What credit rating
Many lenders use credit ratings to help them make lending decisions.
These are known as North American Standard Account Ratings.
The "R" in credit rating indicates that the item being described involves revolving credit. If you always pay on time, it will be coded an R1. If an amount was written off because you never paid it back, it is coded R9. The R ratings are a coding system that translates "on time", "one month late", "two months late", etc. into two-digit codes. The most common ratings are "R" ratings.
R 0 - Too new to rate, approved but not used.
R 1 - Pays (or paid) within 30 days of payment due date or not over one payment past due.
R 2 - 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.
R 3 - 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.
R 4 - Pays (or paid) in more than 90 days from payment due date, but not more than 120 days, or four payments past due.
R 5 - Account is at least 120 days overdue, but is not yet rated "9"
R 7 - Making regular payments through a special arrangement to settle debts.
R 8 - Repossession (voluntary or involuntary return of merchandise)
R 9 - Bad debt; placed for collection; moved without giving a new address.Source: www.checkfirstonline.com