Arrears
Debt, arrears & collectionsA situation where payments are overdue and you are behind on what you owe.
Overview
Being in arrears is more serious than a single late payment.
Lenders may report arrears to credit agencies and take further action.
Why it matters
- It can significantly reduce your score.
- It can limit access to new credit.
- It may lead to defaults if unresolved.
FAQs
Is arrears the same as default?
No. Arrears means you are behind, while default is usually a later, more serious step.
Can I recover from arrears?
Yes. Getting payments back on track can help rebuild your profile over time.
Related terms
Take control of your credit health
Get the complete credit toolkit — all features included.
Start building creditInstant setup. No credit check. Cancel anytime.