What Does “Too Few Accounts Currently Paid as Agreed” Mean?

4 min read

Last Updated: June 19, 2024

Table of contents

Key Takeaways

If “too few accounts currently paid as agreed” appears on your credit report, it doesn’t necessarily mean you haven’t paid your bills.
There may be steps you can take to positively impact your credit score.
Payment history, length of credit history, and credit mix contribute to your overall credit score.

Have you heard of the comment “too few accounts paid as agreed” (or sometimes “pay as agreed”) on your credit report? If you have, it usually means one of two things:

There are late payments or unpaid accounts in the credit report
There aren’t enough credit accounts that can demonstrate being paid as agreed

If you’re currently making payments on your existing credit accounts, this can still appear if you have a history of missing payments. Late payments can remain on a credit report for up to seven years. This includes all credit cards, loans, mortgages, or other credit lines. Lenders use your ability to pay on time to gauge your creditworthiness.

There are things you can do to improve your credit in other ways to counteract the damage from missing payments.

What might help your credit if “too few accounts currently paid as agreed” appears on your credit report?

Pay your bills in full and on time

There are five main categories used to calculate credit scores, and each carries a different weight. These categories include payment history, amounts owed, length of credit history, credit mix, and new credit. Payment history typically accounts for the highest percentage of your credit score, so paying your credit bills on time can have the biggest impact.

Do you find keeping track of your credit card due dates a challenge? Consider signing up for automated bill pay. Using a tool like DirectPay by Discover^® could help you avoid missing payments and minimize the chance of late or missed payments being reported to a credit bureau.

Reduce your credit utilization ratio

The amounts owed category accounts for the second biggest percentage of your credit score. You might also see this listed as your credit utilization ratio. This ratio looks at how much you owe against how much credit you have available. Experts like the Office of Financial Readiness suggest a credit utilization ratio of 1-10%.

How do you calculate your credit utilization ratio?

1. Add up the outstanding balances on all your revolving credit accounts (your total revolving debt)

2. Add up the credit limits on all your revolving credit accounts (your total revolving credit)

3. Divide your total debt by your total credit limit

4. Multiply the remainder by 100 to arrive at your credit utilization ratio percentage

For example, if all your credit lines add up to $10,000 and your total debt across them is $3,000, your credit utilization ratio is 30%.

Keep your credit accounts open

How long you’ve been managing credit can tell a how well you’ve been managing your credit limits and debts over time. This could mean that a more extended credit usage history may contribute to a good credit score. Even if you’ve paid off a credit card and don’t intend to use it much, it may be a good idea to keep that account open, especially if it’s your oldest account.

Maintain a healthy mix of credit

Credit scores also consider the different types of credit you have, like credit cards, retail accounts, mortgage loans, car loans, and installment loans. This is known as credit mix. While it may be helpful to have more than one type of credit, you don’t need every type. Be cautious before considering a buy now pay later plan, as the credit reporting regulations are different for each program and may not help your overall credit score.

Consider opening new credit lines

A new credit line can contribute to your credit score because you have more credit available. Beware of opening too many at once; it can be seen as a risk for creditors. This is particularly important those with a brief credit history.

Did you know?

A secured credit card could be a good option for those with a limited credit history or those seeking to rebuild their credit history. Consider the Discover It^® Secured Credit Card.

Learn More

The bottom line

Improving the status of your credit report and credit score takes time. If you’ve only had credit for a short while, you may have to wait it out. As time passes and you build a longer credit history with a broader mix of credit types, “too few accounts paid as agreed” may eventually stop surfacing as a reason why your credit score is not higher.

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