 TITLE: Does an Overdraft Affect Your Credit Score? CONTENT: How an Overdraft May Impact Your Credit\n---------------------------------------\nThere is one instance in which an overdraft can hurt your credit: if it's sent to collections. If you pay the fees and negative balance after an overdraft, you'll be fine. But if you don't pay back what you owe, the financial institution can send that debt to collections. Once a collection agency creates an account for you, it can go on your credit report.\nAnytime an account goes to collections, no matter how big or small, it's indicated on your credit report as a delinquency and will stay there for seven years. So make sure to pay back the overdrawn balance and fees as soon as possible to avoid this scenario.\nAvoiding collections and knowing what other factors affect credit can keep your finances in good shape:\n*   **Payment history**: This makes up the biggest part of your credit score, so any late or missed payments will negatively affect your credit.\n*   **Credit utilization**: Creditors prefer that you not use more than 30% of your available credit at any given time, so try to keep your balances reasonably low.\n*   **Credit mix**: Diversity in your account types, such as credit cards and loans, shows your history with various kinds of debts and can help your credit score.\n*   **Hard inquiries**: These appear on your credit report when you've applied for credit and a lender has checked your report. These inquiries can temporarily ding your credit score, especially if you have many of them in a short time.\n*   **Negative information**: Items like charge-offs, foreclosures, bankruptcies and debts in collections can bring down your credit score. END