During my 2 years of having a checking account, I have occasionally overdrawn from it. As bad as this sounds, I%26#039;m somewhat glad to say that I have always been quick to restore my checking account to a positive balance as soon as I have realized that it was negative.
I know that if this becomes a habit, it will really hurt me in the long run. But will these few occasions of being overdrawn hurt my credit score? To my knowledge, I don%26#039;t think it would be a problem unless I return my checking account to a positive balance and pay the overdrawn fees right away. And also, wouldn%26#039;t have I do something stupid like not pay up debts for a long period of time for the bank to report me to collections?
Any info would be appreciated.
Will overdrawing from my checking account affect my credit score?
your fine don%26#039;t worry yourself, first off the bank will send you a letter, several actually until you bring your account back into the positive, this does not go onto your credit report unless you do not pay the overdraft and the bank fees, than they will close your account and charge you penanlties fees, send you few dozen more letters, and eventually after many many months they may actually report you to the credit bureau. Banks don%26#039;t want to do this, they want your business, most banks will let you stay negative because they can charge you a daily fee, make money of you. Don%26#039;t make a habit of overdrawing just not worth paying the fees. If you are still concerned about your credit you can get FREE (yes it is really free) government credit report once per year from the 3 credit unions. here is the web site https://www.annualcreditreport.com
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