Closing a checking account does not affect your credit score at all
A checking account closure has zero impact on your credit score because banks do not report checking account activity to credit bureaus. Your credit score is built from credit history — credit cards, loans, payment history, and amounts owed. A checking account is a deposit account, not a credit account, so the three major credit bureaus (Equifax, Experian, and TransUnion) never see it.
You can close a checking account without worrying about damage to your credit. The bank will not penalize your score, and the credit bureaus will not record the closure. This is true whether you close the account in good standing, with a negative balance, or after years of use.
Key Takeaways
- Checking accounts are deposit accounts, not credit accounts, so they do not appear on your credit report or affect your credit score.
- Closing a checking account leaves no record with credit bureaus and causes no score damage, even if you close multiple accounts.
- Banks may report unpaid fees or overdrafts to ChexSystems (a banking history database), which can affect your ability to open new accounts but is separate from your credit score.
- Closing a credit card account can affect your score, but closing a checking account cannot.
Why checking accounts do not show up on credit reports
Credit bureaus track credit behavior — how you borrow money and repay it. A checking account is money you already own, so it tells nothing about your creditworthiness. Banks care about whether you pay back loans and credit cards on time. They do not care whether you keep a checking account open.
The only banking information that reaches credit bureaus is credit-related: credit card balances, loan payments, late payments, and defaults. Deposit accounts like checking and savings are invisible to the credit reporting system. This is why you can have ten checking accounts or zero checking accounts and your credit score will not change.
What banks do track when you close an account
While credit bureaus ignore checking accounts, banks use a separate system called ChexSystems to track your banking history. ChexSystems records account closures, overdrafts, bounced checks, and unpaid fees. If you close an account with a negative balance or outstanding fees, that information goes into ChexSystems, not your credit report.
A ChexSystems record can make it harder to open a new checking account at another bank, because banks check ChexSystems before accepting new customers. However, ChexSystems is not your credit score and does not affect credit-based decisions like loan approval or credit card offers. The two systems are separate.
If you are closing an account, pay any overdraft fees or negative balance before you do. This keeps the closure clean and prevents ChexSystems from recording a problem account.
The difference between closing a checking account and closing a credit card
Closing a credit card account can affect your credit score, but closing a checking account cannot. The difference is that credit cards are credit accounts — they report to credit bureaus. Checking accounts are deposit accounts — they do not.
When you close a credit card, your credit utilization ratio may change (the percentage of your available credit you are using), and your average account age may shift if it was an old card. Both of these factors affect your score. Closing a checking account triggers none of these effects because checking accounts do not factor into credit scoring at all.
Reasons people close checking accounts and what happens next
People close checking accounts for many reasons: switching banks, consolidating accounts, avoiding fees, or moving to a different state. None of these reasons create credit score damage. The closure itself is neutral to your credit.
After you close an account, the bank may send you a final statement showing the closure date and any remaining balance. If you had automatic payments or direct deposits set up, you will need to update those with your new account information before the closure takes effect. The bank will typically give you a grace period to do this, usually 30 days.
Once the account is closed, it will no longer appear in your online banking portal or on your statements. Old statements may still be available for download for a period of time (usually 7 years), depending on the bank's record-keeping policy.
When closing a checking account might create problems elsewhere
Although closing a checking account does not hurt your credit score, it can create practical problems if you are not careful. If you close an account without redirecting automatic bill payments, those payments will fail and you may incur late fees on the bills themselves (not the bank account). This can damage your credit if the missed payments reach your creditors.
Similarly, if you close an account with an outstanding negative balance or unpaid fees, the bank may send the debt to a collection agency. A collection account on your credit report will damage your score. The damage comes from the unpaid debt, not from the account closure itself.
To avoid these problems, settle any balance before closing, redirect all automatic payments to your new account, and confirm the closure with the bank in writing.
How to close a checking account without complications
Contact your bank and ask about their account closure process. Most banks let you close an account online, by phone, or in person. Before you close, take these steps:
- Pay any overdraft fees or negative balance in full.
- Stop all automatic payments and direct deposits, or redirect them to your new account.
- Wait for any pending transactions to clear (usually 5 to 10 business days).
- Withdraw any remaining balance or request a check.
- Confirm the closure date with the bank and ask for written confirmation.
After closure, keep your final statement and confirmation letter for your records. If you later need proof that the account is closed, you will have documentation.
Frequently Asked Questions
Will closing a checking account lower my credit score?
No. Checking accounts do not report to credit bureaus, so closing one has no effect on your credit score. Your score is based on credit history (credit cards, loans, payment history), not deposit accounts.
Can closing multiple checking accounts hurt my credit?
No. You can close as many checking accounts as you want without credit score damage. Each closure is invisible to credit bureaus. However, closing many accounts in a short time may make it harder to open new accounts at other banks, because ChexSystems will show multiple recent closures.
What is the difference between ChexSystems and my credit score?
ChexSystems tracks your banking history (overdrafts, bounced checks, account closures). Your credit score tracks your credit history (loans, credit cards, payment behavior). They are separate systems. A ChexSystems record can block you from opening a new bank account but will not affect your credit score or loan decisions.
If I close my checking account, can I still get a loan or credit card?
Yes. Closing a checking account does not appear on your credit report and will not affect loan or credit card decisions. Lenders look at your credit score and credit history, not your checking account status. You can be approved for a loan or credit card the same day you close a checking account.
What happens to my direct deposits if I close my checking account?
Direct deposits will fail if you do not redirect them to a new account before the closure. Contact your employer or the organization sending the deposit and provide your new account number. Do this at least two weeks before you close the old account to avoid missed payments.