Opening a checking account does not affect your credit score at all
When you open a checking account, the bank does not report it to the credit bureaus—Equifax, Experian, or TransUnion. A checking account is a deposit account, not a credit account. Your credit score measures how you borrow and repay money. A checking account measures how you manage cash you already have.
The bank will pull your credit report when you explore, but that pull does not change your score. It is a soft inquiry—the kind that shows up only to you, not to other lenders. Hard inquiries, which do affect your score slightly, happen only when you explore for credit: a loan, a credit card, or a line of credit.
Some banks check ChexSystems instead of your credit report. ChexSystems is a separate system that tracks checking account history—overdrafts, closed accounts, unpaid fees. It has nothing to do with your credit score and does not report to the credit bureaus.
Closing a checking account also does not directly affect your credit score
Closing a checking account does not report to the credit bureaus either. The account straightforward closes. Your credit score does not move because of it.
However, the way you close the account can create problems that do affect your score. If you close an account while it still has a negative balance—money you owe the bank—that debt can be reported to the credit bureaus and sent to a collection agency. A collection account will damage your score. If you close an account and leave it overdrawn, the bank may charge off the debt after 60 to 90 days, and that charge-off appears on your credit report.
The safer approach: bring your balance to zero or positive before you close. If you have an overdraft, pay it off first. Once the account is settled, closing it has no effect on your score.
Key Takeaways
- Opening a checking account does not report to credit bureaus and does not change your credit score, even though the bank may pull your credit report to review your history.
- Closing a checking account also does not directly affect your credit score unless you leave the account with a negative balance or unpaid fees.
- Unpaid overdrafts or fees left on a closed account can be reported as debt and sent to collections, which will damage your score.
- ChexSystems, which banks use to check your checking account history, is separate from your credit report and does not affect your credit score.
What happens if you close an account with money still owed
If you close a checking account while you owe the bank money—whether from overdrafts, monthly fees, or other charges—the bank treats it as a debt. The account does not straightforward disappear. The bank will try to collect the money, usually by sending you a notice and attempting to debit another account you have with them.
If you do not pay within 60 to 90 days, the bank may charge off the account. A charge-off means the bank has written off the debt as uncollectible and may sell it to a third-party collection agency. That collection account will appear on your credit report and will lower your score significantly—often by 50 to 100 points or more, depending on your starting score.
The debt can remain on your credit report for seven years from the date of the charge-off, even if you pay it later. Paying a collection account stops the damage from getting worse, but it does not remove the account from your report when ready.
Why banks pull your credit when you open a checking account
Banks pull your credit report to assess risk, but not the risk of you borrowing money. They want to see your history with other banks and financial institutions. They are looking for patterns: Do you overdraft frequently? Do you have unpaid debts? Have you had accounts sent to collections?
This pull is a soft inquiry. It does not lower your score and does not appear to other lenders. If you explore for multiple checking accounts within a short time, each pull is still soft, so the cumulative effect on your score is zero.
Some banks also use ChexSystems, which is a database of checking account behavior maintained by a company called Chex Systems. If you have a history of overdrafts, bounced checks, or unpaid fees, ChexSystems will flag that. A bank may deny your process based on ChexSystems, but that denial does not affect your credit score either.
The difference between a soft inquiry and a hard inquiry
A soft inquiry happens when a bank checks your credit to review your history before opening a deposit account, or when you check your own credit. Soft inquiries do not lower your score and do not show to other lenders.
A hard inquiry happens when you explore for credit—a credit card, a personal loan, a mortgage, or a car loan. Hard inquiries do appear on your credit report and are visible to other lenders. Each hard inquiry can lower your score by a few points, usually 5 to 10 points. Multiple hard inquiries within a short time (usually 14 to 45 days, depending on the scoring model) may count as a single inquiry if they are for the same type of credit.
Opening a checking account triggers only a soft inquiry, so there is no score impact. explore for a credit card at the same bank, by contrast, would trigger a hard inquiry and would lower your score slightly.
What to do before closing a checking account
Before you close a checking account, take these steps to protect your credit:
- Check your balance. Make sure it is zero or positive. If it is negative, deposit money to bring it to zero.
- Look for pending transactions. Some charges may not have cleared yet. Wait a few days or log in to your online banking to see what is still outstanding.
- Check for recurring charges. If you have automatic payments set up—subscriptions, insurance, loan payments—redirect them to your new account before you close the old one. A missed payment because the account closed can damage your score.
- Request written confirmation. Once the account is closed and settled, ask the bank for written confirmation that the account is closed with a zero balance. Keep this for your records.
- Monitor your credit report. Check your credit report 30 to 60 days after closing to make sure nothing unexpected appears. You can get a free report once a year from AnnualCreditReport.com.
Frequently Asked Questions
Will opening multiple checking accounts hurt my credit score?
No. Each account opening triggers only a soft inquiry, which does not affect your score. You can open as many checking accounts as you want without any credit impact. However, opening many accounts in a short time may raise red flags with banks or ChexSystems, and they may deny future applications.
Does closing a checking account show up on my credit report?
No, closing a checking account does not appear on your credit report at all. The account straightforward closes. Only if you leave the account with unpaid debt will that debt be reported to the credit bureaus.
Can a bank report a closed checking account to the credit bureaus?
A bank will not report a closed checking account to the credit bureaus unless there is an unpaid balance. If you close the account with money owed, the bank may report that debt as a collection account, which will appear on your credit report and lower your score.
How long does a checking account closure stay on ChexSystems?
Closed accounts typically remain on ChexSystems for five years. If the account was closed due to overdrafts or unpaid fees, it may stay longer. ChexSystems does not affect your credit score, but it can affect whether banks will open new accounts for you.
If I pay off an overdraft after closing the account, will my credit score recover?
Paying off the overdraft stops additional damage, but it does not remove the collection account from your credit report when ready. The account will remain on your report for seven years from the charge-off date. However, the impact on your score lessens over time, especially if you build positive credit history with other accounts.