Does Closing a Checking Account Hurt Your Credit?

Closing a checking account will not directly hurt your credit score in most cases, but there are situations where the process of doing so can lead to indirect credit damage.

Understanding the difference between your credit report and your banking history can be key to ensuring that closing an account does not cause unintended financial consequences. In this article, we look at how closing a checking account could impact your credit and the safest way to close one.

Key points

• Closing a checking account in good standing has no direct impact on your credit score, as banks and credit unions do not report account information to the major credit bureaus.
• There are situations where closing a checking account can indirectly damage your credit, including closing with an unpaid negative balance, missing a loan or credit card payment during the switch, or a check bouncing after closure.
• Your banking history is tracked separately by specialty reporting companies such as ChexSystems and Early Warning Services, and a negative record with either can affect your ability to open a new bank account for up to 5 years.

Does closing a checking account affect your credit score?

Closing a checking account does not directly affect your credit score. According to the CFPB, the three major consumer reporting companies, Experian, Equifax, and TransUnion, typically do not include information about your checking account or check-writing history in traditional credit reports. ^[1] Banks and credit unions do not report bank account information, including account closures, to the credit bureaus, meaning that opening or closing a bank account will not appear on your credit report. ^[2]

There are, however, specific situations in which closing a checking account can indirectly cause credit damage, which we cover below.

Do checking account closures show in credit reports?

Checking account closures do not show up on your credit report. Banks and credit unions do not report bank account information, including account closures, to the credit bureaus, so opening or closing a bank account will not appear on your credit report. ^[2]

This comes down to what credit reports are actually designed to track. Your credit report is a record of how you manage debt payments, covering things like credit cards, loans and mortgages. A checking account is a deposit account that holds your own money rather than borrowed funds, so there is no debt activity for the bureaus to report on. ^[2]

When closing a checking account can hurt your credit

While closing a checking account in good standing has no direct impact on your credit, there are situations where the process of closing one can lead to indirect credit damage.

You close with a negative balance

If you close a checking account while it carries a negative balance and that balance goes unpaid, the bank can sell the debt to a collection agency. ^[1] That collection agency may then report the debt to the major credit bureaus, causing a collection account to appear on your credit report and your score to drop. ^{[1] [2]}

You miss a loan or credit payment during the switch

If you have automatic payments set up for loans or credit cards from your old account, it is important to redirect them before closing it. Automatic payments cannot be processed from a closed account, and any attempts will be declined. If you do not update your payment information in time and miss a payment by 30 days or more, it can have a significant negative impact on your credit score. ^[2]

A check bounces after closure

Bounced checks are not reported directly to the three major credit bureaus. However, if a check bounces and the resulting debt goes unpaid, the account may be sent to collections, which can then appear on your credit report and affect your score. ^[3]

What is ChexSystems and is it the same as a credit report?

While checking accounts do not appear on your credit report, that does not mean your banking history goes entirely untracked. Specialty checking account reporting companies collect and report information about checking accounts you have had in the past, and the two main companies that do this are ChexSystems and Early Warning Services. Banks and credit unions often use reports from these companies to help determine whether to enable you to open a checking account and which type of account to offer you. ^[1]

Negative information that can appear on your ChexSystems report includes involuntary account closures, bounced checks and overdrafts, unpaid negative balances, and suspected fraud or identity theft. Under federal law, you are entitled to a free copy of your ChexSystems report every 12 months, and if you find any inaccurate information, you have the right to dispute it. ^[4]

How to safely close your bank account

Closing a checking account may be straightforward, but taking the right steps beforehand can help you avoid unnecessary fees, missed payments or any impact on your banking history.

• Open a new account first: Before closing your existing account, make sure you have a new checking account ready to go. This gives you somewhere to redirect payments and deposits before anything is switched over. ^[2]
• Review and update all automatic payments: Go through your subscriptions, bills, and any loan or credit card payments set to come out of the account, and update them to your new account. Automatic payments cannot be processed from a closed account, and a missed payment of 30 days or more can negatively impact your credit score. ^[2]
• Wait for all pending transactions to clear: Before closing, make sure there are no outstanding checks or pending transactions still to be processed from the account. Causing these to bounce may result in fees and could affect your ability to open a new checking account in the future. ^[5]
• Settle any outstanding balance: If your account is overdrawn or carries a negative balance, your bank may require you to clear this before allowing you to close the account. ^[5]
• Contact your bank to close the account: You can do this by phone or in person. Be aware that some banks charge a fee if you close an account shortly after opening it, so it is worth checking your terms before proceeding. ^[5]
• Get written confirmation: Once the account is closed, ask the bank for written confirmation and keep it for your records. ^[2]

Frequently Asked Questions

Does closing a joint checking account affect both owners?

Closing a joint checking account does not directly affect either owner's credit score, as checking accounts are not part of your credit history. ^[2] However, if the account is closed with an unpaid negative balance, both owners could be affected through ChexSystems, as both parties are responsible for the account. ^[6]

My bank closed my account. Will that hurt my credit?

If your bank closes your account, the closure itself will not appear on your credit report. However, if the account was closed due to an unpaid negative balance, the bank would typically report that involuntary closure to a checking account reporting company such as ChexSystems, which could affect your ability to open a new account elsewhere. If the unpaid balance is passed to a debt collector, that collection account could then appear on your credit report and impact your score. ^[1]

How long does a negative ChexSystems record stay on file?

Negative information generally remains on ChexSystems and Early Warning Services consumer reports for five years. During that time, it could affect your ability to open a new checking or savings account with another bank or credit union. ^[7]

Sources

1. Consumer Financial Protection Bureau. "Will it hurt my credit if my bank or credit union closed my checking account?" https://www.consumerfinance.gov/ask-cfpb/will-it-hurt-my-credit-if-my-bank-or-credit-union-closed-my-checking-account-en-1819/. Accessed May 12, 2026.
2. Experian. "Does Closing a Bank Account Affect Your Credit?" https://www.experian.com/blogs/ask-experian/does-closing-a-bank-account-affect-your-credit/. Accessed May 12, 2026.
3. Experian. "How to Recover From a Bounced Check." https://www.experian.com/blogs/ask-experian/how-to-recover-from-bounced-check/. Accessed May 12, 2026.
4. Experian. "How to Clean Up a ChexSystems Report." https://www.experian.com/blogs/ask-experian/how-to-clean-up-a-chexsystems-report/. Accessed June 5, 2026.
5. Consumer Financial Protection Bureau. "Can I close my account whenever I want?" https://www.consumerfinance.gov/ask-cfpb/can-i-close-my-account-whenever-i-want-en-957/. Accessed May 12, 2026.
6. Consumer Financial Protection Bureau. "Why Was I Denied a Checking Account?" https://www.consumerfinance.gov/ask-cfpb/why-was-i-denied-a-checking-account-en-1113/. Accessed June 5, 2026.
7. Office of the Comptroller of the Currency. "How long does negative information stay on ChexSystems and EWS reports?" https://www.helpwithmybank.gov/help-topics/debt-credit-scores/credit-scores-reports/credit-reports/credit-report-chex.html. Accessed May 12, 2026.

About the author

Becca has over 10 years of experience as a content writer, working across various industries including finance, digital marketing, education, travel, and technology. Her work has been featured in publications including Forbes, Business Insider, AOL, Yahoo, GOBankingRates, and more.