to my credit rating?
-
0269
How does bankruptcy affect divorce?
-
0270
What happens with my taxes and CRA benefits if I file for bankruptcy?
-
0271
What happens if I receive property, assets or an inheritance while I am bankrupt?
-
0272
What happens to my salary, and surplus income while I am bankrupt?
-
-
Business Bankruptcy
-
0277
Voluntary business bankruptcy
-
0278
-
0279
Business bankruptcy procedure
-
0280
Effects of bankruptcy on small business owners vs corporations
-
0291
Wage Earner Protection Program (WEPP): Protecting employees when a business goes bankrupt
-
-
Alternatives to Business Bankruptcy
-
0281
Informal Proposal to creditors
-
0282
Division 1 Commercial Proposal
-
0283
Receivership and buyback
-
-
Credit Reports, Scores and Ratings
-
0284
What is a credit score?
-
0285
What is a credit rating?
-
0286
What is a credit report?
-
0287
Can I correct information on my credit report?
-
0288
How long is information kept on my credit report?
-
0289
How can I repair my bad credit?
-
0290
Credit reporting agencies
-
Related links
