Closing a bank account does not affect your credit score
Bank accounts and credit scores are separate systems. Your bank does not report account closures to the three credit bureaus—Equifax, Experian, and TransUnion—so closing a checking or savings account will not lower your score, raise it, or appear on your credit report at all.
What matters to your credit score is borrowed money: credit cards, loans, mortgages, and lines of credit. A bank account is money you own, not money you owe. The bank knows whether you close it, but that information stays between you and the bank.
That said, closing an account can have indirect financial consequences that are worth understanding before you do it. Those consequences are not credit-related, but they can affect your finances in other ways.
Key Takeaways
- Bank account closures do not appear on your credit report and do not change your credit score in any way.
- Closing an account can create problems if you have automatic payments or direct deposits tied to that account number.
- If you close an account with an outstanding balance or pending transactions, the bank may charge overdraft or closure fees.
- Some banks report closed accounts to ChexSystems, a checking account history system separate from credit bureaus, which can affect your ability to open accounts elsewhere.
- The timing of closure matters only if you have bills or income scheduled to hit that account.
Why bank accounts do not show up on credit reports
Credit bureaus track only credit activity—money you borrowed and how you repaid it. They receive reports from credit card companies, lenders, and other creditors. Banks that offer checking and savings accounts are not creditors; they are custodians of your money. Whether you keep an account open or close it is a transaction between you and the bank, not a credit event.
Your credit score is built from five categories: payment history (35 percent), amounts owed (30 percent), length of credit history (15 percent), credit mix (10 percent), and new credit inquiries (10 percent). A bank account does not fit into any of these. Closing one changes none of them.
This is true even if you close an account because you cannot maintain a minimum balance, because you have overdraft fees, or because you are switching banks. The reason for closure does not matter because the closure itself is not reported to credit bureaus.
What actually happens when you close a bank account
When you close an account, the bank stops accepting deposits and withdrawals on that account number. If you have a balance, the bank sends you a check or transfers the money to another account you specify. If you have pending transactions—a check you wrote that has not cleared, or a bill payment scheduled for next week—those may still process after closure, which can create overdraft fees if the account balance is too low.
The bank may also charge a closure fee if you close the account within a certain period (often 90 days to six months of opening it). This fee comes out of your balance and is not reported to credit bureaus, but it is money you lose.
After closure, the account number is deactivated. Any attempt to deposit money to that number or withdraw from it will fail. If you have automatic payments or direct deposits set up on that account, they will bounce or be rejected.
The real risk: ChexSystems and future account openings
While credit bureaus ignore bank closures, a separate system called ChexSystems does not. ChexSystems is a checking account history database that banks use to decide whether to open new accounts for you. It is not a credit bureau and does not affect your credit score, but it can affect your ability to open a bank account elsewhere.
Banks report account closures to ChexSystems, especially if the account was closed because of overdrafts, fraud, or unpaid fees. If you have multiple closures or a pattern of overdrafts, some banks will deny you a new account or require you to use a second-chance checking account with higher fees.
You can request your ChexSystems report for free once per year at www.chexsystems.com. If there is an error on your report, you can dispute it. But a legitimate closure will stay on your ChexSystems history for five years.
Automatic payments and direct deposits: the real problem
The biggest practical risk when closing a bank account is forgetting to update the account number for bills and paychecks. If your employer is set to deposit your paycheck into an account you just closed, that deposit will fail and you will not receive your pay on schedule. If you have automatic bill payments set up on the old account, those payments will bounce.
Before you close an account, make a list of everything tied to it: payroll direct deposits, automatic bill payments, subscription charges, insurance premiums, and any other recurring transactions. Contact each one and update the account number to your new bank account. This takes time but prevents weeks of missed payments and late fees.
If you miss updating something and a payment bounces, the merchant may charge you a returned-payment fee. Your bank may also charge a fee for the failed transaction. These fees are real money out of your pocket, even though they do not affect your credit score.
How to close a bank account without creating problems
The safest approach is to give yourself at least two weeks before closure. First, move your money out or request a check. Second, go through your bank statements for the past three months and identify every recurring transaction. Third, contact each one—your employer, your utility company, your insurance provider, your subscription services—and update the account information. Fourth, wait a few days to make sure no unexpected charges hit the old account. Finally, call the bank and request closure.
When you call, ask the bank to confirm that all pending transactions have cleared and that no automatic payments are still scheduled. Ask whether there is a closure fee and whether it will be deducted from your balance. Ask the bank to send you written confirmation of the closure date.
If you are closing the account because of poor service or fees, consider whether switching to a different bank account at the same bank might solve the problem instead. Some banks waive fees for accounts that meet certain conditions—direct deposit of paycheck, minimum balance, or a linked savings account. You might avoid closure altogether.
Closing a credit card versus closing a bank account
Closing a credit card does affect your credit score, which is why it is often recommended to keep old credit cards open even if you do not use them. Closing a credit card reduces your available credit, which can raise your credit utilization ratio and lower your score.
Closing a bank account does not have this effect because bank accounts are not part of your credit mix. The two are completely separate systems. You can close as many bank accounts as you want without touching your credit score. The only consequence is the practical one: making sure your money and your bills go to the right place.
Frequently Asked Questions
Will closing a bank account show up on my credit report?
No. Bank account closures are not reported to credit bureaus and do not appear on your credit report. Your credit score will not change.
Can I close a bank account if I have a negative balance?
Most banks will not let you close an account with a negative balance. You must pay the overdraft amount first. Once the balance is zero or positive, you can request closure. If you do not pay the overdraft, the bank may close the account themselves and send the debt to a collection agency, which would appear on your credit report.
How long does it take to close a bank account?
Most closures happen when ready when you call or visit the bank in person. However, it can take three to five business days for pending transactions to clear and for the bank to send you any remaining balance. Do not assume the account is fully closed until you receive written confirmation.
What happens to checks I wrote before closing the account?
Checks you wrote before closure may still clear after the account is closed, which can create overdraft fees if the account balance is too low. Before closing, wait for all outstanding checks to clear. You can ask your bank to hold the account open for a few extra days while you confirm this.
Does closing a bank account affect my ability to get a loan?
Closing a bank account itself does not affect loan decisions. However, if the closure was due to unpaid overdrafts or fraud, and that information appears on your ChexSystems report, some lenders may view it as a sign of financial mismanagement. Most lenders focus on your credit score and credit history, not your bank account history.