This is when you have an agreement with your provider to make regular payments by the date agreed over a specific time.
If you don’t pay the amount in full by the specific date agreed, your account goes into arrears for the amount missed. Having accounts in arrears can be a sign you’re not able to pay what you owe to your lenders/providers on time.
How does this affect your score?
It might impact your credit score and the chances of providers accepting you for new credit.
What next?
Pay your outstanding debts and meet the payment deadlines. If you want to grow a healthy credit score over time, you need to make sure you stay on top of the accounts you already have.
If you think there’s an incorrect arrears in your report then contact your lender/provider to find out why this is on your credit report.