Closing a checking account does not hurt your credit score
Closing a checking account has no direct effect on your credit. Banks do not report checking account activity to the three credit bureaus — Equifax, Experian, and TransUnion — so opening or closing one does not change your credit score at all.
This is different from credit products like credit cards or loans, which banks do report. A checking account is straightforward a place to hold and move money. Your credit score only tracks how you borrow and repay money, not how you manage deposits.
That said, closing a checking account can create problems that indirectly affect your credit if you are not careful. The most common one is bouncing checks or letting automatic payments fail because you forgot to switch accounts. Those failures can damage your credit if they lead to unpaid bills or collection accounts.
Key Takeaways
- Banks do not report checking accounts to credit bureaus, so closing one will not change your credit score.
- Missed payments on bills set to auto-pay from your old account can hurt your credit if they go unpaid long enough.
- ChexSystems, a separate banking database, may record a closed account if you left it with a negative balance or unpaid fees.
- The safest approach is to move auto-pay bills to your new account before closing the old one, then wait a month to confirm no stray charges appear.
How a closed account can indirectly damage your credit
The risk comes from what happens after you close the account, not from the closure itself. If you have automatic bill payments — utilities, insurance, loan payments, credit card minimums — set to withdraw from the old account, those payments will fail once the account is closed.
When a payment fails, the company you owe money to will usually try again a few days later. If it fails a second time, they may charge you a late fee and report the missed payment to the credit bureaus. A single missed payment can lower your score by 50 to 100 points depending on your current score and payment history.
The damage gets worse if the missed payment goes unpaid for 30 days or more. At that point, the creditor may send your account to a collection agency, which is a serious mark on your credit that can stay for seven years.
What to do before closing to protect your credit
The solution is straightforward: move all automatic payments to your new account before you close the old one. Log into each company's website or call them directly — utilities, insurance, loan servicers, credit card issuers, subscription services — and update the bank account information.
After you have updated everything, wait at least one full billing cycle (usually 30 days) before closing the old account. This gives you time to catch any payments you may have missed. If a charge appears on the old account during this waiting period, you will know you forgot to update something.
Once you are confident all payments have moved, you can close the account. Contact your bank by phone, in person, or through their website. Ask them to confirm the account is closed and whether there are any remaining fees or holds on the account.
ChexSystems: a separate banking record that is not your credit score
ChexSystems is a database that banks use to check your history with other banks. It is not a credit bureau and does not affect your credit score, but it can affect whether a bank will let you open a new account.
Banks report negative events to ChexSystems: accounts closed due to overdrafts, unpaid fees, fraud, or repeated bounced checks. If your closed account shows up in ChexSystems as a problem account, some banks may deny you when you try to open a new checking account elsewhere.
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 directly with ChexSystems.
The difference between checking accounts and credit accounts
Credit bureaus only track credit — money you borrow and repay. This includes credit cards, personal loans, auto loans, mortgages, and student loans. They do not track debit accounts, savings accounts, or checking accounts because those are not credit products.
When you use a credit card, the card issuer reports your balance, payment history, and credit limit to the bureaus. When you close a credit card account, that can hurt your credit because it reduces your available credit and changes your credit history. But a checking account is never reported to begin with, so closing it has no credit impact.
The only way a checking account affects your credit is indirectly — through missed payments on bills that were supposed to come out of that account.
What happens to your money when you close an account
Any money still in the account is yours. You can withdraw it before closing, transfer it to another account, or ask the bank to send you a check. The bank cannot keep your money just because you are closing the account.
If the account has a negative balance — meaning you owe the bank money — you will need to pay that before closing. The bank will not close an account with an outstanding balance.
Frequently Asked Questions
Can a bank report a closed checking account to credit bureaus?
No. Banks do not report checking accounts to credit bureaus under any circumstances. Checking accounts are not credit products, so they are not part of your credit file. The only way a closed account affects your credit is if missed payments on bills go unpaid long enough to be reported as delinquent.
Will closing my checking account show up on my credit report?
No. Your credit report only shows credit accounts — credit cards, loans, and lines of credit. Checking and savings accounts never appear on your credit report, whether they are open or closed.
What if I close my account and a payment bounces?
Contact the company you owe money to when ready and explain what happened. Many companies will waive a single late fee if you pay within a few days and update your payment method. The sooner you pay, the less likely they are to report it to the credit bureaus.
Does closing a checking account affect my ability to get a loan?
Not directly. Lenders look at your credit score and payment history, not your checking account status. However, if closing the account causes you to miss payments on other bills, those missed payments will show up on your credit and hurt your chances of loan approval.
How long should I keep an old checking account open after switching banks?
Keep it open for at least 30 to 60 days after moving all automatic payments. This gives you time to catch any stray charges or payments you forgot to update. Once you are sure everything has moved, you can close it safely.