R9 vs. R5 rating - much difference?

Discussion in 'Credit Talk' started by laurie33, May 2, 2002.

  1. laurie33

    laurie33 Well-Known Member

    I recently paid off all but $100 of an old Citibank charge off and they changed my rating from R9 to R5 (without my even asking too!). I'm just wondering if that's any better or not much. I know it's still a derog and hopefully it will go away after a few disputes but just in case it doesn't.....
     
  2. erik776

    erik776 Well-Known Member

    Much difference yes.

    EQUIFAX CODES (note, these are the new codes)

    R = Revolving (payment amount variable.

    STATUS TIMELINESS OF PAYMENTS
    0 Approved not used; to new to rate
    1 Paid as agreed
    2 30+ days past due
    3 60+ days past due
    4 90+ days past due
    5 Pays or paid 120+ days past the due date; or collection account
    7 Making regular payments or paid under wage earner plan (WEP) or similar arrangement
    8 Repossession
    9 Charge off to bad debt

    R5 is 120 day late. A R9 is charged of to bad debt. As far as the difference in score goes, who knows. It depends on how long ago it was and many other factors but the change might be worth, this is just a guess, 15 points.
     
  3. Nave

    Nave Well-Known Member

    My sarcastic side has to say it...difference between R9 and R5 is 4.
    I am so sorry...I just had to. You see the R's cancel out...:)

    -Peace, Dave
     
  4. mindcrime2

    mindcrime2 Well-Known Member

    Maybe someone can confirm this:

    Could a R-5 status look to other creditors that you're still paying on this debt, and/or you're paying late at that?
     
  5. Nave

    Nave Well-Known Member

    Not likely... it says Pays now 120 or has paid 120 days late.

    R5 Bad voodoo

    -Peace, Dave
     
  6. star

    star Well-Known Member

    it may go to an R1 eventually, my citi charge off did after it was paid and I never asked them to do it
     
  7. KHM

    KHM Well-Known Member

    I had an R9 with Cap one in 98, when I found creditnet I PFB'd Mr Cooke and because I had settled the account the best he could do was change the rating to an R5. What a WORLD of a difference, especially for those creditors that DONT use the score.

    I can't remember my score change exactly but it believe it was an average of about 25 points, not a huge difference I'm assuming because of the age of it, but still a positive difference. Mind you, this acct also states "settlement"

    That was the only "issue" with my credit for the CU yesterday, she said late pays are not a factor if the are over 1 year old, and even the 120 day late status was not the issue, just the settlement notation.
     
  8. Alex_I

    Alex_I Well-Known Member

    I have an MBNA account that has a settlement notation.. I settled that account but have never been late at any point before the account was settled.. The account is listed as "R1" in Equifax and Never late in Experian and TU.. However the settlement notation exist in all of them. It's my only negative and it is one of my score factors.
     
  9. erik776

    erik776 Well-Known Member

    mindcrime2

    Q "Could a R-5 status look to other creditors that you're still paying on this debt, and/or you're paying late at that?"

    It can be difficult to see if a account is closed. With Equifax, a credit card is closed if you see:
    ACCOUNT CLOSED BY CONSUMER
    ACCOUNT CLOSED BY CREDIT GRANTOR
    CLOSED ACCOUNT
    BANKRUPSY CHAPTER 7

    Their may be others but these are the ones I am aware off.

    If it says

    CREDIT CARD
    AMOUNT IN H/C COLUMN IS CREDIT LIMIT

    or

    AMOUNT IN H/C COLUMN IS CREDIT LIMIT

    then it is an open account.

    Remember that late payments drop off an account in seven years whether you close the account or not.
     
  10. laurie33

    laurie33 Well-Known Member


    Mine used to say charged off and closed account. Now that I paid the $900 it shows a $100 balance, says 120+ days late (R5 rating now rather than R9). BUT it doesn't show closed account any more. The DOLA is still from '97 so I'm not sure what's going on here. Supposedly that last $100 is going to be written off by the 15th as part of our "settlement". So then will it report as "settled"?
     
  11. erik776

    erik776 Well-Known Member

    Did they change the "Date of Last Activity. What is the "Date Reported". They may have done a bad thing known as re-ageing the account.
     
  12. laurie33

    laurie33 Well-Known Member

    The last activity date is still 1997, the date reported is 4/2002. I think that's right isn't it? It's supposed to update to $0 later this month, but in the meantime I don't want it to look like I'm currently 120 days late on something. If I had known, I would have just paid the stupid extra $100 just so it wouldn't look that way!
     
  13. erik776

    erik776 Well-Known Member

    Well that's good. If the date of last activity is 97, the account is five years old and wont have that much impact. Now if you can get them to turn in into a R1 that would be something. Check out this letter:
    --------------------------------------------------------------------------
    Date:
    Creditor Address
    City, State, Zip


    Re: Account Number


    Dear Sirs:


    This letter is an offer to amicably settle the above account. It is not to be construed as an acknowledgment of my liability for this debt in any form.


    I will pay your company the amount of $____ as full settlement of this account.


    If you accept this agreement, I will send you a money order or certified cashiers check for the settlement amount of $______ in exchange for a full deletion of all references regarding this account from my credit profile and full satisfaction of the debt. This agreement is binding and will be void should you not hold up to your end of the agreement. Furthermore the debt will be deleted from my credit profile at all three credit bureaus or the bureaus your company regularly reports to in the course of doing business.


    If you agree to the above, please acknowledge with your signature and return a copy to me. Upon receipt of this signed acknowledgment, I will promptly send you a money order or cashiers check in the amount stated above.


    Notice: This agreement is restricted. This is not a renewed promise to pay but rather a restricted settlement offer only. By not signing below, you agree that the debt has not been renewed nor has any concrete written agreements been exchanged.


    Creditorâ??s Authorized Signature: _____________________________ Date:____________


    Name Title :
    Sincerely,



    Do not sign or date letter (This is necessary to avoid renewing the debt, should the creditor refuse to agree.)
    ------------------------------------------------------------------------------
    Good luck.
     

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