Is There a Credit Report for Bounced Checks?
Wednesday June 21, 2006
Readers often ask what happens if you bounce a check. Will it affect your credit score? The answer is no, but you should still avoid writing rubber checks. ChexSystems tracks and reports people who have had trouble in the past, and some banks will deny you an account if ChexSystems has bad information on you.
Comments
Yes, a bounced check can appear on your credit report if the original merchant (Store) that you wrote the check to sells your debt to a collection agency that agency then in turn reports it to the credit bureau and it remains for 7 years. Now if this happens to you dispute the debt with the three credit bureaus right away and then they give the collection agency 30 days to respond with proof that it is your debt, which they usually can’t do; Then the bureau will take it off your credit report.