Does Opening a Checking Account Lower Credit?

Ironically, even though lenders often ask about your current banking or savings accounts, the credit scoring systems used by lenders rarely gives credence to your banking habits. Opening a checking account, however, may have certain credit implications, especially if you misuse it. It can also help you open other accounts at banks.

Identification

Banks may check your credit report if your checking account comes with overdraft protection --- a small line of credit to protect you in case you write a check for more than you have in your account, according to Bargaineering. Alternatively, banks may require a credit check of all applicants regardless of whether they have overdraft protection.

Potential

If you open a bank account and acquire a negative balance, the bank could eventually send it to a collections agency, according to MyBankTracker. Also, although occasional credit inquiries have an insignificant impact on your credit, enough of them in a short period of time, usually more than three or four, begins to do noticeable harm to your credit score.

Alternative Consumer Report

Banks usually use an alternative to consumer credit reports that focus on your banking history called ChexSystems, according to Bankrate. If you frequently open and close bank accounts, it might look like you shop around for the rewards that banks often give for opening an account --- a negative in the view of most banks. Banks might also factor in your banking history when making a credit decision.

Tip

MyBankTracker suggests closing any unused or rarely used checking accounts and transferring them to your new account. Banks can charge administrative fees for dormant accounts, which could go to collections if you don't review your statements for these accounts. Banks often refuse to close an account until it has a zero balance --- even if you have just a few cents in the account.