Bounced check credit score damage depends on the purpose of the cheque issued, and if it is only for payment of debt for a loan taken from a lender, it will affect the credit score.
Writing a cheque is more comfortable than paying cash as it gives time to pass them in the bank. But it is not easy to clear the checks as writing them. There are ample reasons for the same. However, if the cheque doesn’t get cleared, it definitely leaves a negative impact on the issuer’s image.
It reduces the chances of further issuing of checkups. However, it never affects the credit score directly. Banks do not report the cheque bounce to the credit bureaus. But if the cheque bounce is for debt payment to a lender, it will be shown as late payment or delayed payment in the credit score.
It affects the credit score, which takes months to be rectified. Irrespective of the situations for the cheque bounce from insufficient funds to technical reasons, cheque bounces of loans will have its impact on the credit score.
It will take time to explain the circumstances for even mechanical causes for the check bounce to end in late payment. It is one of the significant factors that the lenders’ take as a negative factor for the creditability of the consumer in honoring the loan repayments without even a check bounce of the repayment schedule.