A Bounced Check Can Affect Your Credit History If Drawn On A Delinquent Account

If you are aware that your account is dysfunctional or closed writing a cheque on that account would be considered as cheque fraud which is a crime punishable by law.  Many people do not understand the idea and the contract behind signing a cheque to purchase a certain commodity.  When you sign a cheque you make illegal promise and commitment to the business that the cheque is as good as being in real money.  If the cheque is knowingly drown out on a defunct or delinquent account then that transaction is tantamount to stealing from the store and fraud.

The result can be that your bounced cheque is sent to a collection agency or that you are sued in a court of law by the business. If the cheque goes to a collection agency then it is more than likely that the collection agency will report the collection accounts to the credit bureau which will have a negative impact on your credit score.  If you are sued in a court of law by the business and a judgement is passed against you which is again more than likely, then this judgement will also find its way on your credit report.  Both of these instances was severely impacted your credit rating.

In the past people would sometimes give out a cheque but expect to have a certain relief for the time that it took for the business to send in the cheque to the bank and for the bank to process it.  But it is extremely important to understand that this process has changed for most of the businesses that accept cheques.  Cheques are scanned and the online copies are sent to the bank immediately for encashment.  This means that the cheques that he presents the business may be and cashed the same day and even within a few hours of you making the payment.  This system does not give you a few extra days in which you can put money in your account if it is not there have already in the balance.
So make sure that you never cash out a check on an account that you are unsure of or one that does not have sufficient balance.

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