Too Few Accounts Currently Paid as Agreed Meaning

If you have checked your credit report, you may have noticed a note stating that you have too few accounts currently paid as agreed. We will discuss what this notation means, as well as what you can do to have it removed.

What Does Too Few Accounts Currently Paid As Agreed Mean?

If you’re getting a notification stating that you have too few accounts currently paid as agreed this means that you simply don’t have enough open accounts, such as credit cards, auto loans, and/or mortgage based upon which the credit reporting bureaus can calculate your lending risk. Alternatively, this notation can be used to refer to the fact that you have missed payments on some of your accounts and therefore don’t have enough accounts that you’ve made payments as originally agreed upon between you and your creditor.

If this notation has appeared on your credit report, one way to have it removed is to maintain open accounts and make timely payments on your accounts.

If you have too few open accounts, you should open additional accounts and make timely payments on such accounts to have this notation removed from your credit report.

The best way to remove this notation is to keep your accounts open for as long as possible and that you make timely payments. This establishes a positive credit history for you, which should result in the removal of this notification from your credit report.

How to Improve Your Credit & Remove The Too Few Accounts Currently Paid as Agreed Notation From Your Credit Report?

We will now share a few tips that should assist you with improving your credit score and removed the “too few accounts currently paid as agreed” notation from your credit report:

  1. Make Timely Payments on Your Accounts – Your payment history accounts for 35% of your credit score, so making timely payments on your open accounts should not improve your credit score but should also assist with having too few open accounts notation removed from your credit report.

  2. Open New Accounts – To remove the notation from your credit report, you should open an account or two and make timely payments on them. This should help you establish a positive credit history over multiple accounts, which should assist you with having the notation removed from your credit report.

  3. Improve Your Credit Mix – Your credit score partially depends on having a good mix of accounts, such as credit cards, auto loans, mortgages, and student loans. So, if you want to improve the thickness and diversity of your credit file, you should open different types of accounts. This will help your credit score and assist you with removing the too few accounts currently paid as agreed notation from your credit report.

  4. Keep Old Accounts Open – It may be tempting to close old accounts, but if you want to improve your credit score and strengthen your credit profile, you should keep old accounts open, especially if they’re in good standing because you’ve made all your payments on time. This improves your average account age, which will boost your credit score and improve your credit profile.

  5. Reduce Your Credit Utilization – Your credit utilization makes up 30% of your credit score. Credit utilization refers to how much of your available credit you’re using. The lower your credit utilization, the better your credit score. As a rule of thumb, you should not use more than 30% of your available credit. Ideally, you want your credit utilization to be between 5% and 10% of your available credit. For example, if you have a $10,000 credit limit, you should never leave a balance of $3,000 or more on your credit cards. Ideally, your balance should be between $500 to $1000.

  6. Keep This Up For a Long Period of time – To improve the thickness of your credit file and remove the too few open accounts notation, you must follow these tips consistently for a lengthy period of time. The longer you keep your accounts open and the longer you continue to make timely payments on your accounts, the stronger your credit profile will become.

How to Easily Fix The “Too few accounts paid as agreed” Notification On Your Credit Report?

This error has a simple fix, you must open a few accounts and you must make all of your payments on time. If you either have too few open accounts that you’re making payments on or you have accounts that you’ve missed payments on, this notification will continue to appear. So, bring your accounts current and pay all of your bills on time and you should no longer see this notification.

Credit Score Planet Frequently Asked Questions

1. What does account paid as agreed mean?

The term “paid as agreed” is something that you always want to see on your credit report because it means that you have been paying off your debt as originally agreed upon between you and your lender or creditor.

2. Does your credit score go up every time you make a payment?

Your credit score will not necessarily go up every time you make a payment. However, establishing a positive payment history across a number of accounts will definitely improve your credit score.

3. How does too few accounts paid as agreed affect credit score?

Having too few accounts paid as agreed means that there is a ton of room for you to improve your credit score. Essentially, this notification is telling you that you don’t have enough history of paying off your accounts, so opening accounts and keeping old accounts open while paying off your debt in full and on time will improve your credit score.

4. Will paying off my accounts help my credit score?

Yes, paying off your accounts on time and in full will improve your credit score.