Mar 18, 2011

Overdraft Protection Worse for Credit Score Than Bouncing a Check?

Yes, I was surprised too. But apparently opting  for overdraft protection on a checking account may result in a credit inquiry and is viewed similarly to you adding another credit card to your mix, both of which can actually hurt your score a bit. Meanwhile, banks don't report bounced checks to the credit bureaus. And as every homebuyer knows, every point on your credit score can be important when qualifying for a mortgage to buy a home.

Get the details in Marcie Geffner's article, "Banking and Your Credit Score."