Canadian Credit Score - How Does it Differ From a Credit Rating?

Canada and the United States share many things indue date, but not more than 20 days, or four
common. However, there are some seriouspayments past due Pays (or paid) in more than 90
differences in how credit scoring is carried out in thedays from payment due date, but not more than 120
two neighboring countries. Although credit scores aredays, or four payments past due
three digits in both Canada and the United States andR5 Account is at least 120 days overdue, but is not
range from 300 to 900, Canada has a system ofyet rated "9"
credit ratings.R6 This rating does not exist.
Canada's Office of Consumer Affairs (CCOA) listsR7 Making regular payments through a special
these credit ratings as follows:arrangement to settle your debts
R0 Too new to rate; approved but not used;R8 Repossession (voluntary or involuntary return of
R1 Pays (or paid) within 30 days of payment due datemerchandise)
or not over one payment past dueR9 Bad debt; placed for collection; moved without
R2 Pays (or paid) in more than 30 days from paymentgiving a new address or bankruptcy. Other rating
due date, but not more than 60 days, or not more thanindicators that might be found on a report are "I" for
two payments past dueinstallment credit or "O" for open credit line.
R3 Pays (or paid) in more than 60 days from paymentConsequently, in Canada, one might receive a three
due date, but not more than 90 days, or not more thandigit Canadian credit score as well as a two digit credit
three payments past duerating. If one is going to do business in Canada, one
R4 Pays (or paid) in more than 90 days from paymentneeds to be aware of these vital differences.