Too few accounts currently paid as agreed?

Anonymous · ‎01-24-2015

I got my AMEX BCE in the mail today and on the approval letter there is a section that says:

The following are the key factors in your credit report from Experian that contributed to your FICO score

-Length of time accounts have been established

-Proportion of loan balances to loan amounts is too high

-Too many inquiries last 12 months

-Too few accounts currently paid as agreed

what does that last one mean? I have no late payments, and I carried a $100 balance on my Cap1 card in like october but I paid the minumum payment, then i PIF the next month. That's the only time I've ever carried a balance

Anonymous · ‎01-24-2015

This comment often means the lender thinks you don't have enough cards, or that the cards you do have have not been reporting long enough for them to judge that you have a good history of 'paying as agreed.' I would say in your case it's probably the second reason.

Let the cards you have age and then you probably won't see that as one of your reasons.

NRB525 · ‎01-24-2015

That is a "Reasons Letter". They issue that any time you didn't get the best terms.

The APR on your BCE is above 12.99%, correct? If you got 12.99% you may not have gotten this letter.

When they have to issue the Reasons Letter, they have to pick from the available list of Reason Codes to fill out that section of the letter. I think "Ax Murderer" may be in there, but haven't seen anyone say they got that Reason Code. Really, though, if you know you have no lates ever, you can disregard the item. They have to put something, and with only 3 other cards, they may have figured that wasn't 7, so "too few".

Congratulations on the BCE!

High Bal Jan 2009 $116k on $146k limits 80% Util.
Oct 2014 $46k on $127k 36% util EQ 722 TU 727 EX 727
April 2018 $18k on $344k 5% util EQ 806 TU 810 EX 812
Jan 2019 $7.6k on $360k EQ 832 TU 839 EX 831
March 2021 $33k on $312k EQ 796 TU 798 EX 801
May 2021 Paid all Installments and Mortgages, one new Mortgage EQ 761 TY 774 EX 777
April 2022 EQ=811 TU=807 EX=805 - TU VS 3.0 765

Anonymous · ‎01-24-2015

Substitute "Derogatory public record", (tax lien), for "Too many inquiries last 12 months", and I got the same list with my Everyday card.

Anonymous · ‎01-24-2015

@NRB525 wrote:
That is a "Reasons Letter". They issue that any time you didn't get the best terms.
The APR on your BCE is above 12.99%, correct? If you got 12.99% you may not have gotten this letter.

When they have to issue the Reasons Letter, they have to pick from the available list of Reason Codes to fill out that section of the letter. I think "Ax Murderer" may be in there, but haven't seen anyone say they got that Reason Code. Really, though, if you know you have no lates ever, you can disregard the item. They have to put something, and with only 3 other cards, they may have figured that wasn't 7, so "too few".

Congratulations on the BCE!

I got 16.99% APR