Lenders may use codes when they send information to the credit reporting agencies about how and
when you make your payments. These codes can have two parts: a letter and a number. For example,
an account may be coded as R2. The letter stands for the type of the credit you are using.
The codes also use numbers that range from 1 to 9. The best rating is 1. It means you pay your bills
within 30 days of the billing date. Ratings of 1 will help you achieve a strong credit score.
Any number higher than 1 will likely hurt your credit score. The worst rating you can receive is 9. It usually means the lender has written your account off or sent it to a collection agency.
Any number higher than 1 will likely hurt your credit score. The worst rating you can receive is 9. It usually means the lender has written your account off or sent it to a collection agency.
Each of your credit accounts will have one of these codes. The codes can be different depending on
how you make your payments for each account.
For example, if you have a credit card account that you paid on time, it will be reported as “R1.” If you also have a line of credit, and you missed your payment by 45 days, it would show up as “O2.”
TransUnion Canada also uses a chart to show your history of payments over the last two years. See page 28 for an example.
For example, if you have a credit card account that you paid on time, it will be reported as “R1.” If you also have a line of credit, and you missed your payment by 45 days, it would show up as “O2.”
TransUnion Canada also uses a chart to show your history of payments over the last two years. See page 28 for an example.
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