Due to life circumstances or mismanagement of finances, you may incur negative account balances. In case this happens, and if you are a Chase Bank customer and have looked for a Chase near you, you must know how long you can have a negative balance in your account.
Moreover, it is crucial that you identify what the implications of this are and what you should do if you are in this situation. So if you have an account with red numbers, you must know what can happen if many months go by with this financial situation.
How long can I leave my Chase bank account negative?
On many occasions, the account balance may be negative and we don’t know it. Whether it is due to scheduled monthly payments or overdrafts, there are several reasons why the balance may be in the red.
If you are a user of another bank, you should review your bank’s policies. Remember that not only these policies are relevant, but also the Chase overdraft policies.
What happens if my Chase account is negative for too long?
Leaving the account with a negative balance should not be an option. Not only does this give your bank, in this case Chase, the right to close the financial product, but it will also affect your banking history, as you will be left with debts for unpaid fees that have accumulated.
In addition, certain banks, including Chase, may continue to generate fees that, little by little, may increase the negative balance of the account. This is known as nonsufficient funds fees (NSF).
Another information that you should consider is that Chase does not have a specific limit for your account to be negative, since this is at the discretion of this financial institution. Furthermore, you must know how to activate the overdraft protection to avoid debts in Chase.
Reasons my Chase account may have a negative balance
Sometimes life leads us to make unexpected expenses or, simply, internal or external elements change abruptly. This can lead to the customer leaving the account in the red, as well as these other reasons:
- Overdraft fees that you did not pay on time
- You used or overdrew your account with more money than you have in it
- Automatic monthly payments that you did not clear from your Chase account
- You deposited a check that was not paid
As you will see, having a negative balance in your account is not something very rare, on the contrary, it can happen at any time, either due to lack of money or not keeping track of your Chase bank account.
What is a reality is that this will bring you financial problems and could hinder you from opening an account in the same bank or another one. It could also affect the allocation or acquisition of other financial products and benefits.
What can I do to avoid having a negative balance in my Chase bank account?
Just as you can have your account with a negative balance in no time, it is also easy to avoid that situation. To do so, you can do some tasks that will help you to have your account with a positive balance:
- Keep track of your account balances: This also includes transactions such as deposits, payments, withdrawals, and so on
- Set up automatic alerts: This can be done from the Chase bank app and will help you know when your account balance is low or close to the limit
- Organize your personal and family finances: By keeping track of your expenses and income, it will be much easier to avoid having a negative balance. So set up your monthly budget
- Hire an overdraft protection service: this allows you to link your savings account or another account that frequently has money in it, and transfer the amount you need instantly
Other good options to avoid negative balances in your Chase account include reviewing your expenses and eliminating those that are not necessary.
In addition, you can create an emergency fund, which allows you to pay off that red balance you have.
There are many ways to avoid negative balances, you just need to have the willingness, mindset, and planning necessary to prevent it from happening.
Besides, having positive numbers will give you peace of mind and will keep you away from anxiety. Let’s face it, finances stress us all.
What should I do if my Chase bank account is negative?
Having negative balances can be something normal, what should not be a habit is that the amount is very high. It is also not recommended that you spend a long time with red numbers, because, as you know, they can close your account and affect your banking history.
In case, for some reason or another, you have a negative balance in your Chase account, there are quick and easy ways that will allow you to change this situation.
One of them is to talk to a bank representative. While they won’t remove the negative balance, it’s a great way to let them know that you’ll be changing the situation soon.
Furthermore, you should deposit funds to turn the red numbers into positive balances. The faster you do it, the better, as this will reduce the Chase insufficient funds fee, which equals less money to pay.
Finally, don’t forget about NSF and overdraft fees and the same principle applies to them: the faster you pay, the less you will owe Chase.
Can I close my bank account with a negative balance?
This would be a bad decision. First, you must know what Chase’s policies are for closing bank accounts, so find out before you abruptly close it.
Likewise, if you truly believe that you are unable to make the payment, talk to the bank representatives about your situation so that together you can make a mutually beneficial decision.
Keep in mind that banks, including Chase, may not allow you to close the account with a negative balance and may force you to make the payment. This is at the discretion of the bank, so communication is best.
References
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“Can I Close a Bank Account with a Negative Balance? – Quora.” Quora, https://www.quora.com/Can-I-close-a-bank-account-with-a-negative-balance
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Chiongbian, Jennifer. “Is Your Bank Account Negative? How to Fix It – DebtHammer.” DebtHammer, https://debthammer.org/negative-bank-account/
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Harad, Mitchel. “How Long Can Your Bank Account Be Negative? The Fast Facts.” Overdraft Apps, https://overdraftapps.com/how-long-can-your-checking-account-be-overdrawn/#:~:text=If%20your%20balance%20remains%20negative,even%20further%20into%20the%20red
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“Tips to Help Avoid a Negative Bank Account | Chase.” Credit Card, Mortgage, Banking, Auto | Chase Online | Chase.Com, https://www.chase.com/personal/banking/education/basics/negative-bank-account#:~:text=A%20negative%20bank%20balance%20occurs,to%20make%20purchases%20or%20withdrawals%20
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“Why Do I Have a Negative Balance on My Bank Account? – Quora.” Quora, https://www.quora.com/Why-do-I-have-a-negative-balance-on-my-bank-account