Closing a checking account does not directly damage your credit score
Closing a checking account has no impact on your credit report or credit score. Banks do not report checking account activity to the three major credit bureaus — Equifax, Experian, and TransUnion — so opening or closing a checking account leaves no trace on your credit file. Your credit score is built from credit accounts like credit cards, loans, and lines of credit where you borrow money and repay it over time.
That said, the reason you close an account or what happens during the closing process can indirectly affect your credit if you are not careful. A checking account closure itself is invisible to credit bureaus, but related actions — like bounced checks, unpaid overdraft fees, or closing a linked credit card — can show up on your record.
Key Takeaways
- Checking accounts are not reported to credit bureaus, so closing one will not appear on your credit report or lower your score.
- Unpaid overdraft fees or bounced checks can be reported to ChexSystems or sent to collections, which may harm your ability to open future bank accounts.
- Closing a credit card tied to the same account can affect your credit score by reducing available credit or shortening your credit history.
- The bank may report the account to ChexSystems (a banking history database) if you leave it with a negative balance or unresolved disputes.
What credit bureaus actually track about your bank accounts
Credit bureaus track borrowing and repayment — credit cards, auto loans, mortgages, personal loans, and payment history on those accounts. A checking account is a deposit account, not a credit account. You put money in; you take money out. No credit is extended, so there is nothing to report to Equifax, Experian, or TransUnion.
The same is true for savings accounts, money market accounts, and certificates of deposit. Closing any of these accounts will not show up on your credit report. Your credit score remains unchanged whether you have had the account for one month or twenty years.
When a checking account closure can indirectly hurt your credit
A checking account closure itself does not hurt your credit, but problems before you close it can. If you close an account with an unpaid overdraft fee or a negative balance, the bank may send that debt to a collections agency. A collections account will appear on your credit report and lower your score.
Before you close a checking account, make sure the balance is zero or positive and that all fees are paid. If you have overdraft protection linked to a credit card, closing the checking account does not close the credit card — but if you are closing the credit card at the same time, that will affect your credit score by reducing your available credit and potentially shortening your credit history length.
ChexSystems: the banking database that is not your credit report
ChexSystems is a separate database that banks use to check your banking history before opening a new account. It is not a credit bureau, and a ChexSystems record does not affect your credit score. However, if you close a checking account with unresolved problems — unpaid fees, bounced checks, or a negative balance — the bank may report you to ChexSystems.
A ChexSystems report can make it harder to open a new checking account at another bank, even though it does not touch your credit score. Some banks will deny you outright; others will require you to pay the outstanding balance first. You can request your ChexSystems report for free once per year at www.chexsystems.com.
How to close a checking account without creating problems
To avoid any complications, follow these steps before you close: First, make sure your balance is zero or positive — withdraw or transfer any remaining money. Second, set up direct deposit or automatic payments with your new bank if you have them running on the old account. Third, wait for any pending checks or transfers to clear. Fourth, pay any outstanding fees or overdraft charges.
Once those are done, contact the bank and request account closure. Ask the bank to confirm in writing that the account is closed with a zero balance and no outstanding obligations. Keep that confirmation. If the bank later reports you to ChexSystems or sends an old fee to collections, you will have proof that you closed the account in good standing.
What happens if you close an account with a negative balance
If you close a checking account while you still owe the bank money — an unpaid overdraft fee, a negative balance, or a returned deposit — the bank can pursue collection. They may report the debt to ChexSystems, send it to a third-party collections agency, or both. A collections account will appear on your credit report and lower your score.
If you cannot pay the full amount, contact the bank before closing and ask about a payment plan or settlement. Some banks will waive or reduce overdraft fees if you have been a customer for a long time or if the fee was their error. Getting it resolved before closure is much easier than dealing with collections afterward.
Linked credit cards and credit score impact
If you have a credit card linked to the same account — for overdraft protection, for example — closing the checking account does not automatically close the credit card. The credit card remains open and active. However, if you decide to close the credit card at the same time, that will affect your credit score.
Closing a credit card reduces your total available credit, which can raise your credit utilization ratio (the percentage of your credit limit you are using). It can also shorten your average account age if the card was one of your oldest accounts. Both of these changes can lower your score slightly. If you want to close a credit card, do it only after you have paid off the balance and confirmed there are no pending transactions.
Frequently Asked Questions
Will closing my checking account show up on my credit report?
No. Checking accounts are not reported to credit bureaus, so closing one will not appear on your credit report or affect your credit score. The closure is only visible to the bank and to ChexSystems, which is a separate banking database used by banks to check your account history.
Can a bank report me to credit bureaus for closing an account?
No, but a bank can report you to ChexSystems or send unpaid fees to a collections agency if you close the account with a negative balance or unresolved debt. A collections account will show up on your credit report and lower your score. Always pay any outstanding fees before closing.
What is ChexSystems and how does it differ from my credit score?
ChexSystems is a database banks use to check your banking history before opening a new account. It tracks bounced checks, unpaid fees, and account disputes — but it is not a credit bureau and does not affect your credit score. However, a negative ChexSystems record can make it harder to open a new bank account elsewhere.
If I close my checking account, do I need to close my credit card too?
No. Closing a checking account does not close any linked credit card. The credit card remains open and active. You only need to close the credit card if you want to, and closing it will affect your credit score by reducing available credit and potentially shortening your credit history.
What should I do before closing my checking account to protect my credit?
Make sure your balance is zero or positive, pay any outstanding fees or overdraft charges, and transfer or withdraw all remaining money. Set up direct deposit and automatic payments with your new bank first. Ask the bank to confirm the closure in writing with a zero balance, and keep that confirmation for your records.