An R9 on a credit report means a particular type of account has been charged off by the lender. The terms charged off, bad debt and losses are interchangeable. The lender is reporting this account as a loss and removing it from its receivable listing because it has not been able to collect the balance.
Identification
On a credit report the, "R" stands for revolving. A revolving account is an account without a specific term such as 36, 48 or 60 months. Credit cards are examples of revolving accounts.
Time Frame
A charged-off account will remain on your credit for seven years. When this time frame has elapsed, the item should drop from your credit report automatically.
Significance
Bad debts or charged-off accounts will lower your credit score significantly. This can hinder your ability to receive credit, in the future, from other creditors. Lenders use credit scores to determine your level of risk. Scores range from 300 to 850. The higher your score, the better chance you have of receiving a lower interest rate on loans.
Considerations
A creditor will report an account on a credit report as a R9 when the borrower has not made a payment in approximately 180 days. These accounts are usually turned over to a collection agency for further collection activity.
Benefits
If you decide to pay off an account which has been charged off, you may be able to negotiate with the lender and have the derogatory information removed from your credit file. Some collection agencies are willing to negotiate and some are not.
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