What Does It Mean To Have A Bank Account In Good Standing

A certificate of good standing certifies that a company is properly registered with the state is up to date on all state registration fees and required document filings and is legally permitted to engage in business activities in the state in some states it is called a certificate of status or certificate of existence.

What does it mean to have a bank account in good standing.

When an entity is in good standing with the chartering agency it may obtain a certificate of good standing which indicates this to be the case. If an account has had even one late payment then it would be considered potentially negative open and closed accounts in good standing on a credit report. Generally when an account is serviced according to the terms of the loan or contract the account is said to be in good standing this term does not have a standard definition defined by the credit industry but generally includes. All consumers need to have a basic understanding of what it means to have an account in good standing.

An account in good standing is an account that has no negative payment history past or present. What it really means to have a credit card account in good standing in general keeping your credit card account in good standing means that you re making at least the minimum payment by your. Open active accounts in good standing remain in your credit report indefinitely. 6 in some cases a bank may require an entity wanting to open an account such as a checking or savings account to show a certificate of good standing from the chartering agency.