When you review your credit report from one or all of the major credit bureaus (Equifax, Experian, and TransUnion), you may notice that some of your accounts say, “paid as agreed.” If you’ve seen this, you may be wondering “What does “paid as agreed” mean on my credit report?”
The phrase “paid as agreed” simply means that your performance as a borrower agrees with what the lender expected of you. You’ve paid on or before your due date, and you’ve paid at least the minimum amount due.
Too Few Accounts Paid as Agreed
Another phrase you may see on one of your credit reports is “too few accounts paid as agreed.” This statement doesn’t necessarily mean you’ve made any late payments, because you may see this phrase even if you’ve never paid a bill late. It also doesn’t mean that you haven’t paid the correct amount due on any loans or credit cards that you have.
You may see the phrase “too few accounts paid as agreed” if you have a limited credit history. In the world of credit, limited experience borrowing money is just about as bad for your credit as not paying your bills on time.
The Impact on Your Credit Scores
Paying all your accounts as agreed can help your credit score since your payment history is a big part of what goes into determining a credit score. Your credit score is based on a combination of factors including:
- Payment history
- Credit history length
- Credit mix
- Amounts owed
- Number of new credit inquiries
Even one late payment can hurt your credit score. Missed payments, too many inquiries in a short amount of time, and using too much of your available credit are all things that may bring down your credit score.
Bringing up a Low Credit Score
If your credit score isn’t where you want it to be, you’ll need to work by being proactive about bringing your score up. Always pay all your bills on time so that your credit report will reflect that you pay as agreed. If you have a lot of debt, work toward bringing down the amount you owe. A rule of thumb is that the balance on revolving credit accounts should stay below 30 percent of the available amount.
You may be surprised to learn that your credit score might be lower than you think it should be because of inaccuracies on your credit report. Errors on credit reports are more common than most people realize. When you review your credit report, you may see errors such as incorrect balances, accounts being reported twice, or accounts showing as late when you’ve always paid on time. You may even find accounts that don’t belong to you showing on your credit report.
Disputing Inaccurate Items
Your credit report and credit score are used as tools to determine your creditworthiness, so it’s very important that the information being reported is correct. If you find errors on your credit report, dispute them immediately. You can file a dispute directly with the credit bureau. An easier approach is to take advantage of Dovly’s automated credit repair system. With Dovly as your partner, the process of bringing up your credit score and keeping it up is simple. Contact Dovly today to find out more.