Closing a checking account does not affect your credit score
Checking accounts are not reported to credit bureaus, so closing one will not show up on your credit report or change your credit score. Banks and credit unions do not send account closure information to Equifax, Experian, or TransUnion — the three major credit reporting agencies that calculate your score. Your credit report only tracks borrowed money: credit cards, loans, mortgages, and payment history on those accounts.
The confusion often comes from mixing up checking accounts with credit products. A checking account is a place to store and spend your own money. A credit card is borrowed money you agree to pay back. Only the credit card affects your credit score, not the checking account it might be linked to.
Key Takeaways
- Closing a checking account leaves no mark on your credit report because banks do not report deposit accounts to credit bureaus.
- Your credit score reflects only borrowed money — credit cards, loans, and mortgages — not money you own in a checking or savings account.
- Closing a checking account may affect your ability to open a new one if you have a history of overdrafts or unpaid fees reported to ChexSystems, a banking history database separate from credit bureaus.
- The timing and reason for closing an account do not matter for credit purposes; the account type is what determines whether it gets reported.
Why checking accounts never appear on your credit report
Credit bureaus track only credit activity — money you borrow and how reliably you pay it back. A checking account is a deposit account, meaning the money in it belongs to you. You are not borrowing from the bank; the bank is holding your money. Because no debt is involved, there is nothing for a credit bureau to report.
Your credit report includes credit cards, auto loans, mortgages, student loans, medical debt sent to collections, and sometimes utility or phone bills. It does not include checking accounts, savings accounts, money market accounts, or certificates of deposit. Closing any of these deposit accounts has zero impact on your credit score.
What does get reported when you close a checking account
While credit bureaus ignore checking accounts, banks report account closures to ChexSystems, a separate banking database that tracks deposit account history. ChexSystems is not a credit bureau — it does not calculate a credit score — but banks use it to decide whether to open a new account for you.
A normal account closure (you close it in good standing) appears on your ChexSystems record but does not hurt your chances of opening another account elsewhere. Banks see that you closed the account and move on. What does damage your banking record is closing an account while you owe money, have unpaid overdraft fees, or have a history of bounced checks. Those negative marks stay on ChexSystems for five to seven years and can make it harder to open a new checking or savings account.
If you are closing an account because of overdrafts or fees you cannot pay, contact the bank before closing it. Many banks will negotiate or waive fees if you ask, especially if you have been a customer for a while. Paying what you owe before closing protects your banking record.
The difference between ChexSystems and credit bureaus
ChexSystems and credit bureaus serve different purposes and do not share information. A credit bureau tracks whether you pay borrowed money on time. ChexSystems tracks whether you manage deposit accounts responsibly — no overdrafts, no bounced checks, no unpaid fees. You can have a perfect credit score and still be denied a checking account if ChexSystems shows a history of overdraft abuse. Conversely, you can have a low credit score and still open a new checking account if your ChexSystems record is clean.
When you close a checking account, only ChexSystems gets the notification. Your credit report remains untouched. If you are worried about your credit score, closing a checking account is not the cause.
What actually does affect your credit when closing accounts
If you close a credit card account, that can affect your credit score — but only if the card carries a balance or if closing it changes your credit utilization ratio. Closing a credit card account does not erase the payment history on that card; the history stays on your report for seven years. However, closing a card with a zero balance and good payment history typically has a small, temporary impact on your score.
Closing a checking account linked to a credit card does not close the credit card itself. The two are separate products. You can close the checking account without touching the credit card, and the credit card's status remains unchanged.
If you have automatic payments set up from the checking account to pay a credit card or loan, make sure to change those payment instructions before closing the account. Missing a payment because the account is closed will damage your credit score. Update your payment method at least two weeks before the account closure date.
How to close a checking account without complications
To avoid problems with ChexSystems or your credit, follow these steps before closing: First, make sure the account balance is zero or transfer any remaining money to another account. Second, check for any pending transactions or automatic payments linked to the account and cancel or redirect them. Third, pay any outstanding fees or overdraft charges. Fourth, contact the bank and ask them to close the account in writing — do not just stop using it.
When you call or visit to close the account, ask the bank to confirm the closure in writing and to note that the account was closed in good standing. Keep this confirmation. If the bank later reports the closure incorrectly to ChexSystems, you will have proof of what actually happened.
If you are closing the account because of poor service or fees, you do not need to explain your reason to the bank. A simple "I would like to close this account" is enough. The reason does not affect your credit or your ChexSystems record — only the account status does.
Frequently Asked Questions
Will closing my checking account lower my credit score?
No. Checking accounts are not reported to credit bureaus, so closing one has no effect on your credit score. Only credit products like credit cards and loans appear on your credit report. Closing a checking account is invisible to credit scoring.
Can I be denied a new checking account because I closed one?
Only if you closed the previous account with unpaid fees, overdrafts, or bounced checks. A normal closure in good standing does not prevent you from opening another account. Banks check ChexSystems, not your credit score, when deciding whether to open a new deposit account.
Does closing a checking account affect my credit card?
No. Your checking account and credit card are separate products. Closing the checking account does not close the credit card or change its status. However, if you have automatic payments from that checking account to pay your credit card bill, you must set up a new payment method before closing the account to avoid missed payments.
What happens if I have overdraft fees when I close my account?
Unpaid overdraft fees can be reported to ChexSystems and will make it harder to open a new checking account at other banks. They do not affect your credit score. Before closing, try to pay the fees or negotiate with the bank to waive them. If you cannot pay, ask the bank what will be reported to ChexSystems.
How long does a checking account closure stay on my record?
A normal account closure stays on ChexSystems for up to five years but does not prevent you from opening new accounts. Negative marks like unpaid fees or overdrafts stay for five to seven years. Your credit report does not track checking account closures at all.