Closing a checking account does not damage your credit
Closing a checking account has no direct effect on your credit score. Banks do not report checking account closures to the three credit bureaus—Equifax, Experian, and TransUnion—so the act of closing the account itself will not appear on your credit report or lower your score.
The confusion often comes from mixing up checking accounts with credit accounts. A credit account is something you borrow money through: a credit card, a personal loan, a mortgage, or a line of credit. A checking account is a deposit account where you store and spend your own money. Credit bureaus track only borrowing and repayment, not deposits and withdrawals.
That said, the circumstances around closing an account can sometimes affect your credit indirectly. If you close a checking account while you still owe the bank money—through an overdraft, a fee dispute, or a linked loan—that unpaid debt can be reported and damage your score. But the account closure itself is not the problem.
Key Takeaways
- Checking account closures are not reported to credit bureaus and do not lower your credit score.
- If you close an account with an unpaid overdraft or outstanding debt to the bank, that debt can be reported and harm your credit.
- Closing a checking account may affect your ability to open a new one if the bank checks ChexSystems, a banking history database separate from credit reports.
- Your credit score can be affected by what you do with money after closing—such as missing payments on bills you used to pay from that account.
When closing a checking account might hurt your credit indirectly
The main risk is unpaid debt. If you close a checking account while carrying a negative balance—money you owe the bank—that debt does not disappear. The bank can report it to a debt collector, and a collection account will appear on your credit report and lower your score. Even a small overdraft of $50 can be reported if it remains unpaid.
Similarly, if you have a linked loan or line of credit attached to the checking account, closing the account does not close the loan. If you then miss payments on that loan because you forgot about it or lost track of it after the account closed, those missed payments will be reported to credit bureaus.
The other indirect risk is operational: if you close your checking account and fail to set up a replacement before bills are due, you may miss payments on credit cards, loans, or utilities. Missed payments are reported to credit bureaus and will lower your score. The account closure itself did not cause the damage, but the disruption it created did.
How ChexSystems affects your ability to open a new account
ChexSystems is a banking history database that tracks checking and savings account behavior. It is separate from credit reports and credit scores. When you close a checking account, the closure may be reported to ChexSystems, depending on how the account ended.
If you closed the account in good standing—no overdrafts, no unpaid fees, no disputes—ChexSystems will simply note that the account is closed. This will not prevent you from opening a new checking account elsewhere. Most banks do not penalize you for closing accounts responsibly.
If you closed the account with an unpaid overdraft, a history of overdrafts, or unresolved disputes with the bank, that information stays in ChexSystems for five to seven years. Some banks will decline to open a new account for you during that period, or they may require you to pay a deposit or accept restrictions. But again, this is a separate system from credit reporting and does not affect your credit score.
Steps to close a checking account without creating problems
Before you close, make sure all automatic payments and direct deposits linked to the account are moved or canceled. Log into your account and review the past three months of transactions to catch any recurring charges you may have forgotten about. Contact your employer or benefits provider to redirect direct deposit to your new account, if you have one.
Pay off any overdraft balance or outstanding fees. Call the bank and ask whether there are any holds, disputes, or pending charges on the account. If there are, resolve them before closing. Ask the bank how long it takes for the account to fully close and whether they will send you written confirmation.
Do not close the account until you have opened a replacement account elsewhere and confirmed that direct deposit and bill payments are working. Closing first and opening later is the fastest way to miss a payment by accident.
What happens to your credit if you forget about the old account
If you close a checking account and then forget about it, your credit is still safe—unless money is owed. The account closure itself will not appear on your credit report. But if the bank later discovers an unpaid fee or overdraft that was never resolved, they can report it as a debt.
The real risk is if you had automatic bill payments set up on that account and you forgot to move them. When the payment fails to go through, your creditor reports the missed payment to credit bureaus. The damage comes from the missed payment, not from the closed account.
This is why the step above—reviewing three months of transactions before closing—matters. It catches recurring charges and automatic payments that are easy to overlook.
How to check your credit report after closing an account
You can obtain a free copy of your credit report from each of the three bureaus once per year at annualcreditreport.com, the official site run by Equifax, Experian, and TransUnion. Request all three reports and review them for any accounts or debts you do not recognize.
Look for any collection accounts, charge-offs, or late payments that may have been reported after you closed the checking account. If you see something that should not be there—a debt you paid, an account you never opened, or a late payment that was not your fault—you can dispute it directly with the bureau. The bureau must investigate within 30 days.
You can also check your credit score for free through many banks, credit card issuers, and free credit monitoring sites. Checking your own score does not lower it. If your score dropped after closing a checking account, the cause is almost certainly something other than the closure itself.
Frequently Asked Questions
Will closing a checking account lower my credit score?
No. Checking accounts are not reported to credit bureaus, so closing one will not appear on your credit report or affect your score. Only credit accounts—credit cards, loans, mortgages—are reported to credit bureaus.
Can a bank report me to credit bureaus for closing an account?
The closure itself is not reported. However, if you owe the bank money when you close—an unpaid overdraft, a fee dispute, or an outstanding loan—that debt can be reported to credit bureaus and will lower your score.
What is ChexSystems and does it hurt my credit?
ChexSystems is a separate banking history database, not a credit bureau. It tracks checking and savings account behavior. A closure reported to ChexSystems may prevent you from opening a new account at some banks, but it does not affect your credit score.
If I close my checking account, will my automatic bill payments still go through?
No. Once the account is closed, payments cannot be processed. You must move or cancel all automatic payments before closing. If you forget and a payment fails, your creditor may report the missed payment, which will lower your credit score.
How long does it take for a checking account closure to stop showing up in ChexSystems?
Most account closures stay in ChexSystems for five to seven years. If the closure involved an unpaid overdraft or dispute, it may remain longer. You can request your ChexSystems report for free at chexsystems.com to see what is being reported about you.