February 16th, 2010

Dear Credit Karma – What affects my credit score?


Dear Credit Karma,
Do negative balances and overdraft charges from my checking account have an effect on my credit rating?

The short answer is no, overdrafts on your checking account do not have an effect your credit score. Your credit scores is calculated according to a certain formula that takes into account information pertaining to amount of outstanding debt, timeliness of payments, and related items. However, the determination of your credit score does not reflect any elements of your overdraft history with banks.

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January 28th, 2010

New Opt-In Overdraft Rules For Checking and Debit

Starting July 1st, banks can no longer charge overdraft fees on debit cards or checking accounts without explicit permission from customers. Currently, banks automatically enroll customers in overdraft protection; the new reform gives consumers the choice to opt out of overdraft protection, and instead have their debit card declined or ATM withdrawal restricted if they […]

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