Closing a bank account does not affect your credit score
Closing a checking or savings account has no direct impact on your credit. Credit bureaus—Equifax, Experian, and TransUnion—do not track bank account closures. They track credit activity: loans you take out, credit cards you open and use, and whether you pay those obligations on time. A bank account is not a credit product, so closing one leaves no mark on your credit report.
That said, the reason you close an account or what happens during the closure process can indirectly affect your credit if you are not careful. A bank may report you to ChexSystems (a banking history database) if you close an account with an outstanding negative balance, and that can make it harder to open accounts elsewhere. More commonly, people damage their credit by accident during the closure process—for example, by missing a bill payment because mail stopped reaching their old address.
Key Takeaways
- Bank account closures do not appear on your credit report and do not change your credit score.
- If you close an account with a negative balance, the bank may report you to ChexSystems, which affects your ability to open new bank accounts but not your credit score.
- You can damage your credit indirectly by missing bill payments after closing an account if you do not redirect mail or update payment methods.
- Closing a credit card account can hurt your credit score, but closing a bank account cannot.
Why bank accounts and credit cards are treated differently
A bank account is a place to store money. A credit card is a borrowed line of money that you repay. Credit bureaus care about the second one because it shows lenders how reliably you handle debt. When you close a credit card, your credit utilization ratio changes (the percentage of available credit you are using), and your credit history becomes shorter, both of which can lower your score.
A bank account closure tells credit bureaus nothing about your ability to repay debt, so it does not factor into any credit calculation. You could close every bank account you own tomorrow and your credit score would remain exactly the same.
How a negative balance can follow you to ChexSystems
ChexSystems is a consumer reporting agency that banks use to check your banking history before opening a new account. It is separate from credit bureaus. If you close an account while you owe the bank money—because of overdraft fees, unpaid service charges, or other debts—the bank may report that negative balance to ChexSystems.
A ChexSystems report does not affect your credit score, but it can prevent you from opening a new checking or savings account at most banks for several years. Some banks will still work with you if you have a ChexSystems record, but they are fewer and often charge higher fees. To avoid this, pay any outstanding balance before you close the account, or work out a payment plan with the bank if you cannot pay it all at once.
The real credit risk: missing payments after you close
The most common way people accidentally damage their credit during a bank account closure is by losing track of bill payments. If you close your checking account and forget to update your address with creditors, credit card companies, or loan servicers, their statements and payment reminders will go to your old address. You might miss a payment deadline without realizing it.
A single missed payment reported to credit bureaus can lower your score by 100 points or more, depending on your current score and credit history. To prevent this, update your mailing address with every creditor, lender, and service provider before you close the account. If you have automatic payments set up from the account you are closing, move them to your new account at least a week before the closure date.
What to do before closing to protect yourself
Start by checking your account for any outstanding balances or fees. Log into your online banking and look at the account statement for the past month. If there are overdraft fees or other charges, contact the bank and ask whether they will waive them or let you set up a payment plan.
Next, redirect all mail to your new address with the post office, or update your address directly with every company that sends you bills or statements. This includes credit card companies, loan servicers, utilities, insurance companies, and any subscription services. Change the payment method on any automatic payments—move them from the closing account to your new account or to a credit card.
Wait at least one full billing cycle after you have made these changes before you close the account. This gives you time to catch any missed updates. On the day you close, ask the bank for written confirmation of the closure and keep that document for your records.
What happens if you close an account with pending transactions
If you close an account while a check is still in the mail or a payment is pending, the bank will typically honor the transaction if it arrives before the account is fully closed. However, if a check or payment arrives after the account closes, it will bounce or be rejected. The merchant or payee may charge you a returned-check fee, and if it was a bill payment, you could be marked as late.
To avoid this, give yourself at least two weeks after closing to make sure all outstanding checks have cleared and all pending payments have posted. You can check your account online to see the status of recent transactions before you finalize the closure.
Closing multiple accounts at once and your credit
If you are closing several bank accounts in a short period, your credit score will not be affected by the closures themselves. However, if you are also closing credit cards at the same time, that can hurt your score. Banks sometimes close accounts if they detect suspicious activity or if you have not used the account in a long time, and they may report this to ChexSystems.
If you are closing accounts because you are moving or consolidating, do it deliberately and in a planned order: close bank accounts first, then address any credit cards separately. This separation keeps the two processes distinct and prevents confusion about which closures might affect your credit.
Frequently Asked Questions
Will closing a bank account show up on my credit report?
No. Bank account closures do not appear on credit reports at all. Credit bureaus only track credit products like loans and credit cards, not deposit accounts. Your credit score will not change when you close a checking or savings account.
What is ChexSystems and how does it differ from my credit score?
ChexSystems is a banking history database that banks use to decide whether to open accounts for you. It tracks things like overdrafts and unpaid balances, but it is not connected to credit bureaus. A ChexSystems record can prevent you from opening new bank accounts, but it does not affect your credit score.
Can I close a bank account if I have a negative balance?
Most banks will not let you close an account with a negative balance. You will need to pay the outstanding amount first. If you do not pay, the bank may close it for you and report the debt to ChexSystems, which can make it harder to open accounts elsewhere.
What should I do with automatic payments before closing my account?
Move all automatic payments to your new bank account or to a credit card at least one week before the closure date. Log into each biller's website and update the payment method yourself rather than relying on the bank to transfer the information. Verify that at least one payment has gone through successfully before you close the old account.
If I close a credit card instead of a bank account, will that hurt my credit?
Yes. Closing a credit card can lower your credit score because it reduces your total available credit and may increase your credit utilization ratio. Closing a bank account has no effect on your credit score because bank accounts are not credit products.