Understanding Credit Rating With EzeeCarCredit!

Are you a person who does not completely understand the importance of a credit rating? Possibly, you think it is only relevant when applying for credit cards or loans. At ezeecarcredit, we stress the significance of a credit bureau’s assessment of an individual or company’s creditworthiness. A credit rating provided by a credit bureau is the lender’s guide to estimate the overall eligibility of a person, business, corporation or sovereign nation to borrow money or receive goods and services. Lenders want to see how credit worthy you will be. As a valued consumer and client of ezeecarcredit, it is important you recognize how a credit rating can limit your access to financing pre-owned cars or used trucks and your auto purchase power!

Stay Informed about Your Credit Report When Applying for Pre Owned Cars!

Today’s business connects quickly and moves fast! Globalization of the world market demands a reliable, uniform method for vendors and lenders to evaluate prospective customers and to make wise financial decisions. Credit ratings provide a functional standard for creditors to easily access credit information and make determinations for financing on an international scale.

Your credit rating is based upon your credit report and credit score. Although these terms are often interchanged, they are not the same. A credit report involves your current credit history, credit balances, any delinquent account payments, bankruptcy, creditor inquiries and personal information. On the other hand, your credit score is the three-digit number that reflects the information contained in your credit report. FICO is the leading provider of credit scores that range from 300 to 850. The majority of people are in the 750-799 range at 28% of the population; 700-749 at 20%, and; 650-699 at 16%. Without exception, an excellent credit report will create a high credit score!

Find Out About Your Installment and Revolving Credit Score!

Canada, the US and most of the remaining countries in the world use a scale of 0-9 to rate your personal credit along with your FICO score. This scale includes a number with one of two letters before it; an R or an I. The letter “R” represents Revolving Credit and is applied to credit that automatically renews itself once the debt is paid off, such as, credit cards. The letter “I” represents Installment Credit and is applied to mortgages and auto financing.

Installment and Revolving Credit Scale:

  • R0 or I0 – You have no credit history or insufficient data to make an accurate prediction of your credit risk.
  • R1 or I1 – Your credit is paid within 1 month.
  • R2 or I2 – Credit paid back within 2 months.
  • R3 or I3 – Credit paid back within 3 months.                                              
  • R4 or I4 – Credit paid back within 4 months.
  • R5 or I5 – You did not pay back your debt within 4 months but are not at a “9” yet.
  • R7 or I7 – Debt payments are submitted under consolidation.
  • R8 or I8 – Debt was paid by repossession to sell the item.
  • R9 or I9 – You officially are in default (bad debt) and the debt is perceived as uncollectible.

ezeecarcredit underscores the single most important factor that affects your credit rating! Make complete payments on time toward your debt every time!! Our experienced team can tailor car loans to get you back on track with a credit building payment plan.