What is a Bad Check?

A bad check is a check that a bank refuses to honor. There are multiple reasons why a bank may take this course of action. For example, a check might be drawn on a non-existent bank account, or the account on which the check is drawn does not contain sufficient funds, or the check was not signed, or the check was not endorsed.

Consequences of a Bad Check

Issuing a bad check is illegal, though many people write bad checks simply because they are unaware of the actual cash balance in their accounts. It is possible that you would be charged with a misdemeanor or felony offense for passing (paying with) a bad check. The extent of the violation depends on the size of the amount on the bad check and the state in which you attempted to pass it.

When you do issue a bad check, the error is compounded because the bank will charge a hefty fee. In addition, your name might appear in the database of a check verification service, making it more difficult to pay with checks in the future.

How to Avoid Writing a Bad Check

There are several techniques you can use to avoid writing bad checks. They are as follows:

Obtain overdraft protection. You can keep from writing bad checks by arranging for overdraft protection on your bank account.
Review the account balance. Checking an account balance online on a regular basis, such as through an app, will reduce the risk of issuing checks when there is not enough cash on hand to support these payments.
Set up an alert. Set up a notification with your bank to alert you when your account balance is low, so that you have a better understanding of your remaining cash balance.
Avoid post-dating checks. Never assume the recipient will wait to deposit a check. They may deposit it immediately, even if you write a future date on it. This can lead to a bounced check if funds aren't available at that moment.