“Too Few Accounts With Payments As Agreed: What Does It Mean”?

Last Updated: Dec 04, 2022

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Lenders use a various details of your financial information on credit reports to gauge your overall creditworthiness. They decide whether you are too risky to take on as a client, based on your previous repayment activity. This does not just mean that accounts must be paid on time, but that you have enough credit history to prove that you are responsible with your finances.

What Does “Too Few Accounts Currently Paid as Agreed” Mean For Your Credit Report?

If “too few accounts paid as agreed” (or sometimes “pay as agreed”) appears  on your credit report, it indicates one of two things.

  • You haven’t made timeous payments on too many of your credit accounts.
  • Your credit history has a lower number of accounts (such as credit cards, loans, mortgages or credit lines)

Note that this message may appear on your report even if you’ve been making payments on your existing credit according to the terms of your current credit account(s).

What Might Help Your Credit After “Too Few Accounts Currently Paid as Agreed” Appears on Your Credit Report?

Pay Your Bills In Full And On Time

Your FICOScore considers five categories in its calculation: Payment History, Amounts Owed, Length of Credit History, Credit Mix and New Credit. Payment history typically accounts for the highest percentage of your FICOScore. Therefore, paying your bills on time is highly important.

Reduce Your Credit Utilization Ratio

Your credit utilization ratio accounts for a large percentage of your FICOScore. This ratio considers your available credit and how much of it you are using. It can help your credit score to maintain a low credit utilization ratio. The recommended ratio is under 30% of the available credit.

Keep Your Credit Accounts Open

The length of your credit history demonstrates how you manage your credit limits and debts since you first began using credit. Credit bureaus use this information to collect data which is used to calculate your credit score. A longer history of credit usage may contribute to a good credit score. It may be beneficial to keep that account open, just to show that you can manage your credit over a long period of time, even if you do not use it often.

Maintain A Healthy Mix Of Credit

FICO Scores also take into consideration the different types of credit you have, including credit cards, retail accounts, mortgage loans, car loans, installment loans, etc. It is beneficial to have more than one of these credit lines, but you do not need to open more than necessary.

Consider Opening New Credit Lines

New lines or means of credit access contribute to your FICO Score, but they should be handled carefully. Opening several credit accounts in a short amount of time can look suspicious, and pose a risk to credit agencies, especially if you have a short credit history. It takes time to improve a credit score, be patient, and use these tips as general guidelines on how you can improve your credit score. After a while, “too few accounts paid as agreed” may not be used as a reason for your credit score staying stagnant.

Disputing Inaccurate Items

You can dispute inaccurate data that appears on your credit report, directly with a credit bureau. If your dispute is accepted, then that negative information will be removed from your report and your credit score will improve.

Bottom Line

This statement does not necessarily mean that you have made late payments. It also does not mean that you have not paid the correct amount due on any loans or any of your credit cards.

In the eyes of credit bureaus and lenders, limited experience with borrowing money is almost in the same category as not paying your bills on time.

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