Opening a checking or savings account does not affect your credit score
Banks do not report checking or savings accounts to the three major credit bureaus—Equifax, Experian, and TransUnion. Your credit score is built only from credit activity: loans you took out, credit cards you opened, payments you made or missed, and how much of your available credit you are using. A bank account, no matter how much money sits in it or how long you have held it, does not appear on your credit report at all.
This is true whether you open the account online, at a branch, or through a credit union. It is also true whether the account is checking, savings, money market, or a certificate of deposit. The bank will pull your information to verify your identity and check for fraud history, but that pull does not touch your credit score.
Key Takeaways
- Opening a checking or savings account has no effect on your credit score because banks do not report deposit accounts to credit bureaus.
- Banks may perform a soft inquiry to verify your identity and check ChexSystems records, but this does not lower your score.
- A hard inquiry—which does affect credit—only happens if you are borrowing money, such as applying for a loan or overdraft protection.
- Having a bank account can indirectly help your credit by making it easier to pay bills on time and avoid late fees.
- Closing an old account will not hurt your score, but opening a new one also will not help it.
Why banks do not report deposit accounts to credit bureaus
Credit bureaus track credit behavior—how you borrow and repay money. A checking account is not a loan or a line of credit. You own the money in it. The bank is holding your funds, not lending you theirs. Because no credit is involved, there is nothing for the bureau to record.
This separation exists by design. Your credit score measures risk to a lender: will you pay back what you borrowed? A savings account tells a lender nothing about that. Someone with $100,000 in savings might still default on a credit card. Someone with no savings might pay every bill on time. The account balance is irrelevant to credit risk.
The difference between soft and hard inquiries
When you open a bank account, the bank will look up your information. This is called a soft inquiry. It does not lower your credit score. Soft inquiries are used to verify who you are, check for fraud, and sometimes review your banking history through ChexSystems, a database that tracks overdrafts, bounced checks, and closed accounts.
A hard inquiry does lower your score by a few points, but it only happens when you are borrowing money. If you apply for a loan, a credit card, or overdraft protection linked to your checking account, the lender will perform a hard inquiry. The account itself will not trigger one.
You can ask the bank whether they will perform a hard inquiry before you open an account. Most do not, but some banks or credit unions may do so if you are applying for overdraft protection or a line of credit at the same time.
How a bank account can indirectly support your credit
While opening an account does not boost your score, having one can make it easier to build good credit. A bank account gives you a place to keep money for bills, which reduces the chance you will miss a payment. Late payments are one of the biggest factors in credit scoring, so avoiding them matters far more than any account you open.
Some banks also offer overdraft protection or linked credit products. If you use these responsibly—paying them back on time—they can help your credit. But the checking account itself is neutral. The credit benefit comes only from the borrowing and repayment, not from the deposit account.
What happens if you close a bank account
Closing a checking or savings account will not lower your credit score, just as opening one will not raise it. The account was never part of your credit report, so its closure changes nothing about your credit history.
However, if you close an account and then overdraft it or leave a negative balance, the bank may send that debt to a collection agency. A collection account will damage your credit. To avoid this, make sure your balance is zero or positive before you close, and confirm with the bank that the account is fully settled.
When a bank account does affect your ability to borrow
Banks and lenders sometimes look at your banking history even though they do not see it on your credit report. They use ChexSystems, a separate database that tracks overdrafts, bounced checks, and accounts closed due to mismanagement. If you have a history of overdrafts or fraud, a bank may refuse to open an account or may charge higher fees.
This is different from your credit score, but it can still block you from opening accounts at some institutions. If you have been denied for a bank account, you can request your ChexSystems report for free once per year at www.chexsystems.com. If there are errors, you can dispute them.
The difference between a bank account and a credit-builder loan
If you are trying to build credit, a bank account alone will not help. You need credit activity—a loan or credit card that gets reported to the bureaus. Some banks offer credit-builder savings accounts or credit-builder loans, which are designed to help people with no credit or poor credit.
A credit-builder loan works by having the bank hold your money in a savings account while you make monthly payments toward a loan. Once you finish paying, you get the money back. The payments are reported to credit bureaus, so this type of product can raise your score. A regular savings account, by contrast, will not.
Frequently Asked Questions
Will opening a bank account lower my credit score?
No. Banks do not report deposit accounts to credit bureaus, so opening a checking or savings account has no effect on your credit score. The bank may perform a soft inquiry to verify your identity, but this does not lower your score.
Can I open a bank account if I have bad credit?
Your credit score does not determine whether you can open a bank account. Banks check ChexSystems instead, which tracks overdrafts and fraud. If you have been denied before, request your ChexSystems report to see why and dispute any errors.
Does having money in a savings account help my credit?
No. The amount of money you have does not appear on your credit report. Credit scores measure borrowing and repayment, not savings. A high balance will not raise your score, and a low balance will not lower it.
What if the bank performs a hard inquiry when I open an account?
A hard inquiry lowers your score by a few points, but most banks do not perform one for deposit accounts. If you are also applying for a loan, credit card, or overdraft protection, the bank may do a hard inquiry for that product. Ask before you apply.
Will closing my bank account hurt my credit?
Closing a deposit account will not affect your credit score. However, if you leave a negative balance or overdraft the account after closing, the bank may send it to collections, which will damage your credit. Make sure your balance is zero before you close.