My bank recently closed my account due to lack of payment of overdrafts. How will this affect my credit score?
If it is the only mark on your credit score, it should be minimal. However, the main thing you can do is pay overdraft fees ASAP. The older you are the better as it means a longer time of problem free credit. As I see it, it is the overdrafts that are the problem, not the fact that the bank closed your account. Is it safe to assume that the bank covered these checks, so there aren’t additional bad marks elsewhere? You may have some cleanup in this area as well. Your credit score is meaningless unless you wish to apply for a loan. If you do apply for a loan, you may end up with a higher interest rate. Insurance companies will charge higher rates for people with bad credit scores.
