Does Opening Multiple Bank Accounts Hurt My Credit Score?

Opening multiple lines of credit in a short time period usually is a credit score no-no, because it makes lenders question why you need so much available credit. Because you can use a bank account in many of the same ways you use a line of credit, it's reasonable to assume that opening multiple bank accounts also would ding your credit, but this isn't the case most of the time.

The General Rule

Bank accounts are backed by the Federal Deposit Insurance Corporation, and banks' products and services tend to focus on savings and checking. For this, you give the bank your own money and aren't borrowing from someone else to spend. Thus, opening multiple bank accounts generally has no effect on your credit score.

ChexSystems

Credit card companies report you to credit bureaus if you violate the terms of your credit agreement. Similarly, banks report you to ChexSystems, an agency that tracks your history with banks. If you've written bad checks, overdrawn your accounts or otherwise used your accounts inappropriately, your bank can indicate that on your ChexSystems history. Negative points on your ChexSystems report take five years to go away.

The ChexSystems and Credit Score Connection

Although a report to ChexSystems doesn't directly affect your credit score, some lenders, creditors or other banks might look at your ChexSystems report when you apply for financing. Based on the report, they might deny your applications. With fewer financial options available to you, it's easier to get into debt or miss payments. That does directly affect your credit score, as does any late payment, settlement or bankruptcy appears on your credit history.

The Credit Card Account Exception

In some cases, banks pair with credit card companies such as Visa and MasterCard to provide credit card accounts. If you open multiple credit card accounts through your bank, these accounts are connected directly to your credit score, just like any other credit card account. If you can't manage one of these cards, you could take a double hit with both a bad credit and ChexSystems report. Because most credit-card companies offer loss and theft protection on their cards, it isn't necessary to get a credit card through your bank, although you can do so if it is more convenient for you to work with a single institution.