Report Details

Does An Overdraft Hurt Your Credit?

At Experian, consumer credit and finance education is our priority. This post may contain links and references to one or more of our partners, but we provide an objective view to help you make the best decisions. For more, see our Editorial Policy.

Dear Experian,

My bank closed my account due to more than $400 in overdraft fees. I paid all I owe and re-opened my account. Will this hurt my credit?


Dear CMB,

An overdraft occurs when you use your debit card, write a check, or make an online payment using your checking account without sufficient funds to cover the amount spent. Checking accounts do not appear on a credit report, so as long as you contact the bank and take care of the balance right away, an overdraft will not automatically hurt your credit.

How an Overdraft May Impact Your Credit

If arrangements are not made to bring the account current, the bank may decide to send the debt to collections. Once a collection agency purchases the account, it could end up on your credit report. A collection account is considered a serious delinquency, and will remain on your credit report for seven years from the original delinquency date, so it's in your best interest to pay the debt before it reaches that point.

You mentioned that you have since paid the amount owed on your account, but you did not say whether you were able to pay it off before the account was sent to collections. If you were, your credit report probably wasn't impacted.

By law, you are entitled to a free copy of your credit once every 12 months from each of the three national credit reporting agencies. If you are unsure whether an account was reported to Experian and wish to review your credit history, you can do so quickly and easily by requesting a free copy of your credit report online at, or by getting your free credit report directly from Experian at any time.

Thank you for asking,
The "Ask Experian" Team