Yes, you can close your bank account and keep your credit card, but the card stops working if the bank that issued it closes
The answer depends on who issued your credit card. If your card comes from the same bank whose account you want to close, closing that account does not automatically close the card — but the card becomes unusable because the bank no longer exists to process your transactions. If your credit card comes from a different bank than the one you are closing, you can close the bank account without affecting the card at all.
The confusion happens because people often think of a bank account and a credit card as connected. They are not. A bank account is a place to store money and make transfers. A credit card is a line of credit issued by a bank or credit card company. You can have one without the other, and closing one does not force you to close the other — unless they come from the same issuer and that issuer goes out of business.
Key Takeaways
- Closing a bank account does not close a credit card issued by a different bank, and the card keeps working normally.
- If your credit card and bank account are both from the same bank, closing the account does not close the card, but the card stops working because the bank no longer processes transactions for it.
- Before closing a bank account, check whether any automatic payments or recurring charges are tied to that account, because they will fail after closure.
- You can update your credit card's billing address and payment method before closing the bank account to avoid service interruptions.
- Closing a bank account has no direct effect on your credit score, but closing a credit card can lower your score by reducing available credit.
When your credit card and bank account are from different banks
If your credit card is issued by Bank A and your checking or savings account is at Bank B, closing the account at Bank B has zero effect on the credit card from Bank A. The card continues to work exactly as it did before. You can use it to make purchases, pay bills, and carry a balance. The card's issuer never needs to know you closed an account somewhere else.
The only thing you need to do is make sure you have another way to pay your credit card bill. If you were paying the card from the bank account you are closing, you will need to set up a new payment method — a different bank account, a debit card, or an online payment through the card issuer's website. Most credit card issuers let you change your payment method in their online portal or by calling the number on the back of your card.
When your credit card and bank account are from the same bank
If both your credit card and your bank account come from the same bank, closing the account does not automatically close the card. The card remains open in the bank's system. However, the card stops working for purchases because the bank that issued it no longer has an active relationship with you as a customer. Merchants' payment systems will decline the card because the issuing bank is no longer processing transactions for you.
This is different from the bank formally closing the card. The card is technically still open, but it is dead in practice. If you want to keep using a credit card from that bank, you would need to keep at least one account open with them — usually a checking or savings account, though some banks allow you to keep a credit card open without any deposit account.
Call the bank's customer service line before you close your account and ask whether you can keep the credit card active without maintaining a deposit account. Some banks say yes; others require you to keep at least a savings account open. If they require an account, you can often open a no-fee savings account just to keep the card alive.
Automatic payments and recurring charges you need to handle first
Before you close any bank account, spend time identifying what is still being paid from it. Log into the account and look for automatic transfers, recurring bill payments, and subscription charges. Common ones include insurance premiums, utility bills, gym memberships, streaming services, and loan payments. If you close the account while these are still set to draw from it, the payments will fail, and you may face late fees or service interruptions.
For each recurring charge, update the payment method to your new bank account or credit card before you close the old account. Most companies let you change your payment information online. If you are unsure whether a charge is still active, search your email for confirmation messages or log into the company's website to check your account settings.
Give yourself at least two weeks between updating your payment methods and closing the account. This buffer catches any charges that are scheduled to go out during that window and ensures they process from your new payment method instead.
How closing a bank account affects your credit score
Closing a bank account has no direct effect on your credit score. Banks do not report deposit accounts to the credit bureaus, so closing a checking or savings account does not appear on your credit report. Your score is based on credit accounts — credit cards, loans, and lines of credit — not on deposit accounts.
However, if you close a credit card, that can lower your score. Closing a card reduces your total available credit, which increases your credit utilization ratio (the percentage of your credit limit you are using). A higher utilization ratio can drop your score by 10 to 50 points, depending on how much credit you have available overall. If you want to keep your score stable, keep the credit card open even if you are not using it regularly.
Steps to close your bank account safely
Start by withdrawing or transferring any remaining balance in the account. You can do this online, at an ATM, or by visiting a branch. Some banks charge a fee if you close an account within a certain period (often 90 days to six months) of opening it, so check your account agreement first.
Next, update all automatic payments and recurring charges to a different account or payment method, as described above. Then contact the bank to close the account. You can usually do this by phone, in person at a branch, or sometimes online through your account settings. The bank will confirm the account is closed and may ask you to destroy your debit card.
Ask the bank in writing (email counts) to confirm the account is closed and to provide a final statement. Keep this confirmation for your records. If the bank later tries to charge you a fee or claims the account is still open, you will have proof of the closure date.
What happens to your credit card if the bank fails
If the bank that issued your credit card goes out of business, the card stops working immediately. The Federal Deposit Insurance Corporation (FDIC) protects deposit accounts up to $250,000 per account holder per bank, but credit cards are not deposit accounts — they are lines of credit. When a bank fails, the FDIC does not transfer credit cards to another bank the way it does with deposit accounts.
If you have a balance on the card when the bank fails, you will be notified about how to pay it off or dispute charges. But you will not be able to use the card for new purchases. This is why it is risky to keep all your financial products with one bank — if that bank fails, you lose both your deposit account and your credit card at the same time.
Frequently Asked Questions
Will closing my bank account hurt my credit score?
No. Closing a bank account does not affect your credit score because banks do not report deposit accounts to credit bureaus. Your score is based only on credit accounts like credit cards and loans. However, closing a credit card can lower your score by reducing your available credit.
Can I keep using my credit card if I close the bank account it's linked to?
Yes, if the credit card is from a different bank. If both are from the same bank, the card will stop working because the bank no longer has an active relationship with you. Call the bank before closing your account to ask whether you can keep the card open without a deposit account.
What if I have automatic payments set up on the bank account I want to close?
You must update each automatic payment to a different account or payment method before closing the account. If you do not, the payments will fail and you may face late fees or service interruptions. Give yourself at least two weeks to make these changes before closing the account.
Do I need to tell my credit card company I'm closing my bank account?
Only if you were paying the card from that bank account. You will need to update your payment method in the card issuer's system so your bill payments go to a different account. You can do this online or by calling the number on the back of your card.
What if the bank that issued my credit card goes out of business?
Your credit card will stop working immediately. The FDIC protects deposit accounts but not credit cards, so there is no automatic transfer to another bank. You will be notified about how to pay off any balance, but you will not be able to use the card for new purchases.