What exactly does this mean?

%26quot;Your account is only eligible for a maximum of three payment arrangements with interest rate reduction and/or no fees during the lifetime of the account.





Please also be advised that we will report your account as closed to the credit bureau.





It is important that you do not break or cancel your payment arrangement as you may not be eligible for an additional arrangement.


This payment program temporarily reduces the annual percentage rate (APR) and monthly payment on your account.





If your account was open prior to the start of this arrangement, it will be closed and will remain closed after the end of the arrangement.


The original cardmember terms will be reinstated upon completion of the program. The default APR will be reinstated if a payment does not post to the account as agreed (see your statement for details on your APR).





If you are currently enrolled in credit insurance or debt protection, it will be cancelled.





If two agreed upon payments are missed, the arrangement will be terminated.





Additional payments may be required at the end of the arrangement to bring your account current and under the credit line.%26quot;





I%26#039;m trying to set up a payment arrangement to attempt to get a credit card that%26#039;s past due and over the limit back on the right track. Will this hurt my credit score severely?



Per your update, if you read this arrangement it states:





%26quot;If your account was open prior to the start of this arrangement, it will be closed and will remain closed after the end of the arrangement.%26quot;


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By accepting this arrangement they will be closing your account.





Your credit has already been seriously damaged at this point by being past due and the fact that the card has been closed by your credit card company.





I%26#039;d ask your creditor the following: has this card been charged-off as bad debt? It%26#039;s important to know if they%26#039;ve taken this step. If they have, then you need to realize that the damage to your credit has already been done there is no undoing it. If the account has been charged-off, then focus on negotiating a settlement like 50%.





If it%26#039;s not been charged-off, then try to not let this happen as it really hurts your credit and there is no undoing the damage when this happens. If your financial situation does not improve, then contact your local Red Cross for a referral to the local Consumer Credit Counseling Services (CCCS) in your area. They can negotiate much lower payments and interest rates. Good luck!




CatDad is correct.





The payment arrangement is a good step to take. Once you have completed the terms, your card may be re-opened.





They will also change the report on your credit from Closed/Charged-off back to Pays as Agreed, though the past due noticed will still show.


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