Jimellow

I bounced a check earlier as a result of someone cashing a check from four months ago, today.

I didn't have overdraft protection, and the bank charged me a nice $25, but I'm more concerned about whether a bounced check will negatively impact one's credit rating.

Thanks.

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Elphaba

A one-time or rare overdraft will not alter your credit rating. Repeat offenses would likely cause the bank to close your account and that could spell trouble. Hubby gets slap happy with his debit card and has caused a few overdrafts over the years, but our credit score remains high.

SirLance

Not directly. Make a habit of it, though, and your bank may close your account.

Indirectly, in one of two ways:

1. You wrote the check to a creditor that reports to a credit reporting agency, and you do not make the check good prior to the due date. This would harm your credit rating in that you would be reported as having a late payment.

2. You wrote the check to an entity that does not report to a credit reporting agency, but that entity sends the check to a collection agency that does report. You'd then have a collection on your credit report. However, they'd need your social security number.

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iccky

What it can do is land you in the Chex System database. This is sort of a credit bureau for deposit accounts. If your bank participates, any overdraft can be reported to Chex System and will remain on your report for five years. Once you have a record, it can be very hard to open a new checking account.

wolf

Also if you don't clear up the bounced check with the retailer you can be arrested.

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