Closing a checking account will not damage your credit score
Closing a checking account does not appear on your credit report and will not lower your credit score. Banks do not report checking account activity to the three major credit bureaus — Equifax, Experian, and TransUnion. Your credit score is built only from credit activity: loans you have taken, credit cards you carry, payment history, and how much of your available credit you use.
A checking account is a deposit account, not a credit account. The bank knows whether you keep it open or close it, but that information never reaches the systems that calculate your credit score. You can close as many checking accounts as you want without any credit impact.
Key Takeaways
- Checking accounts do not report to credit bureaus, so closing one will not affect your credit score at all.
- Banks may check your credit when you open an account, but closing it has no credit consequence.
- Closing a checking account can affect your banking history with that specific bank, which may matter if you want to open another account there later.
- The real risks of closing a checking account are overdraft fees, bounced checks, and trouble opening accounts elsewhere — not credit damage.
Why banks do not report checking accounts to credit bureaus
Credit bureaus track credit risk — whether you borrow money and pay it back on time. A checking account involves no borrowing. You deposit your own money, spend it, and the bank holds it. The bank has no reason to report this to credit bureaus because it tells them nothing about your ability or willingness to repay debt.
Savings accounts, money market accounts, and certificates of deposit work the same way. None of them appear on your credit report. Only credit products — credit cards, personal loans, auto loans, mortgages, and lines of credit — get reported to the bureaus.
Some banks do check your credit when you apply to open a checking account. This is called a soft inquiry and does not lower your score. It shows up only to you on your credit report as a record that the bank looked, but it has no numerical impact.
What can actually go wrong when you close a checking account
Closing a checking account will not hurt your credit, but it can create other problems. If you have automatic bill payments set up on that account and forget to move them before closing, those payments will bounce. The merchant may charge you a fee, and you may end up late on a bill — which could then be reported to credit bureaus if it goes unpaid long enough.
If you close an account while it still has a negative balance — meaning you owe the bank money — the bank will pursue collection. This can end up on your credit report as a collection account, which damages your score. Always pay off any overdraft or fees before closing.
Closing a checking account also leaves a record in ChexSystems, a banking history system separate from credit bureaus. If you close an account badly — with unpaid fees, overdrafts, or fraud — that record can make it harder to open a new checking account at another bank. Some banks will deny you based on ChexSystems history alone.
How to close a checking account without creating problems
Before you close, review your account for any automatic payments or recurring charges. Log into your online banking and look for subscriptions, bill pay arrangements, or direct deposits. Move these to your new account or cancel them.
Check your balance and make sure it is zero or positive. If you have overdraft fees or other charges, pay them. If the account is negative, call the bank and ask what you owe before closing.
Contact the bank directly to close. You can usually do this by phone, in person, or sometimes online. Ask the bank to confirm the account is closed and to send you written confirmation. Keep this confirmation in case questions come up later.
Wait a few days after closing before canceling any linked services. Some automatic payments take time to process, and you want to make sure nothing bounces after the account is gone.
The difference between closing an account and your credit history
Your credit score depends on five factors: payment history (35 percent), amounts owed (30 percent), length of credit history (15 percent), credit mix (10 percent), and new credit inquiries (10 percent). A checking account touches none of these.
If you are worried about your credit score, focus on the accounts that actually report: credit cards, loans, and lines of credit. Pay those on time, keep balances low, and avoid opening too many new accounts at once. Closing a checking account is a banking decision, not a credit decision.
When a bank might deny you a new account after closing
Some banks will refuse to open a new account for you if your ChexSystems record shows a history of overdrafts, unpaid fees, or fraud at other banks. This is not a credit issue — it is a banking history issue. The bank is protecting itself from customers who have misused accounts in the past.
If you have been denied for a new checking account, you can request your ChexSystems report for free at www.chexsystems.com. Review it for errors. If you see a mistake, you can dispute it. If the information is accurate, some banks that specialize in second-chance accounts will still work with you, though they may charge higher fees.
Frequently Asked Questions
Will closing my checking account lower my credit score?
No. Checking accounts do not report to credit bureaus, so closing one has no effect on your credit score. Your score is built only from credit accounts like credit cards and loans.
Can a bank deny me a new account because I closed one badly?
Yes, but through ChexSystems, not through credit. If you left an account with unpaid fees or overdrafts, that record can make other banks hesitant to open accounts for you. You can check your ChexSystems report for free and dispute errors.
What happens to my direct deposit if I close my checking account?
Direct deposits will bounce and may be returned to your employer. Before closing, update your direct deposit information with your employer or payroll provider to point to your new account. Allow a few pay periods for the change to take effect.
Do I need to worry about my credit if I have overdraft fees?
Overdraft fees themselves do not report to credit bureaus. But if you do not pay them and the bank sends the debt to collections, that collection account will appear on your credit report and lower your score.
Can closing multiple checking accounts hurt my credit?
No. You can close as many checking accounts as you want without any credit impact. The only risk is your banking history with ChexSystems if you close accounts with unpaid balances or fees.