Does Closing My Bank Accounts Affect My Credit?

Creditors, lenders, financial institutions, service providers and employers view your consumer credit score, which is based on the information documented on your consumer credit report. A bank account is a separate entity from a credit account, therefore, it is not reported on your consumer credit report.

Identification

Closing a bank account will not affect your consumer credit score; however, closing a line of credit will. Your oldest credit accounts make up 15 percent of your consumer credit score. Closing a line of credit will reduce your credit score. Allow your oldest lines of credit to remain open and active to boost your consumer credit score.

Other Affecting Factors

Other factors that affect your consumer credit score include payment history (which accounts for 35 percent of your consumer credit score), amount of debt (which accounts for 30 percent of your consumer credit score), variety of credit (which accounts for 10 percent of your consumer credit score), and frequency of new credit (which accounts for 10 percent of your consumer credit score).

Opening a new Bank Account Considerations

Some banks pull your consumer credit reports when determining if you qualify to open a new bank account. The bank must notify you beforehand and you must give written or verbal authorization. If the bank denies your checking account application, it must provide written notification of the reason(s) for the denial. Having multiple inquiries on your consumer credit report will cause a drop in your consumer credit score.

Credit Reports

Only credit accounts, public records, inquiries and personal information appear on a consumer credit report, not a bank account. If you fail to bring a delinquent balance current, the bank can report the information to your consumer credit file, which may hurt your consumer credit score.