Does a bounced check affect my credit score?
It will only affect your credit score if it is reported to one of the three major credit bureaus . Experian, Equifax or Transunion. It can only be reported by someone who has an account with them. Most only have an account with one or two. Membership with those companies is expensive and you have to be a creditor , collection agency or bank of some sort before they will let you join. Its not easy. So, most businesses refer their unpaid debts (ie your bounced check) to a third party collections agency. These business can purchase your debt from the original company, or they can represent the company and collect on their behalf,. Usually the later. In this case the collection agency makes a commission off of the collection, or they add a charge to what you owe. If you fail to pay the debt or rectify the bounced check they have the authority to report it to a credit bureau. Your Credit score is calculated by using a secret (seriously) formula.
