Closing a checking account does not directly lower your credit score
Closing a checking account has no impact on your credit score because checking accounts do not appear on your credit report. Credit bureaus—Equifax, Experian, and TransUnion—track only credit activity: loans you have taken, credit cards you carry, payment history, and amounts owed. A checking account is a deposit account, not a credit account, so the act of closing it sends no information to the bureaus at all.
The confusion often comes from mixing up two separate financial records. Your bank maintains an account history with ChexSystems or Early Warning Services (systems that track deposit account behavior), but these records are separate from your credit file. Closing a checking account may affect your banking history with those systems, but it will not touch your credit score.
That said, there are indirect ways closing a checking account could affect your credit if you are not careful about the timing and what you do afterward. Those scenarios are worth understanding so you can avoid them.
Key Takeaways
- Checking accounts do not report to credit bureaus, so closing one has no direct effect on your credit score.
- Your bank reports your account to ChexSystems or Early Warning Services, which track deposit account history but are separate from your credit file.
- Closing a checking account can indirectly hurt your credit if you miss a bill payment because you forgot to update automatic payments or change your address.
- If you close an account with an outstanding overdraft or negative balance, the bank may send it to collections, which will damage your credit.
- Closing a checking account tied to a credit-builder loan or secured credit card could affect your credit if the account closure triggers the loan or card to close as well.
When closing a checking account might hurt your credit indirectly
The real risk comes from what happens to your bills and automatic payments when you close the account. If you have set up automatic bill payments—insurance, utilities, loan payments, credit card payments—and you close the checking account without redirecting those payments to a new account, those payments will fail. Late or missed payments report directly to credit bureaus and can lower your score by 100 points or more, depending on how late the payment is and your current score.
The same applies to direct deposit. If your paycheck goes to the account you are closing and you do not update your employer with a new account number, your income stops arriving. This does not hurt your credit directly, but it can lead to missed payments on other obligations, which does.
Another scenario: if you close a checking account while it carries a negative balance—money you owe the bank due to overdrafts—and you do not pay that balance before closing, the bank will pursue collection. A debt sent to collections appears on your credit report and damages your score significantly.
Overdrafts and negative balances before closure
Before you close any checking account, confirm the balance is zero or positive. Log into your account online or call the bank to verify. If the account shows a negative balance, pay it immediately. The bank will not let you close an account with money owed, and if you stop using the account without settling the debt, the bank will eventually send it to a collection agency.
Once a debt goes to collections, it appears on your credit report for seven years from the date of first delinquency. Even if you pay it later, the collection account remains on your report, though some lenders weight older collections less heavily than recent ones.
Steps to close a checking account without damaging your credit
Start by opening a new checking account at your current bank or a different bank. Do not close the old account until the new one is active and you have transferred any funds you want to keep.
Next, update all automatic payments. Log into each service—your credit card company, loan servicer, utility company, insurance provider—and change the payment method to your new account. Do this at least one week before you close the old account to make sure the first payment goes through without issue.
Update your employer's payroll system with your new account number so direct deposit routes to the correct place. If you receive government payments like Social Security or unemployment benefits, update those as well through the relevant agency's website or by phone.
Check your address on file with your bank. If you have moved, update it so any statements or notices from the bank reach you. This matters because if there is a problem with the account closure, you need to know about it.
Finally, wait at least one full billing cycle after redirecting all payments before you close the old account. This gives you time to confirm that each payment posted to your new account without problems. Once you are confident everything has moved over, contact the bank and request closure. Ask the bank to confirm the account balance is zero before they close it.
Credit-builder accounts and secured cards tied to checking accounts
Some banks offer credit-builder savings accounts or secured credit cards that are linked to a checking account. If you close the checking account, the bank may automatically close the linked savings or credit account as well. This can affect your credit score because closing a credit account changes your credit mix and can reduce your available credit, both of which factor into your score.
Before closing a checking account, ask your bank whether any credit products are linked to it. If they are, you may want to keep the checking account open or transfer the credit product to a different account first. The credit-builder account or secured card itself is what matters for your credit score, not the checking account it is tied to—but the closure of one can trigger the closure of the other.
What happens to your ChexSystems record when you close an account
ChexSystems and Early Warning Services track your deposit account history. When you close a checking account, that closure is recorded in your ChexSystems file. However, this record does not affect your credit score. It may affect your ability to open new checking accounts at other banks in the future if you have a history of overdrafts, bounced checks, or unpaid negative balances, but that is a separate issue from credit scoring.
You can request a copy of your ChexSystems report for free once per year at www.chexsystems.com. If there are errors on the report—such as a negative balance you already paid—you can dispute them with ChexSystems directly.
Frequently Asked Questions
Will closing my checking account show up on my credit report?
No. Checking accounts do not appear on your credit report at all. Only credit accounts—credit cards, loans, lines of credit—report to credit bureaus. Closing a checking account sends no information to Equifax, Experian, or TransUnion.
Can a bank close my checking account and hurt my credit?
A bank can close your account, but the closure itself does not hurt your credit. However, if the account has a negative balance when it closes and you do not pay it, the bank may send the debt to collections, which will damage your credit. Always pay any negative balance before closure.
What if I forget to update a bill payment before closing my checking account?
The payment will fail, and you may be marked late with that creditor. Late payments report to credit bureaus and lower your score. Contact the creditor immediately, explain the situation, and ask whether they can waive the late fee. Then update your payment method to your new account right away.
Does closing a checking account affect my credit mix?
No. Credit mix refers to the types of credit accounts you have—credit cards, installment loans, lines of credit. Checking accounts are not credit accounts, so they do not factor into your credit mix at all.
If I have a secured credit card linked to my checking account, will closing the checking account close the card?
It depends on the bank. Some banks automatically close linked credit products when you close the checking account; others do not. Contact your bank before closing the checking account to find out. If closure would happen automatically, you may want to keep the checking account open or move the secured card to a different account first.