How bad is it for your credit to be overdrawn in your bank account for a long period of time?
Sara asked:
I went 300 dollars overdrawn because i had a medical emergency. now with all the penalty charges i’ll need 750 dollars just to get to zero. i’ll be able to do it, but it may take up to 6 weeks to get all the money to put in my account. I have ok credit and i really don’t want to have bad credit because of this.
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I went 300 dollars overdrawn because i had a medical emergency. now with all the penalty charges i’ll need 750 dollars just to get to zero. i’ll be able to do it, but it may take up to 6 weeks to get all the money to put in my account. I have ok credit and i really don’t want to have bad credit because of this.
December 1st, 2009 at 7:10 pm
Talk to your bank and explain the situation and try to pay them back as fast as possible. Yorky
December 3rd, 2009 at 7:43 pm
You’ll be reported to chexsystems for account abuse. Some institutions wont be willing to help you when you have this on your record. freed1one
December 3rd, 2009 at 9:44 pm
Most banks won’t report anything to the credit companies until you are overdrawn for 120 days. Coors
December 5th, 2009 at 7:04 am
talk to the bank about your situation to see if there is anything that they can do. This won’t ruin your credit, but it won’t be good for it. good luck. Next time you have an emergency try to take care of it another way. Annie’s Mom
December 5th, 2009 at 10:41 pm
I agree with the ones that say talk to the bank. Most of the time, if you contact them and express that you would like to pay them back, they will work out a payment plan/reduce fees/stop more fees from being added. If you don’t contact them, they’ll probably assume you want to hide from them and they’ll be more hostile about getting it back. swegner_water
December 8th, 2009 at 5:57 pm
Many banks do not look kindly on customers that overdraw their account and do not quickly pay off the overdraft and fees. After a certain period of time they will usually close the account and report you to Chex Systems making it difficult or impossible to open an account with any bank for up to 5 years. Also if they consider that you defaulted, the default will likely be reported to the credit bureaus. Mike
December 11th, 2009 at 3:49 am
Depends if you have an overdraft account and your paying on it, it wont effect your credit. If there is no over draft and your just negative in your checking, wont get reported until its 90 days past due…Just try to pay on it as quickly as possible..Hope this helps Torn
December 13th, 2009 at 11:52 pm
the bank i use offers a program called the “fresh start loan program”. it allows you to return your account back to $0 and repay the bank monthly until the full overdrawn balance is repaid with no interest. you might ask them if they do that. ellie
December 14th, 2009 at 9:08 pm
Usually the bank will send you a letter that will state how many days you have to bring your account back into the black. Typically it is 30 days.
Better talk to the bank and see if you can arrange something. My Take on It
December 16th, 2009 at 12:39 pm
You can use this credit monitoring service to pre-estimate future scores for different scenarios of such payments - creditreport.imess.net Richard