does a bounced check affect my credit score?

Answer 1

It will only affect your credit score if it is reported to one of the three major credit bureaus . Experian, Equifax or Transunion.

It can only be reported by someone who has an account with them. Most only have an account with one or two. Membership with those companies is expensive and you have to be a creditor , collection agency or bank of some sort before they will let you join. Its not easy.

So, most businesses refer their unpaid debts (ie your bounced check) to a third party collections agency.

These business can purchase your debt from the original company, or they can represent the company and collect on their behalf,. Usually the later. In this case the collection agency makes a commission off of the collection, or they add a charge to what you owe.

If you fail to pay the debt or rectify the bounced check they have the authority to report it to a credit bureau.

Your Credit score is calculated by using a secret (seriously) formula. However, most analysts agree its based on the following;

850 Pts is about the max for most score, so out of those 850 points your score is broken up as follows;

35% = payment history
30% = amount owed
15% = Length of credit history
10% = Types of credit used
10% = any recent applications for credit, or new credit

As you can see 35% is based on your payment history. So, a bounced check is pretty bad. Although not nearly as bad as late payments on existing credit, or delinquent accounts. Especially if the check shows as "paid", meaning it bounced, they reported it, then you paid it.

Answer 2

Normally not....The only way is if the bounced check(s) eventually leads to a judgment against you. Judgments will be noted in the pubic records section of a credit report and your credit score would take a hit. Don't mess with bounced checks.....If you end up in the bad check system you'll have trouble getting bank accounts. ...Even a small bounced check for $20 that is never paid can cause this problem

Answer 3

I don't see how it would affect your credit score, assuming you make it good and pay any fees.

On another subject: you should know that the banking industry exchanges information on problem customers. If you do this once in a great while, nobody cares, but if you make a habit of it, you might find yourself blacklisted and not be able to open a new bank account at some time in the future.

Answer 4

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Every check you write is an exercise in establishing your credit. You are, in essence, writing a promissory note that says you have enough money in the bank ("credit") to pay the person accepting the check. Many (but not all) banks do report bad checks. Writing a series of them can get you a downgrade that will last several years.

Answer 5

a bounced check will affect your credit score if you do not pay for it - they will sell the check to a collection agency thus they will report it on your credit file in turn your score can drop dramatically - pay the check as soon as possible and keep all receipts for the check

if it winds up on your credit file - send all docs to the credit reporting agencies so that they can dispute and or remove the collection from your file as you paid it in full prior to collection activity.

Answer 6

It will affect your social life

Answer 7

NO BUT IT CAN BECOME A PROBLEM IF YOU KEEP DOING IT IN MOST STATES IT CAN BECOME A CRIMAL OFFENCE

Answer 8

yes they do they can be a real nuisance on the acct.

Answer 9

Sure it will.