How Long Can Bank Account Be Negative Into Chase

Wondering How Long Can My Bank Account Be Negative Chase and what to do if your bank account is negative for too long? Managing your finances can sometimes lead to an unexpected negative balance in your bank account.

If you’re a Chase customer, this blog post will help you particularly pertinent to avoid potential fees or account closures.

How Long Can Bank Account Be Negative with Chase?

According to the information available, if your account has a negative balance for too long, typically more than 60 days, Chase may close the account. During this period, you will likely incur overdraft fees, which can add up quickly and exacerbate the financial strain.

Let’s see it in brief:

Immediate to 5 daysGrace period to correct balance
After 5 daysContinuous overdraft fee
Up to 60 daysRisk of closure
After closureCollections and credit impact

Understand The Chase’s Overdraft Fees and Policies

Chase charges overdraft fees whenever your account goes below zero, and these fees can be substantial.

How Much Overdraft Fee Will Be Charged?

You will be charged a $34 Overdraft Fee for each transaction. This fee is also known as an Insufficient Funds Fee.

Here’s how it works:

  • You should maintain a minimal $50 in your Chase account. If your transaction brings your account balance “= or <$50” or more into the negative, you will be charged 34$ for each transaction.
  • If you have a balance of less than $50, you are limited to doing only 3 transactions per day, which means you could incur up to $102 in Overdraft Fees daily.
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For instance, if you can bring your account balance to overdrawn by $50 or less by the end of the next business day, Chase may waive the overdraft fee. This gives you a short window to address the negative balance before additional fees are applied.

However, you will not be charged an Overdraft Fee for Any transactions that are $5 or less, regardless of your account’s overdraft status.

You will not be charged, transactions made with your debit card were authorized at a time when your account had a sufficient available balance, even if the account was overdrawn when the transaction was posted.

For holders of Chase SapphireSM Checking and Chase Private Client CheckingSM accounts, there are no Overdraft Fees for items presented against an account with insufficient funds for the first four business days in the current and prior 12 statement periods. If items are returned on a business day, it counts toward the four business days when an Overdraft Fee will not be charged.

What happens if bank account is negative for too long into chase?

If your account remains negative for more than 60 days, Chase may not only close your account but also report to credit agencies or debt collection efforts and reduce your ability to open new accounts with Chase or other financial institutions.

Fee Structure and Penalties

Chase may charge overdraft fees for transactions that bring your account into a negative balance. However, if you make a deposit or transfer by 11 PM ET on the next business day that covers the overdraft, you may avoid additional fees, providing your account overdrawn balance is $50 or less by the end of that day.

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What to Do If Your Account Is Negative

If you find your Chase account in the negative, it’s important to act quickly:

  1. Deposit funds immediately: The sooner you can bring your balance back to positive, the better. You can do this via a transfer from another account, a direct deposit, or by depositing cash or a check at a Chase branch or ATM.
  2. Set up overdraft protection: If you have another account with Chase, you can link it to your checking account to cover any shortfalls, though fees may still apply for this service. Here are the steps to Turn on Overdraft protection:
    • After signing in, tap on the “Total Checkout”.
    • Swipe up and tap “Account Management,” then tap “Overdraft Protection”
    • On the next screen click on the drop-down box next to the Overdraft protection account and click on “Choose Account”
    • Choose the savings account to link to your checking account and tap “Done”
    • Click on the Check box to agree terms and conditions
    • Tap “Update protection,” then “Done”
  3. Monitor your account closely: Keep an eye on your balance with online banking or the Chase Mobile® app to avoid surprises.

What happens if Chase closes your account with a negative balance?

Once Chase closes an account with a negative balance, the bank will attempt to collect the amount owed from any other accounts you hold with them, or you might receive communications from Chase requesting payment.

Impact on Your Finances and Credit

If the negative balance is not paid, Chase could report the account to credit agencies, which may negatively affect your credit score. This derogatory mark can remain on your credit report for up to seven years, making it more difficult to open new bank accounts and obtain loans or credit cards at favourable rates.

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Furthermore, the unpaid negative balance may be sent to a collection agency. Once an account goes to collections, you may be subject to repeated contact with debt collectors, and the collection agency may also report the debt to credit bureaus.

What You Can Do

If you find yourself in a situation where Chase has closed your account with a negative balance, it’s important to take action:

  • Settle the Debt: If possible, pay off the negative balance as soon as you can to avoid additional fees, interest, or damage to your credit.
  • Communicate with Chase: Reach out to Chase’s customer service to discuss your options. They may be able to provide a payment plan or other solutions to help you settle the debt.
  • Check Your Credit Report: Keep an eye on your credit report to understand the impact and dispute any inaccuracies.
  • Financial Management: Moving forward, it’s crucial to manage your finances carefully to prevent a similar situation. Consider budgeting tools or financial counselling if needed.