How Will Closing a Bank Account Affect Your Credit?

Financial credit is one of those things that just about every adult must-have, but few want to deal with it at all. The financial implications that arise from your credit score and the information that’s contained in your report can tend to be pretty serious.

With the right credit score and decent info on your report, you can have a much, much easier time with things like financing large purchases, opening new accounts, and many other things that are tough to do with cash (but become more and more necessary as we move into independent adulthood).

Credit Score

While it’s clear that your credit score is an essential part of your financial identity, not every individual is apparent as to how to go about protecting their credit score in the right way. Making sure that your credit score stays healthy and that the report stays clean is one of the most important things that you could do for yourself as an adult.

How Will Closing a Bank Account Affect Your Credit?

When you have good credit, many purchases are just easier to make in general, but sometimes it can start to seem like any little thing is a reason for credit reporting agencies to knock those precious points off your score.


While the Free Credit Reporting Act (also known as the FCRA) has made it a lot easier to obtain that vital information and understand what your credit report actually looks like, doing so is rarely as truly “free” as it sounds like it should be. If you don’t have to pay for the information that’s on your credit report, you might have to deal with a few points being taken from your score, just for the inquiry alone.

Opening a new account can trigger a slight drop in your credit score, and so can things like late payments or defaulting on a loan. There are a lot of things that can affect your credit score, and it’s pretty easy to start being a little worried that your actions are going to have negative consequences financially.

Will Credit Score be Affected?

It’s essential to make sure that you’re not doing anything to hurt your credit score, and there are a lot of seemingly innocent acts that might wind up hurting the way your credit looks. Closing a bank account might even seem like something that would damage your credit score, but you can rest assured that it absolutely will not.

Credit scores are put in place so that a lending institution can assess your track record when it comes to repaying your debts. A good credit score implies that you’re dependable and can settle your accounts promptly. Your bank account, however, offers zero indication of this, and the reasons why don’t require a directory of financial service providers to be made clear.

Your bank account is an asset that you own, free and clear. Since you’re not borrowing anything from anyone to open or close a checking account, it doesn’t reflect how well you repay your debts—as such, closing a bank account won’t affect your credit score in the slightest.