Bounced Cheques on credit rating?

smcqis

Do bounced cheques show up on your credit file?

chattychappy

No.

But if they caused you to miss a repayment, that might show up.

[NB see correction below]

Paul_Herring

smcqis wrote: »

Do bounced cheques show up on your credit file?

*possibly*

1) As pointed out above, if the bounce causes you to miss a payment with a 3rd party, the 3rd party may record it.
2) If the subsequent fee from your bank causes you to go over an agreed overdraft, that may get recorded by your bank.

Otherwise, no - the actual bounce itself doesn't get recorded.

YorkshireBoy

Paul_Herring wrote: »

Otherwise, no - the actual bounce itself doesn't get recorded.

I'm not so sure. According to Experian, a '1' may denote...

"Cheques, direct debits and standing orders may have been bounced to keep the account in order."

...so it seems the answer is yes?


http://experian.metafaq.com/resources/experian/Downloads/credit_report_explained_Aug09V4.pdf (top of page 15)

chattychappy

YorkshireBoy wrote: »

I'm not so sure. According to Experian, a '1' may denote...

"Cheques, direct debits and standing orders may have been bounced to keep the account in order."

...so it seems the answer is yes?


http://experian.metafaq.com/resources/experian/Downloads/credit_report_explained_Aug09V4.pdf (top of page 15)

Yes, looks like I was wrong.

Paul_Herring

YorkshireBoy wrote: »

I'm not so sure. According to Experian, a '1' may denote...

"Cheques, direct debits and standing orders may have been bounced to keep the account in order."

...so it seems the answer is yes?


http://experian.metafaq.com/resources/experian/Downloads/credit_report_explained_Aug09V4.pdf (top of page 15)

Hmm. Maybe. IIF the reason for the bounce is that it would take you over an agreed overdraft, then yes, but that puts it in the same category as my original point 2.

It's the (potential) breach of limit that causes the record to be made, not merely the fact that the cheque bounced.

Canceled cheques may also bounce, but that in and of itself wouldn't cause a record to be placed on your file by the bank.

PNPSUKNET

dont some shops use equifax cheque service?

smcqis

Thanks for responses, if was payment for a wedding photographer by cheque and although hadnt enough in my current account i did in my savings account. So just paid again from this money

PNPSUKNET

think it should just damage your internal rating