When reviewing a credit bureau report, a mortgage agent notes an R9 rating on a revolving credit account. What does this rating primarily indicate?

Question: When reviewing a credit bureau report, a mortgage agent notes an R9 rating on a revolving credit account. What does this rating primarily indicate?

Answer options: ✅ The account is seriously past due, or has been sent to collections, or is a charge-off.

• The account is 90 days past due but still active.
• The account has been paid off and closed satisfactorily after 9 months of active use.
• The account is new, with less than 9 months of payment history.

Correct answer: The account is seriously past due, or has been sent to collections, or is a charge-off.

Explanation: In the Canadian credit reporting system (R-ratings for revolving credit), an R9 indicates a severe delinquency, meaning the account is significantly past due, has gone to collections, or has been written off as uncollectible. This is a critical indicator of high credit risk.