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Information on an Account in R9 Status - The Bills.com Blog
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Information on an Account in R9 Status
Question: I had a credit card debt sent to collections which I recently paid off. I now have an R9 rating. How do I get rid of it?
Answer: The “R9" account status is a code used by some consumer credit reporting agencies to indicate a revolving credit account which has been “charged-off” by the creditor. “Charge off” is an accounting term used by creditors, meaning that a creditor has transferredan account from its “accounts receivable” books to its “bad debt” ledger; credit issuers are required to do this by the federal Office of the Comptroller of Currency, in an attempt to prevent banks from inflating future earnings statements with old and defaulted accounts. For the consumer, the only real consequence of an account charging off is that the account will report as a negative item on the consumer’s credit reports.
Resolving the charged off account appearing on your credit report should have a positive impact on your credit rating. The past delinquency
will not be removed from your credit report, but it should reflect a $0 balance on this debt. While the past delinquency and charge off will continue to negatively impact your credit rating, the impact should be much less if you resolve the outstanding balance. Resolving this account should remove an outstanding balance from your credit profile, and it will reduce your “debt to available credit ratio,” which should also have a positive impact on your credit rating.
You should keep in mind that you cannot just "get rid" of this item on your credit report,
as it will be reported for about 7 years or more even after the fact that you paid it off. I am aware that many firms do claim that they can get these items removed, but if the entry was genuine, I doubt that it will be removed. I encourage you to read more about credit repair at: Credit Repair Article , which lays the facts down.
I hope that the information I have provided helps you Find. Learn. Save.
Best,
Bill
www.bills.com/blog/
Also, make sure to get a free financial health check-up with Bills IQ!
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1. Posted by Alex on Friday 22nd August 2008 00:42
I have a $1200 debt and on my report it says that estimated date that this item will be removed 11/2008. is it really going to be removed completely? what should I do ??? Thank you in advance !!!
2. Posted by Bill on Friday 22nd August 2008 09:05
Entries on credit reports usually fall off after 7 years. Any debt that is showing past due on your credit report is hurting your score. You should try and get this resolved.
3. Posted by Sandra on Monday 25th August 2008 08:19
Is it true that banks work together and can locate you even if you did not provide a new address? Thank you.
4. Posted by Bill on Monday 25th August 2008 09:05
Banks have many methods that they use if they ever want to find out information about you. These days, all information is tracked electronically, and if they put their mind to it, I am sure banks have resources and means to get information.