Closing a checking account does not affect your credit score
Closing a checking account has no impact on your credit at all. Your credit score is built from your history of borrowing money and paying it back — credit cards, loans, mortgages. A checking account is a place to store and spend money you already have. Banks do not report checking account activity to the three credit bureaus (Equifax, Experian, and TransUnion) that calculate your score.
That said, closing an account can create problems in other ways. If you close it while you still owe the bank money, or if you leave it with a negative balance, the bank may send that debt to a collection agency. A collection account will damage your credit. But the account closure itself — the act of ending the account — does nothing to your score.
Key Takeaways
- Checking accounts do not appear on your credit report, so closing one will not change your credit score.
- If you close an account with a negative balance or unpaid fees, the bank may report the debt to a collection agency, which will hurt your credit.
- Banks may report you to ChexSystems (a checking account history system) if you close an account with outstanding debt, which can make it harder to open accounts elsewhere.
- Closing an old checking account does not erase your history with that bank, and they can still pursue you for unpaid balances.
What banks report about your checking account
Banks keep their own internal record of your checking account history — how long you held the account, whether you bounced checks, whether you paid overdraft fees on time. But they do not send this information to credit bureaus. Your credit report only includes accounts where you borrowed money: credit cards, personal loans, car loans, mortgages, and student loans.
Some banks do report to ChexSystems, a separate system that tracks checking and savings account history. ChexSystems is not a credit bureau. It records things like unpaid overdrafts, bounced checks, and accounts closed due to fraud. If you have a negative mark on ChexSystems, it can make it harder to open a new checking account at another bank, but it will not show up on your credit report and will not affect your credit score.
When closing a checking account can create real problems
The danger in closing a checking account comes from what you owe, not from the closure itself. If you close an account while you still have an outstanding balance — whether from overdraft fees, a negative balance, or a service charge the bank has not yet collected — the bank will try to collect that money. If they cannot collect it, they may sell the debt to a collection agency.
A collection account will appear on your credit report and will lower your credit score. This is not because you closed the account; it is because you have an unpaid debt. The same damage would happen if you left the account open and did not pay.
Before you close a checking account, make sure your balance is zero or positive and that you have no outstanding fees or charges. Call the bank or check your online account to confirm. If there are pending transactions that have not yet cleared, wait for them to post before closing.
How closing an account affects your banking history
Closing a checking account does not erase your history with that bank. The bank keeps a record of the account indefinitely, even after it is closed. If you owed money on that account, the bank can still pursue collection years later, and they can still report it to ChexSystems or a collection agency.
If you had a good history with the account — no overdrafts, no bounced checks, no late fees — closing it will not hurt you. But it also will not help you. The account will no longer be active, so it will not continue to show positive history. If you are trying to build a banking record to open accounts elsewhere, keeping an account open (even if you do not use it much) can be more useful than closing it.
The difference between closing and switching banks
If you are closing a checking account because you want to move to a different bank, you do not have to worry about credit damage from the switch itself. You can open a new account at a new bank while your old account is still open, then close the old one once you have moved your direct deposits and automatic payments over.
The only credit-related risk is if you leave the old account with a negative balance or unpaid fees while you are switching. Make sure the old account is settled before you close it. Some people keep a small amount of money in their old account for a few weeks after switching, just to make sure no unexpected charges post after they have closed it.
What to do before you close a checking account
Before you close any checking account, take these steps in order:
- Check your balance online or call the bank to confirm it is zero or positive.
- Review your recent transactions to see if any checks or automatic payments are still pending.
- Wait for any pending transactions to clear.
- Confirm there are no outstanding fees or charges.
- Move any automatic deposits (like paychecks) to your new account.
- Move any automatic payments (like bills) to your new account or pay them manually one last time.
- Contact the bank and request account closure.
- Ask the bank to confirm in writing that the account is closed and the balance is zero.
Keep the written confirmation. If the bank later claims you owe money on a closed account, you will have proof that you settled it before closing.
Frequently Asked Questions
Will closing my checking account show up on my credit report?
No. Checking accounts do not appear on credit reports at all, whether they are open or closed. Only borrowing accounts like credit cards and loans show up on your credit report.
Can a bank report me to the credit bureaus for closing an account?
No, not for the closure itself. A bank can only report you to credit bureaus if you have an unpaid debt. If you close an account with a negative balance or unpaid fees and do not pay what you owe, the bank may report that debt to a collection agency, which will then appear on your credit report.
What is ChexSystems and will it hurt my credit?
ChexSystems is a checking account history system that banks use to see if you have had problems with accounts in the past. It is separate from credit bureaus. A negative mark on ChexSystems can make it harder to open a new checking account, but it will not affect your credit score.
If I close a checking account, can the bank still come after me for money I owe?
Yes. Closing an account does not erase your debt. If you owed money on the account, the bank can still try to collect it after the account is closed, and they can report it to a collection agency or pursue legal action.
Should I keep a checking account open even if I do not use it?
If you have a good history with the account, keeping it open can help if you are building a banking record. But if the account has monthly fees and you are not using it, closing it is fine — just make sure the balance is zero first.