Account in arrears? Quite simply, at least one payment is overdue. You’ll know how many by the marker on your credit report.
Your account will be in arrears by the overdue amount. So if you’ve missed two payments, this will be the sum of the two payments you haven’t yet paid.
If you frequently have accounts in arrears, then you’re seen to be less of a reliable person to lend money to, as you’ve worked up a reputation of paying late.
If you’re in arrears on one account for more than three months, then you’re in danger of it becoming a default. This is classed as bad credit, so you’ll want to avoid this like the plague if you’re looking at improving your creditworthiness.
Arrears will remain on your account for six years before they drop off.