Closing a bank account does not directly affect your credit score
Closing a checking or savings account at your bank has no impact on your credit score because banks do not report account closures to credit bureaus. Your credit score is built from credit history — loans, credit cards, payment history, and amounts owed — not from deposit accounts. You can close a bank account without worrying that it will lower your score or create a record that lenders will see.
The confusion often comes from mixing up two different financial systems. Your bank reports to banking networks like ChexSystems, which track overdrafts and fraud. Credit bureaus like Equifax, Experian, and TransUnion track credit behavior. These are separate. A bank account closure appears nowhere on your credit report.
Key Takeaways
- Closing a bank account does not appear on your credit report and will not change your credit score in any direction.
- Banks report account closures to ChexSystems, a banking history database, not to credit bureaus.
- 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 score.
- Closing a credit card account can affect your score because credit cards are credit products, but closing a bank account cannot.
When closing a bank account might hurt your credit indirectly
While the account closure itself does not touch your credit score, what happens during the closure can. If you close an account with an outstanding balance — perhaps an overdraft you did not pay back, or fees the bank charged you — the bank may refer that debt to a collection agency. A collection account on your credit report will lower your score significantly.
Before you close any account, check the balance and make sure there are no pending charges or overdrafts. If there are, pay them first. Once the account shows a zero balance with no holds or disputes, you can close it safely. Ask the bank in writing to confirm the account is closed with no outstanding obligations.
The difference between bank accounts and credit cards
The reason people sometimes confuse this issue is that closing a credit card account can affect your credit score, but closing a bank account cannot. Credit cards are credit products — they report to credit bureaus and factor into your score. Closing a credit card can lower your score because it reduces your available credit and changes the ratio of credit you are using to credit available to you.
Bank accounts are deposit accounts. They have no credit component. Even if you have had the account for decades, closing it leaves no mark on your credit file. The only record is in the bank's internal system and in ChexSystems, which lenders do not use to make credit decisions.
What ChexSystems records and why it matters
When you close a bank account, the bank may report it to ChexSystems, a consumer reporting agency that tracks banking history. ChexSystems records account closures, overdrafts, fraud, and other banking problems. If you close an account in good standing, the record is neutral — it straightforward shows the account is closed. If you closed it because of overdrafts or disputes, that negative information stays in ChexSystems for up to five years.
ChexSystems is used by banks and credit unions when you try to open a new account. A bad ChexSystems record can make it harder to open a new bank account, but it does not affect your credit score. The two systems are completely separate. You can have a perfect credit score and a poor ChexSystems record, or vice versa.
How to close a bank account without complications
To close an account cleanly, first make sure the balance is zero and there are no pending transactions. Set up direct deposit or transfers to move any remaining funds to another account. Then contact your bank — you can usually do this in person, by phone, or online, depending on the bank.
Ask the bank to confirm in writing that the account is closed and that there are no outstanding balances or fees. Keep this confirmation. If the bank later tries to collect a fee or reports a balance to a collection agency, you will have proof that the account was closed with zero balance. This protects you if a dispute arises later.
If you have automatic payments or subscriptions linked to the account, change those before you close it. A payment that bounces after the account is closed can trigger overdraft fees, which the bank may then try to collect.
What happens if you close an account with a negative balance
If you close an account that is overdrawn or has unpaid fees, the bank will try to collect the money. First, they will usually deduct it from another account you have at the same bank if you let them. If you do not have another account or do not authorize the transfer, the bank will send the debt to a collection agency.
Once a collection agency takes over, the debt appears on your credit report as a collection account. This will lower your credit score by 50 to 100 points or more, depending on your current score and the size of the debt. The collection account stays on your report for seven years from the date of first delinquency, even if you pay it later.
If you owe the bank money when you want to close the account, pay it before you close. This is the only way to avoid a collection report.
Frequently Asked Questions
Will closing my bank account show up on my credit report?
No. Bank account closures do not appear on credit reports at all. They only appear in ChexSystems, which is a separate banking history database that credit bureaus do not access. Your credit score will not change because you closed a bank account.
Can closing multiple bank accounts hurt my credit?
No. Closing as many bank accounts as you want will not affect your credit score. Each closure is a banking transaction, not a credit event. The only exception is if you close an account with an unpaid balance, which could lead to a collection report.
What if I close a bank account and the bank later sends me a bill?
If the bank sends a bill after you close the account, it means there was an outstanding balance or fee you did not know about. Pay it when ready to prevent the bank from sending it to a collection agency. If it has already gone to collections, contact the collection agency to negotiate a settlement or payment plan.
Does closing a savings account affect my credit differently than closing a checking account?
No. Savings accounts and checking accounts are both deposit accounts. Neither one appears on your credit report, and closing either one has no effect on your credit score. The rules are the same for both.
If I have a bad ChexSystems record, will it hurt my credit score?
No. ChexSystems and credit bureaus are separate systems. A bad ChexSystems record will make it harder to open a new bank account, but it will not lower your credit score. Your credit score is based only on credit history, not on banking history.