Closing a checking account does not affect your credit score
Closing a checking account has no direct impact on your credit. Banks do not report checking account activity to credit bureaus, so opening or closing one will not show up on your credit report. Your credit score is built from borrowing history — credit cards, loans, mortgages — not from the deposit accounts you use to hold money.
That said, closing a checking account can create problems if you are not careful about the timing and what you owe. The account itself will not hurt you, but the events that sometimes follow closing one might.
Key Takeaways
- Checking accounts do not appear on your credit report, so closing one will not lower your credit score.
- If you close an account with an outstanding balance or unpaid fees, the bank may send the debt to a collection agency, which will damage your credit.
- Closing an account can affect your ability to get a loan if the bank reports you to ChexSystems, a checking account history database that lenders sometimes check.
- The safest approach is to pay any fees or balances owed, wait for pending transactions to clear, and confirm the account is at zero before closing.
When closing a checking account can hurt your credit indirectly
The damage happens when you leave money owed to the bank. If you close an account while you still owe overdraft fees, negative balance charges, or other bank fees, the bank will try to collect. If you do not pay, the bank can send the debt to a collection agency. A collection account will appear on your credit report and lower your score.
This is rare — most people close accounts cleanly — but it is the main way a checking account closure can touch your credit. The closure itself does nothing. The unpaid debt does.
Another indirect risk: if you close an account because of overdrafts or bounced checks, the bank may report you to ChexSystems, a database that tracks checking account history. ChexSystems is not a credit bureau, so it does not affect your credit score directly. But lenders and banks sometimes check it before opening new accounts, and a negative mark can make it harder to open a new checking or savings account elsewhere.
How to close a checking account without creating problems
Before you close, make sure the account balance is zero or positive. If you have a negative balance, deposit money to cover it. Pay any outstanding fees the bank has charged. Call the bank or visit in person and ask if there are any pending transactions that have not cleared yet — if there are, wait for them to post before closing.
Once you have confirmed the balance is zero and no transactions are pending, you can close the account. Ask the bank for written confirmation that the account is closed and the balance is settled. Keep this confirmation in case questions come up later.
If the bank has already reported you to ChexSystems for overdrafts or unpaid fees, you can dispute the report or request that it be removed once you have paid what you owe. Contact ChexSystems directly to see what is on file and what your options are.
The difference between closing an account and being closed by the bank
If you close the account yourself, you control the process and can make sure everything is settled first. If the bank closes your account — usually because of repeated overdrafts, fraud concerns, or violation of account terms — the situation is different. A bank-initiated closure may be reported to ChexSystems and can make it harder to open accounts elsewhere.
If a bank closes your account, ask them in writing why they closed it and whether they reported it to ChexSystems. If they did, you may be able to dispute the report or ask them to remove it once you have resolved whatever triggered the closure.
What happens to automatic payments and direct deposits
Before you close, redirect any automatic payments or direct deposits to your new account. If a payment tries to go through after the account is closed, it will bounce, and you may face late fees or damage to your payment history with that creditor. This is separate from your credit score, but it can cause real problems — a missed utility payment or loan payment can hurt your credit even if the checking account closure itself does not.
Contact your employer, benefits provider, or anyone else sending you direct deposits and give them your new account number. For automatic payments, log into each service and update the account information. Do this before you close the old account, not after.
Checking account closure and your banking history
Your banking history is tracked separately from your credit history. Banks use ChexSystems and a similar service called Early Warning Services to see whether you have had problems with checking or savings accounts in the past. A clean closure — zero balance, no unpaid fees — will not create a negative mark on either system.
If you have had overdrafts or bounced checks, those may already be on your ChexSystems report. Closing the account does not erase them, but it does stop new activity from being added. If you want to improve your banking history, the best approach is to use your new account responsibly for at least a year or two, then request that ChexSystems update your file.
Frequently Asked Questions
Will closing a checking account lower my credit score?
No. Checking accounts do not report to credit bureaus, so closing one will not appear on your credit report or affect your score. Only borrowing activity — credit cards, loans, mortgages — shows up on your credit report.
What if I close an account with a negative balance?
The bank will try to collect the money you owe. If you do not pay, they may send the debt to a collection agency, which will report it to the credit bureaus and lower your score. Pay any negative balance before closing the account.
Can I close a checking account if I have pending transactions?
You can, but it is risky. Pending transactions may still post after closure, and if the account is closed, the payment may bounce. Wait for all pending transactions to clear before closing, or redirect them to your new account first.
Does ChexSystems affect my credit score?
No. ChexSystems is a banking history database, not a credit bureau. It does not affect your credit score, but banks check it before opening new accounts, so a negative mark can make it harder to open a new checking account elsewhere.
What should I do if the bank closes my account without asking?
Ask the bank in writing why they closed it and whether they reported it to ChexSystems. If they did, you can dispute the report or ask them to remove it once you have resolved the issue that triggered the closure. Keep all written communication from the bank.