Bank Account on Negatives HELP!?

Question

My checking account is on the negatives and I have no way of paying the amount to put my account on track. I got a notice from my bank that if I dont do anything to fix my account it will be closed, but to know that this will also affect my credit, which I know its probably bad anyway. I dont really have a choice but to let my account close.Has this ever happened to you? I wish I had the money to pay the overdraft amount and close the account on good terms. How many years will this affect my credit? What else besides my credit will be affected? I dont have a job and I even if I wanted to work I cant because I just had a baby and I have no one to bay sit for me Please give me advice Please Help

Answer 1

You will be on the Chexsystem and won't be able to get another bank account.

People overdraft their checking accounts because they don't keep record of their transactions. You should post every check and debit transaction in your check register so you know what your balance is. Depending on what the bank online or ATM says is your balance doesn't take into account those transactions you made that haven't hit the bank yet.

Find a way to cover the overdraft. Sell or pawn something. Borrow from family or maybe your baby's daddy can come up with the cash.

Answer 2

It is a credit thing. If you spend too much time in the negative, a bank will deem you unsuitable to have an account with them and will stop covering you for the overdraft fees. If your account is less than $100 in the negative, I would say borrow the money from someone else, just to get your account in the clear, and then stop using it. Let it sit open so you at least have somewhere to cash your checks and you won't have to go to a check cashing place that will take out a bunch of money as a fee. That way, any money you do bring in will all be for you. If you can't bring yourself to the positive for whatever reason, you'd be better off to close the account yourself, and make small payments to them, if they'll allow it. If not, the bank may report you to some kind of collections agency who will more aggressively demand their money. Either way, you need to pay this money back and not get any more overdraft fees.

Answer 3

If you can keep them from closing your account it'll be best. What will end up happening when the bank closes the account is it will get reported to what's called chexsystem. chexsystems is like your "checking account report" Anytime you open up an account with a new banking institution they'll look over your chexsystems report and see if you have any negative information for prior accounts. Being reported to chexsystems is going to make it incredibly difficult for you to open up another bank account anywhere else. however they are far and few between but you can locate banking institutions that don't use chexsystems. More often then not they're Credit Unions, or smaller local state banking institutions. You can call around and ask if they use chexsystems to see if there's one in your area.

As far as credit is concerned. Allowing the bank to shut down your account with an amount owed will definitely affect your credit. It'll go into collections and pop up on your credit report as a collections account which is never a good thing. Any negative information will remain on your credit report for 7 years.

If you haven't already I suggest calling up the bank and pleading your story (politely however) and see if they're willing to refund any of the fees you've received to hopefully bring down the amount that you owe. After that depending on the banking institution they may or may not be able to set up some sort of repayment plan or something along those lines. Which would still be difficult regardless because you don't have a job. But discuss it with the bank and see what they can and are able to do for you so you can hopefully keep it from being closed out with a negative balance.

Answer 4

usually when people have bad times they go back to their family for help. In addition, yes, let your bank account close. Of course you would not be able to get another one until you pay off that one you closed. I don't know that that goes on your credit report but it may. If it does it will be there probably 7 years. Once you have corrected it then notify the three credit reporting agencies with proof. Sometimes if you have defaulted with one thing then if you have credit cards then the banks will demand a double payment from you. How are you paying your rent, and where is your husband? Anyway, one of the answers to your question is to pay your bills with money orders. If you can handle two babies at once then do babysitting in your home for cash..

Answer 5

I've had this happen to me, and the bank closed my account. Because of that, no other bank would give me a checking account either, now I have to cash my disability check at a check cashing store that takes a bunch of it. I'm a single mom who can't work too, I know how this feels. I'm so sorry you have to go through this crap too. Try explaining to your bank when you can get the money in there. Good luck to you.

Answer 6

Yes, this has happened to me and it does suck. they will close your account, you will be reported to check systems and you wont be able to get another checking account, depending on the state for about 7 years, it will also be put on your credit report. You should have a garage sale or post listing saying you'll babysit or something on craiglist...it free to earn the money to pay it because you really do not want this happening to you...good luck

Answer 7

I don't think it's a credit thing.

If you bounced checks, it's more like a criminal thing.
So you need to settle up with the bank, regardless if they close your account or not. They will take legal action against you.