A credit question: Bounced check.
I received this question by email: Does a bounced check affect your credit rating?
Answer: There is a high probability it will. Although merchants that you wrote the check to may not report the check to the bureau there are two reasons it may affect your credit.
1- If it the check was to pay a required monthly payment, the payment may show late or unpaid.
2- People often don’t get the check resolved in time to avoid collection. Now you have both a late and a collection. Real damage to your score occurs. The collection effects last longer and are greater than a late payment report.
Thanks for the question, I hope it helps you and others.
Larry Cragun
