In India, a bouncing check can have a huge negative influence on your overall integrity. It can also have serious legal and financial consequences.
Now, given a single copy of a check -bounce, now cannot have a direct influence on your credit score, repeated events of such events can indirectly influence your creditworthiness, integrity together with your overall credit profile. This article is devoted to only in detail to discuss these concepts.
What is a check -out rotation?
A check Stuiter takes place when a person tries to submit it, to deposit a check, but his account does not have enough money to cover the total amount of the check. Now a cause of a bounced check is a lack of money in the sender’s account.
On the other hand, a check -bastard can also take place because of a mismatch in signature, wrong date, overwriting by check, damage to the check itself, together with other comparable technical problems. Banks generally charge high costs for all such unfair checks.
What are the implications of a check -out on your credit score?
An unfair check in itself, generally does not have a direct influence on or lowers your credit score. Credit agencies such as: Cibil, Experian, Equifax and Crif High Mark Check and follow credit -related activities such as refunds of loans, refunds of the credit card account, other similar credit rights, etc., etc., etc.
Still, if an unfair check results in you an EMI payment or a owed on your credit card, this can certainly affect your credit score. That is why it is important to always remember that all kinds of credit payments must be made on time with complete sincerity. Because this increases the honesty and integrity of an individual as a whole and also increases the credit score.
What are the legal consequences under Indian law?
Now, under the 138 section of the manageable instruments ACT, 1881, which issue a check that bounces because of insufficient funds is a criminal offense. Penalties can include fines and imprisonment for a maximum of two years.
What are the preventive measures to prevent bounce from checking?
To protect your financial integrity, reputation and credit score:
- Use the method of digital payments: Consider using digital payments as an aid to protect against the rejection of the check. Avoid using checks to prevent damage to your reputation by transferring money digitally.
- Go to the bank and work your signature at: If you have changed your signature or have doubts about this, please work it by your bank with relevant documents. This will ensure that the possibility of mismatch is eliminated in signature.
- Check and verify the control data: Check the amount, the date, the signature and the quality control to prevent errors. Sometimes even old and damaged checks are rejected.
- Maintain sufficient balance on the bank account: Make sure you retain sufficient balance on your bank account. So that no check is rejected for this reason at least. If you don’t have enough balance, don’t sign a check, it’s as simple as that.
Conclusion
That is why a single check may not have a direct influence on your credit score. However, the indirect consequences can be serious. That is why you must respect Indian law, retain financial integrity and discipline on your part.
This can be done by ensuring that the issues of accurate control, keep the sufficient balance in your bank and follow the entire process of control allocation to the end. These simple steps can help you maintain your creditworthiness and improve your credit score.
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