Credit ratings can go from R0 to R9. The highest credit rating you can receive is an R1. The "R" stands for revolving account. The rating you receive will depend on how you pay your various credit accounts.
Definition
An R1 means that you are paying a creditor on time or as agreed. Payments are received before they are 30 days late.
Effects
When an account has a number of accounts that are rated R1, it will have a positive effect on your credit report. This will increase your credit score.
Bad Debt
The lowest credit rating you can receive is an R9, which is a bad debt. This is an account which has not received a payment in 180 days, and the creditor has written it off of its receivable listing and recorded it as a loss. The account is then turned over to a collection agency.
30 Days
An R1 can turn into an R2 if a payment is 30 days late but less than 60 days. When an account is reported as an R2, it can eventually return to an R1 if payments are made on time for a substantial period of time such as a year.
60 Days
An R1 can turn into an R3 if payments are more than 60 days late.
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