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Mortgage Agent Licensing Practice Exam · Question

When reviewing a credit bureau report, an R1 rating typically indicates which of the following regarding a revolving credit account?

An R1 rating signifies that the debtor pays their revolving credit account within 30 days of the due date or is not past due. This is the most favourable rating

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Question: When reviewing a credit bureau report, an R1 rating typically indicates which of the following regarding a revolving credit account?

Answer options:

  • Payments are 30 days past due ✅ Account is paid as agreed (revolving)
  • Account is paid off
  • Account is in collection

Correct answer: Account is paid as agreed (revolving)

Explanation: An R1 rating signifies that the debtor pays their revolving credit account within 30 days of the due date or is not past due. This is the most favourable rating for revolving accounts, indicating responsible credit management.

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