Closing a bank account does not directly hurt your credit score
Closing a checking or savings account at your bank will not show up on your credit report and will not change your credit score. Banks do not report account closures to the three major credit bureaus — Equifax, Experian, and TransUnion — the way they report missed payments or defaults. Your credit score is built from borrowing history: credit cards, loans, mortgages, and payment patterns. A bank account, even one you have held for years, does not factor into that calculation.
The confusion often comes from mixing up two separate financial records. Your credit report tracks debt and repayment. Your banking history is tracked separately by ChexSystems and Early Warning Services, which are consumer reporting agencies that banks use to decide whether to open new accounts for you. Closing an account may affect your ability to open a new bank account elsewhere, but it will not touch your credit score.
Key Takeaways
- Closing a bank account does not appear on your credit report and has no direct impact on your credit score.
- Banks report account closures to ChexSystems or Early Warning Services, not to credit bureaus, so your credit score remains unchanged.
- Indirect credit damage can happen only if closing an account causes you to miss a loan or credit card payment.
- If you owe the bank money or have unpaid overdraft fees, the bank may send that debt to a collection agency, which will hurt your credit score.
- Closing an old account may slightly lower your credit score if it was one of your oldest accounts, but only because of how credit age is calculated, not because of the closure itself.
When closing a bank account might indirectly affect your credit
The only way closing a bank account can damage your credit score is if the closure creates a situation where you cannot pay your bills. For example, if you close your only bank account and then miss a credit card payment because you have no way to transfer funds, that missed payment will hurt your credit. The damage comes from the missed payment, not from the account closure.
Similarly, if you close an account while you still owe the bank money — such as unpaid overdraft fees or a negative balance — the bank may pursue collection action. Once a debt goes to a collection agency, it will appear on your credit report and lower your score. Again, the credit damage comes from the unpaid debt, not from closing the account itself.
Before you close any bank account, check your balance to make sure it is zero and that you have no pending charges or overdraft fees. If you do owe money, pay it before closing. If you are closing your primary account, set up a new one first so you have a way to receive paychecks and pay bills without interruption.
How account age affects your credit score when you close an account
Closing an old bank account will not hurt your credit score directly, but closing an old credit card or loan account can have a small negative effect. The difference matters because credit bureaus track credit accounts — credit cards, mortgages, auto loans — not bank accounts. If you close a credit card that has been open for ten years, your credit age (the average age of all your open accounts) will drop slightly, which may lower your score by a few points.
Bank accounts do not work this way. Closing a checking account you have held since 1995 will not lower your score because banks do not report to credit bureaus at all. Your credit report will not even know the account existed. This is one of the key differences between a bank account and a credit account.
What banks report to ChexSystems instead of credit bureaus
When you close a bank account, the bank reports the closure to ChexSystems or Early Warning Services, depending on which system the bank uses. These agencies track banking behavior — overdrafts, bounced checks, accounts closed due to fraud or mismanagement — but they do not report to credit bureaus. Their reports are used by other banks to decide whether to open a new account for you.
If you closed an account in good standing (no overdrafts, no fraud, no unpaid fees), the closure will not appear as negative on your ChexSystems record. If you closed an account because of repeated overdrafts or because the bank closed it due to suspicious activity, that information may stay on your ChexSystems report for up to five years and could make it harder to open a new bank account. But again, this does not touch your credit score.
How to close a bank account without creating problems
Before you close an account, take these steps in order. First, make sure your balance is zero and you have no pending transactions. Second, set up a new account at another bank if this is your primary account. Third, redirect any automatic deposits or bill payments to the new account. Fourth, contact the bank and request account closure in writing or through their online portal, and ask for written confirmation of the closure.
Do not simply stop using an account and assume it will close on its own. Inactive accounts can be closed by the bank, but you may still owe fees for inactivity, and those fees could go unpaid and eventually be reported to a collection agency. Getting written confirmation protects you if there is ever a dispute about whether the account was properly closed.
If the bank closed your account without your permission, ask them why. Banks sometimes close accounts due to repeated overdrafts, suspected fraud, or violation of account terms. Understanding the reason matters because it affects what appears on your ChexSystems record and whether other banks will accept you as a customer.
The difference between closing a bank account and closing a credit card
Closing a credit card can lower your credit score because credit cards are credit accounts that appear on your credit report. When you close a credit card, you lose the available credit on that card, which increases your credit utilization ratio (the percentage of your total credit limit that you are using). You also lose the payment history associated with that card. If it was one of your oldest accounts, closing it lowers your average account age.
Closing a bank account has none of these effects because bank accounts are not credit accounts. They do not have a credit limit, they do not contribute to your utilization ratio, and they do not appear on your credit report. The two closures are completely separate financial events with different consequences.
If you are trying to improve your credit score, closing a bank account should not be a concern. If you are worried about your credit, focus on credit cards and loans instead — paying down balances, making on-time payments, and keeping old accounts open.
What to do if a closed account appears on your credit report
If you see a bank account listed on your credit report, something unusual has happened. Bank accounts should not appear there. This could mean the bank reported unpaid fees or overdrafts as a debt, or it could be an error. Pull a free copy of your credit report from AnnualCreditReport.com (the official site run by the three credit bureaus) and look for any accounts you do not recognize or any negative marks tied to a bank account.
If you see a bank account on your report and you do not owe the bank money, file a dispute with the credit bureau that is reporting it. You can do this online through the bureau's website or by mail. Include a copy of your account closure confirmation and any documentation showing the account was in good standing when closed. The bureau has 30 days to investigate and remove the item if it is incorrect.
If you do owe the bank money and it has been sent to a collection agency, that is a separate issue. Contact the collection agency directly and ask for a pay-for-delete agreement, or negotiate a settlement. Once the debt is paid, ask the collection agency to remove the account from your credit report.
Frequently Asked Questions
Will closing my bank account hurt my credit if I have a loan with the same bank?
No. Closing a checking or savings account will not affect a loan you have with the same bank. The loan is a separate account that the bank reports to credit bureaus. Closing your deposit account does not change your loan status or payment history. However, make sure you have another way to make loan payments after you close the account.
Can a bank close my account and report it to credit bureaus?
A bank can close your account, but it will not report the closure itself to credit bureaus. If the bank closes your account because you owe money (overdraft fees, negative balance), and that debt goes unpaid, the bank may send it to a collection agency, which will report it to credit bureaus. The damage comes from the unpaid debt, not the closure.
Does closing a savings account affect my credit differently than closing a checking account?
No. Closing either type of bank account has the same effect on your credit score: none. Neither checking nor savings accounts appear on credit reports, so closing either one will not change your credit score in any way.
How long does a closed bank account stay on my ChexSystems record?
Negative information on your ChexSystems record (overdrafts, fraud, accounts closed by the bank) typically stays for five years. Positive information, like a closed account in good standing, may stay longer or be removed sooner depending on the bank's reporting practices. You can request a copy of your ChexSystems report for free once per year at ChexSystems.com.
If I close my oldest bank account, will my credit score drop?
No. Bank accounts do not appear on your credit report, so closing your oldest account will not lower your score. If you are concerned about account age affecting your credit, focus on credit cards and loans instead — those are the accounts that credit bureaus track.