PERSONAL FINANCE: HOW DO YOU FALL INTO SUBPRIME? 2

In addition to the credit score (or FICO score) where a score below 600 will drop you into the subprime category, financial institutions also do a credit risk rating where a borrower is evaluated according to a scale of 1 to 9, the lower scale being the better risk and deserving of lower interest.
To the number is attached a letter modifier: R (revolving as in credit cards) or I (installment as in a house or car loan).
Numbers 1 through 6 indicate the number of months you are habitually in arrears or late in payments, the number 1 declaring that you …read more