How Can a Non-Sufficient Funds Check Affect My Credit Score?

Global Check Recovery offers free check collection services to help you, the customer, recover funds that are due to you. But what happens if you are the one sending the bad check? Did you know that a bounced check can affect your credit score? So now we must understand what your normal credit score versus your bounced check credit score would look like and how it is affected by an NSF check.

A non-sufficient funds check by itself will not show up on a credit report. There are a few ways that it can lead to it being reported, which are listed below:

Bills and Credit Agencies – Paying bills is something almost everyone does. For example, if you send a check out to pay your electrical bill and it bounces, it can show up on your credit report as being late. Your normal credit score, even if it’s pristine and you’ve made every payment in your life on time up until this point, will fall and be affected by your bounced check credit score. Having good debt like student loans or a mortgage is also great for your credit if you pay on time consistently. In this instance, if a payment is missed or an NSF check is made, it will again show up as a late payment. As long as you get the account back in good standing within 30 days, you will not be reported to a credit agency.

Banks – Checking accounts aren’t considered a line of credit, but some services the bank offers that may be an add on might be; one big example would be overdraft coverage. Banks usually charge a fee to cover the money that has been over drafted from your account and the bank covers the initial withdrawal. If you do not pay the fee back within a certain amount of time, the bank can then report you to a collections agency. In turn, reporting it to a credit agency as well and showing up on your credit score.

Even though we offer free check collection and recovery services for businesses, keeping our customers informed of current market information has always been one of our top goals. Knowing what could happen in the aftermath of a bounced check credit score can be devastating. Give us a call toll free at 1-866-524-3339 with questions you may have on any and all of the collection services we offer.

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