How does my overdraft affect my credit?
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I went overdraft about 4 months ago, and I won’t be able to get out of it in the near future. How bad is it to my credit score?
Overdraft is not reported to the credit bureaus
Overdraft in itself is not reported to the credit bureaus. In itself it has no effect on credit scores, and it doesn’t show up on your credit report.
Only if you fail to pay back, the bank may close the account and turn it over to collection. Then it will go on your report and will have a negative impact on your credit score.
If you continue to regularly overdraft your account, the bank may even close the account and report you to ChexSystem. You will then have problems opening a new bank account.
Keep in mind that over drafting is bad for you. It means that you’re spending more than you can afford to. You need to figure out why you are over drafting and adjust your spending.
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