Credit Rating Scale

The credit rating scale tells lenders if applicants are a high or low risk for lending purposes. A scale gives lenders the same information as a score, but displays the information differently. A credit rating score scale is a two digit code that begins with either a R or an I, and it ends with a number from 0-9. So a credit rating scale figure would range between R0 or I0 to R9 or I9. If a scale ends in zero, it means there is little or no history. If ending in a number from 1 to 4, that means that bills are paid back in the number of months indicated by the numeral. If ending in a 5-8, this is a code to the lender that difficulties are noted in repaying debts, or it has been paid back by consolidation or repossession. If a scale ends in a 9, it indicates a bad history.

There are two immediate reasons that these numbers are so important. The first one deals with the physical world in which we live. People live on credit. They make large purchases with a credit card, buy online, earn miles and manage their budgets by paying from one source. If a credit rating scale is destroyed by making late payments, avoiding payments, or overextending limits, there will be difficulty in finding financing when it is really needed, such as a home or a car is to be purchased. It's very important to maintain a good credit rating score scale so that when it's necessary to borrow money for investments such as a home or business, financing will be attainable.

The other reason to maintain a good record is written specifically to Christians. Without going into any deep theology, we could make the case that to neglect bills is a sin. The commandments to not steal and not lie cover the broad subject of repayment. A credit rating score scale tells the bank, or other lenders, if there has been any deception or if it is likely that bills will not be paid, which is the equivalent of stealing. Remember, the scorer simply looks at the history of making timely payments and assigns the payment history a number. If this indicates that a high risk because there has been delinquencies in paying bills, that is a testimony to one's character. The credit rating scale not only tells banks what kind a borrower they may be dealing with, it also is a good gauge of a person's character. God is clear that we are to honor our debts. "Thou shalt not defraud thy neighbour, neither rob him: the wages of him that is hired shall not abide with thee all night until the morning." (Leviticus 19:13)

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