 TITLE: What to Do if There Is a Bank Error in Your Favor CONTENT: 3\\. Monitor Your Account\n------------------------\nUnless you're ultra wealthy, you'd probably notice if $30,000 accidentally appeared in your checking account. However, if you only glance at your bank balance from time to time, you might not notice a deposit error of a few hundred dollars. These small errors in your favor still have the potential to negatively affect your credit score. How? Here's an example.\nSuppose an extra $500 is mistakenly deposited into your checking account and you don't notice it. If the bank discovers the error, they can withdraw the funds without your permission, freeze your account or place a hold on the funds. Any checks you've written could bounce; automatic bill payments you've set up may not get funded. If your bills don't get paid on time, you might face late fees from creditors. Your bank may also charge fees for having non-sufficient funds (NSF) or overdraft fees if your balance goes below $0.\nThis financial turmoil could easily result in late payments that can hurt your credit score. Your payment history is an important factor in credit score calculations—and even one payment that's 30 days late or more can take time to recover from. Overdrafts and NSF fees don't appear on credit reports, so they won't directly affect your credit score. However, if you don't pay your NSF fees or overdraft fees or repay your negative balance after an overdraft, your bank might send your debt to collections. This creates a collection account that appears on your credit report for up to seven years and has a derogatory effect on your credit score.\nClearly, it's important to keep tabs on your bank account and make sure you always have enough money to cover upcoming expenses. Making it a habit to review the details of your account details once a week or so will help you spot anything out of the ordinary before it seriously affects your finances.\nIf you do find a bank error in your favor, alert your bank immediately and then check your account every few days until you see that the deposit has been reversed. Your bank's deposit account agreement will specify how long it should take to correct a deposit error. Generally, banks have 10 business days to investigate a report of an error on a consumer bank account, but it may take as long as 45 days to complete an investigation. Keep checking back until you have proof that the issue is resolved. END