Accepting credit cards
Question
Does a negative checking account effect credit scores?
To keep the story short and sweet, when I was a minor I overdrew my checking account and I owed the bank $150. I was unemployed at the time and could not pay the money back. I found a job and paid my debt shortly after my 18th birthday, which was a few months after April. Now I am interested in renting an apartment and, if I am accepted, the rate of my deposit will depend on my credit report. My question is, will this incident be on my credit report? Also, will the fact I was a minor when I went into debt change this? If it is on my report, is it something I should be concerned over or is it not that serious and can be easily remedied? And what else can I do to build good credit besides the obvious use of a credit card?
3 weeks ago - 3 answers
Best Answer
Chosen by Asker
No. Deposit accounts are not covered by Truth in Lending laws, so they cannot report it as an unpaid debt UNLESS you also had a "overdraft protection" which is in essence a loan that you were pre-approved for. What they can do is report you to other consumer reporting agencies like CheckSystems, which will make it hard for you to open another checking account. But if you paid it, it probably wasn't reported. Either way, your credit score is unaffected.
Source(s)
14 years in banking industry.
by Dagger_SA
3 weeks ago
Asker's Rating: 
Other Answers
This will not affect your credit unless your account was sold to a collection agency.
by Craig- 3 weeks ago
No it does affect you credit score or report . Banks do have a system for people who overdraft their checking accounts . It's only for people who never paid the overdraft or troublesome check bouncers . You should be able to get the apartment . I would not worry . Your fine . If you are habitual check bouncer you may have trouble opening up a checking account with another bank . To build good credit never exceed your line of credit 15% of your net income . keep a balance but keep it low it will show that your are in control that impresses banks . If you can build up a asset base with a mutual fund company that will also impress a bank. Get a money market account with T-Rowe Price they are good people to work with and pay higher return rate than a bank
by His Majesty- 3 weeks ago