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Hi All,

I'm relatively new to this board, but I posted here a couple of times. let me first thank you all for all the goodhearted support and encouragement you spread around.

My situation is as follows. I have a very short credit history. I am 28, a graduate student (I get a stipend and I work at the University), and I've only been in the US for a year and a half. I have two credit cards, a Visa from my credit union with a $4000 limit and a student AmEx with a $2400 limit (both are unsecured, and I only have them a little over a year). I pay my bills on time, so no revolving credit, and no finance charges. Ever (or so I thought). I probably have too many inquiries in my credit report, since when I just got here I applied (and was denied) credit numerous times. I guess I shot way over my league.

Last month I paid one part of my AmEx bill early, so that took care of the minimum payment. Towards the end of the month I tried to pay the rest of my bill ($100) online. However, AmEx tried to pull the money from my (new) Online Bank Account, where the checking account didn't have enough to cover the payment, but the MMA did. Of course, I didn't know that the two accounts were NOT linked. So the payment was denied.

AmEx charged $29 "returned payment fee" and some small change as finance charge (luckily, I caught it on time). I called to explain, and they waived the fee as a courtesy.

My question is, what effect, if any, will this have on my credit report?

Thanks for any comments,
YN
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I 99% doubt it will even show up on your report. Creditors don't report delinquincies less than 30 days.
-steve

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As long as you make your next required minimum payment on time this returned payment will have no impact on your credit report. Creditors do not report NSF checks unless they result in a late payment.
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My question is, what effect, if any, will this have on my credit report?

None. Bounced checks don't go on a credit report. You have to be 60 days late on a payment before anyone will report it.



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None. Bounced checks don't go on a credit report

True, but they do go on a bounced check list that banks subscribe to. If you bounce checks at bank A, then try to open an account at bank B, bank B will look up your history at the bureau and decline the account.

Ditto for breaking rental leases. Regional landlords usually have a common database that they can check your rental history against.

These smaller reporting bureaus are often overlooked because most people assume that they only have to worry about their credit report at the big three CRAs.

Just something more to worry about.
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True, but they do go on a bounced check list that banks subscribe to. If you bounce checks at bank A, then try to open an account at bank B, bank B will look up your history at the bureau and decline the account

I suppose it depends on WHY the check bounced and how often you bounce them. His story sounded like an honest mistake, so I'm sure they'd be more understanding. Especially since he now knows the 2 accounts are not linked. If he does not bounce any more checks, he should be fine.

Louise
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Last month I paid one part of my AmEx bill early, so that took care of the minimum payment. Towards the end of the month I tried to pay the rest of my bill ($100) online. However, AmEx tried to pull the money from my (new) Online Bank Account, where the checking account didn't have enough to cover the payment, but the MMA did. Of course, I didn't know that the two accounts were NOT linked. So the payment was denied.

AmEx charged $29 "returned payment fee" and some small change as finance charge (luckily, I caught it on time). I called to explain, and they waived the fee as a courtesy.

My question is, what effect, if any, will this have on my credit report?


Hi YN!

I think you'll find that absolutely nothing will come of this. Since you called right away, and the fee was waived, it stands to reason that you caught this before anything would've been reported to affect your credit rating.

Even if you were to later find out that it was (which I doubt), you could just send a letter of explanation to the CRA and ask that it be attached to your file.

These things do happen, and it appears that you've explained the incident to Amex and that it's not going to be an issue for you.

Good luck!

Tony
...but I still am...

Off2Aruba
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