topic Re: Too few accounts currently paid as agreed? in Understanding FICO® Scoring

Too few accounts currently paid as agreed?

Anonymous — Sat, 24 Jan 2015 20:36:53 GMT

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

Re: Too few accounts currently paid as agreed?

Anonymous — Sat, 24 Jan 2015 21:01:19 GMT

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.

Re: Too few accounts currently paid as agreed?

NRB525 — Sat, 24 Jan 2015 21:05:21 GMT

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!

Re: Too few accounts currently paid as agreed?

Anonymous — Sat, 24 Jan 2015 21:14:51 GMT

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

Re: Too few accounts currently paid as agreed?

Anonymous — Sun, 25 Jan 2015 00:02:09 GMT

@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