Bank Account Overdrafts

Question

I have overdrafted $70 in my account and it has been sixty days, I have not paid it because I have been looking for a job for two months. But, as soon as I get a job I will pay it off. I don't want bad credit, I have been doing good so far, will it give me bad credit, and if it does how long will it take to get off my credit?

Answer 1

As the other answers have hinted you should really try to work something out with your bank. Maybe sell some personal property, borrow money from a relative. If you let it go for too long it may get put on your credit report. Sometimes banks report them to bureaus, sometimes they don't. Again this is on the banks end. If you let it go for much longer the can and will write it off and sell it to a collection agency. Once the collection agency has it they also have the option to put it on your credit report. If it goes on your credit report it will stay on there as a collections account for seven years from the first day the debt became deliquent. Well there are ways to deal with collection agencies, it's best to not let it get to that point. At the minmum the bank will report you to chex systems. Chex Systems isn't a nation wide credit bureau, but rather something almost all banks run your name through when you go to open a new bank account elsewhere. If they find your name on there it can make it pretty much impossible to open any new bank account for three years. While all banks deal with people chex systems differntly you will find it not a good expierence. Again call your bank and work something out before any of this happens.

Answer 2

I am hoping you have contacted the bank by now. At this point they could charge off the account and report you to a company called Checksystems. This company keeps records of checking account charge offs.

Not only will it appear on your credit as a charge off, but you will find id nearly impossible to get a new checking account for at least three years.

Please call the bank and work out arrangements. If you don't, they will close  your account without blinking any eye..then the problems just start

Answer 3

I don't think it will show up on your credit report, however, if your bank charges a monthly fee, they'll keep charging you every month, and dinging you with an overdraft charge every timee you don't have the money to pay the monthly fee, probably an additional $25 bucks plus the fee (depends on the bank).  Find out whats going on with your bank. Are they charging this? How can you stop it? Etc.

Answer 4

depending on the financial institution the fees could continue to accrue...so I would go in and talk to them...if you have any good friends/family members that could loan you the money...now would be the time to ask..esp since it's still less than a $100 bucks. having a negative balance DOESN"T affect your credit score as it stands right now...but in the event you actually leave it negative for too long...each institution and circumstance is different in timing of this happening, but if it becomes "charged off" it big time hits your credit and will prevent you from opening checking.savings.cds.credit cards.loans. ect elsewhere for quite a long time, so consider other funding options fast!!!