Overdraft fees are frustrating, expensive, and all too common. But beyond the immediate hit to your wallet, many people wonder:
Can overdraft fees actually affect your credit score?

The short answer is: Not directly — but they can still cause serious credit problems if left unchecked.

Here’s what you need to know.

🧾 What Is an Overdraft Fee?

An overdraft fee is a charge you get when your bank allows a transaction to go through, even though your account doesn’t have enough money to cover it. The bank “covers” the difference temporarily — and charges you for the service.

These fees are typically $30–$35 per transaction, and multiple overdrafts in a short time can result in hundreds of dollars in fees.

📉 Do Overdraft Fees Directly Lower Your Credit Score?

No. Overdraft fees themselves are not reported to credit bureaus, and they won’t appear on your credit report just because you were charged one.

Credit scores are based on:

• Payment history (bills and loans)

• Credit utilization

• Length of credit history

• Credit mix

• New credit applications
  
  
  

Since checking accounts and bank fees aren’t credit products, they don’t directly factor into your score.

⚠️ When Overdrafts Can Hurt Your Credit

While the fee doesn’t hit your credit score directly, what happens next can:

1. Unpaid Fees Can Lead to a Closed or Charged-Off Account

If your account stays overdrawn for too long (typically 30–60 days), the bank may:

• Close your account

• Send the negative balance to collections

• Report the collection to the credit bureaus
  
  
  

Once in collections, the unpaid balance can hurt your credit score for up to 7 years.

2. Missed Payments on Linked Bills

Many people use bank accounts to pay bills automatically — like credit cards, loans, or utilities. If your account overdrafts and payments bounce:

• You may miss a loan or credit card payment

• These missed payments will be reported and can cause serious damage to your credit score
  
  
  

3. Bank Reporting to ChexSystems

Banks use tools like ChexSystems to track account history (not credit scores, but still important). If your account is overdrawn and closed:

• It can be listed in ChexSystems for up to 5 years

• This could make it hard to open a new bank account elsewhere
  
  

🛡️ How to Protect Your Credit (and Your Account)

✅ 1. Check Your Balance Regularly

Use mobile banking or an app like Copiafy to track:

• Available balance

• Upcoming bills

• Pending charges
  
  
  

✅ 2. Set Up Overdraft Protection

Link a savings account, line of credit, or credit card so your bank can cover charges without charging a fee or reporting a negative balance.

✅ 3. Opt Out of Overdraft Coverage

If you’d rather have a transaction declined than pay a fee, you can opt out of coverage for debit card and ATM purchases.

✅ 4. Ask for a Fee Waiver

Many banks will remove one or two fees per year if you call and ask — especially if you have a good history.

✅ 5. Address Negative Balances Quickly

If your account goes negative:

• Bring it back to a positive balance as soon as possible

• Avoid letting it linger beyond 30 days to reduce the risk of collections
  
  
  

💬 Final Word

Overdraft fees don’t directly lower your credit score — but ignoring them can lead to consequences that do. The best way to stay protected is to understand how overdrafts work, use tools to track your finances, and act quickly if something goes wrong.

Your bank account and your credit score are connected in more ways than you think — and both deserve your attention.

Next Up:
👉 Why Your Account Goes Negative Even When You Have Money (and How to Fix It)
👉 How to Switch Banks Without Losing Track of Your Bills