Closing a checking account does not directly damage your credit score
Closing a checking account by itself will not lower your credit score. Credit bureaus—Equifax, Experian, and TransUnion—do not track checking accounts. They track credit accounts: credit cards, loans, mortgages, lines of credit. A checking account is a deposit account, not a credit account, so the bureaus never see it.
What matters to your credit score is what happens to any debt you owe when you close the account. If you close a checking account that has no debt attached to it, your score stays the same. If you close an account and leave an unpaid balance, or if closing the account causes you to miss a payment on a credit card or loan, that is what damages your score—not the closing itself.
Key Takeaways
- Closing a checking account does not appear on your credit report because checking accounts are not credit accounts.
- Your credit score can be affected only if closing the account causes you to miss a payment on a credit card, loan, or other debt.
- If you have automatic payments set up from the checking account you are closing, you must move those payments to another account before closing to avoid missed payments.
- Closing a savings account or money market account also does not affect your credit score directly.
When closing a checking account can hurt your credit indirectly
The damage happens when closing the account disrupts your ability to pay bills on time. If you have automatic payments—a credit card payment, a loan payment, a utility bill—set up to come from that checking account, and you close it without setting up those payments elsewhere, the payments will fail. A failed payment shows up as a late payment on your credit report.
A single late payment can lower your score by 50 to 100 points, depending on how late it is and your current score. The damage is worse if the account goes to collections. This is not because you closed the checking account; it is because you missed a payment on a credit account.
The same risk applies if you close a checking account and forget to update your payment method with a creditor. For example, if your credit card company has your checking account number on file and you close that account, the next payment attempt will fail unless you have updated your payment method with them first.
How to close a checking account without affecting your credit
Before you close the account, make a list of every automatic payment or recurring charge that comes from it. This includes credit card payments, loan payments, insurance premiums, subscription services, and utility bills. Contact each company and update your payment method to a different checking account, a savings account, or a credit card.
Wait at least one billing cycle after you have changed the payment method to confirm that the new payment went through successfully. Then close the old checking account. Some banks require you to bring the account balance to zero before closing; others will close it with a small balance and mail you a check.
If you are closing the account because you are switching banks, ask your new bank about their account transfer service. Many banks can move your direct deposits and automatic payments for you, which reduces the risk of missing a payment during the switch.
What does show up on your credit report when you close accounts
Closing a credit card can affect your score, but closing a checking account cannot. When you close a credit card, the card issuer reports the closure to the credit bureaus. This can lower your score slightly because it reduces your total available credit, which affects your credit utilization ratio. If you had a $5,000 limit on that card and you were using $1,000 of it, closing the card removes the $4,000 of unused credit from your profile.
Closing a savings account or money market account has the same effect as closing a checking account: no impact on your credit score. These are all deposit accounts, not credit accounts. The credit bureaus do not track them.
Closing a loan—a personal loan, auto loan, or mortgage—does show up on your credit report. Paying off a loan and closing it is reported as "account closed by consumer" and does not hurt your score. In fact, paying off a loan on time can slightly improve your score because it shows you completed a credit obligation successfully.
The difference between closing an account and delinquency
A closed account and a delinquent account are two different things on your credit report. A closed account straightforward means the account is no longer active. A delinquent account means you owe money and have not paid it. Delinquency damages your score; closure does not.
If you close a checking account and later a creditor tries to collect a debt from you, the delinquency is what hurts your score, not the closed checking account. The two events may happen around the same time, but they are separate.
What happens to pending transactions when you close a checking account
If you close a checking account while a check or automatic payment is still pending, the transaction will bounce. The merchant or creditor will see a non-sufficient funds (NSF) error. Some creditors will retry the payment a few days later; others will charge you an NSF fee and report the failed payment.
To avoid this, do not close the account until you are certain all pending transactions have cleared. Check your account for any checks you have written that have not yet been cashed, and wait for them to clear before closing. Ask your bank how long they keep the account open after closure to process outstanding checks—many banks hold accounts open for 30 to 90 days for this reason.
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. Credit bureaus only track credit accounts like credit cards, loans, and lines of credit. Closing a checking account is invisible to your credit score.
Can I hurt my credit by closing too many bank accounts?
No. Closing multiple checking or savings accounts will not damage your credit. However, if closing an account causes you to miss a payment on a credit card or loan, that missed payment will hurt your score. The account closure itself is not the problem.
What if I close my checking account and a creditor tries to charge a payment to it?
The payment will fail and you will likely be charged an NSF fee by your bank. The creditor may also charge a fee and retry the payment. To prevent this, update your payment method with all creditors before you close the account.
Does closing a savings account hurt my credit?
No. Savings accounts, like checking accounts, are deposit accounts and do not appear on your credit report. Closing a savings account has no effect on your credit score.
If I pay off a loan and close that account, will my credit score drop?
Paying off a loan and closing it may cause a small temporary dip in your score because you have removed an active credit account from your profile. However, this is usually minor and your score typically recovers within a few months. The positive history of on-time payments remains on your report.