A tradeline shows 'Paid as Agreed' but has a balance that has remained exactly the same for 18 months on a credit card account. What does this most likely indicate?
Correct Answer
B) The account may be in a hardship payment plan or settlement
When a credit card balance remains static for an extended period while showing 'Paid as Agreed,' it often indicates the account is in a hardship program, settlement arrangement, or the card has been closed with a payment plan. This requires further investigation during underwriting.
Why This Is the Correct Answer
When a credit card balance remains static for an extended period while showing 'Paid as Agreed,' it often indicates the account is in a hardship program, settlement arrangement, or the card has been closed with a payment plan. This requires further investigation during underwriting.
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