Does Closing a Financial savings or Checking Account Harm your Credit score Rating?

Ever marvel what kind of accounts do and don’t affect your credit score rating and historical past?


A reader writes in with a great query on closing a checking account and I believed I’d share the reply, to offer some perception:

“G.E., I’ve an older checking account that I need to shut. Will closing a checking account damage my credit score rating or credit score historical past in any manner? Are there every other doable negatives to doing this?”

The brief reply is NO (so is the lengthy… however let me clarify why…).

Credit score stories and credit score scores are on the market as a way for lenders to find out in case you are credit score worthy primarily based in your previous and present borrowing and fee historical past.

Financial savings and checking accounts, alternatively, are each belongings that you just personal. As such, they don’t have any affect in your credit score (what you borrow). So that they received’t present up in your credit score stories and your credit score rating won’t be negatively impacted by shutting them down.


The one time your checking account could are available in to play in a lending scenario is that if a lender asks you to show your belongings. I’ve had this occur when taking out a mortgage. Typically lenders prefer to see that you just even have liquid money someplace that you would be able to faucet, if wanted, to pay them again. However closing a financial savings or checking an account would nonetheless don’t have any affect in your credit score rating, in any respect.

I’ve heard of banks flagging clients for abuse of closing and opening checking accounts to attain free promotions. In order that is perhaps your solely draw back. Who would do such a factor? 😉


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