Does Closing a Checking Account Affect Credit Score?
Not directly, but you may see indirect effects
+2 more
While closing a checking account may not have a direct impact on your credit score, it can create ripple effects for your credit and banking options. This guide breaks down direct and indirect impacts, common mistakes and safe closure steps.
Closing a checking account does not report directly to credit bureaus, but errors can create indirect score drops.
Jump to insightSpecialty agencies like ChexSystems may prevent you from opening new accounts for up to five years.
Jump to insightKeep an eye on your old account even after you close it — autopay transactions can still go through.
Jump to insightClosing a checking account: Does it affect your credit score?
Checking and savings accounts aren’t reported to the credit bureaus, so closing one doesn’t directly impact your score. But there may be indirect consequences.
The biggest risk when closing your checking account is ensuring your bank has cleared all transactions and redirecting any autopayments to a new payment method. To cover transactions you forgot, leave your checking account open with some money in it.
Wait until all transactions have cleared before fully closing the account and withdrawing the remaining money.
Direct deposit, joint checking and business accounts
If you have direct deposit, be sure to move your direct deposit payments to the new account before closing the old one. Otherwise, you may have difficulty receiving your payroll on time, leading to late payments, which could be reported to credit agencies and affect your credit score.
If you have a joint checking account, coordinate with the other account owner. It isn’t necessary to get permission from the co-owner to close the account, but communication is a good idea since there may be transactions you are unaware of.
Business checking accounts work similarly to personal accounts, but any negative credit marks will appear on your business credit report, rather than your personal one.
| Account type | Direct credit score impact | Indirect risks | Key considerations |
|---|---|---|---|
| Individual | None | Collections, missed payments | Ensure all transactions clear |
| Joint | None | Both parties liable for negative balance | Communicate closure with co-owner |
| Business | None | Business credit affected by unpaid debts | Check for business credit reporting |
How closing a checking account impacts credit score and banking access
Closing a checking account doesn’t directly impact your credit score the way closing a credit card would. If the account is in good standing, meaning it has no negative balance, you can close it and withdraw the funds. Deposit accounts, such as checking and savings, are not reported to the credit bureaus, so closing them will not affect your score.
Rod Griffin, senior director of consumer education and advocacy at Experian, explained that if you don’t pay off any negative balances from your checking account, your bank could send that debt to a collection agency — which may then report it to the credit bureaus.
Keep in mind your bank will report your negative balance to ChexSystems. Negative marks on this system will prevent you from opening an account at another bank.
“Additionally, if a consumer closes the account and forgets to switch over any recurring payments to a new account or payment method,” Griffin said, “those payments can’t be deducted from the account and could result in a missed payment. That missed payment could then be reported and impact their credit score significantly.”
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It’s also possible for your bank to process a bill after the account has closed, putting the account into the negative. If you aren’t paying close attention, you may accidentally let this balance go unpaid, resulting in an unpaid debt reported to a collection agency.
Any reported unpaid balances can be a mark against your credit and can remain for up to seven years, making it harder to qualify for loans, credit cards and favorable interest rates. And it could take some time to resolve or fix your credit score.
How to close a checking account safely without hurting your credit
Switching checking accounts isn’t easy, but it’s possible. You’ll need to open the new account, move over all your transactions and then close the old account. Be sure to keep an eye on the old account, even after you close it, to make sure that the balance doesn’t go into the negative.
1. Open a new account
The first step to closing a checking account is to open a new account. You’ll need to move your direct deposit and any recurring transactions over to the new account before closing the old one.
2. Move direct deposit to new account
Once the new account is open, notify your employer and move your direct deposit to your new account. Confirm that everything is moved over correctly before continuing the process.
You’ll also want to keep a close eye on the balances of both checking accounts during the transition. You may need to move some money from the new account to the old one to ensure it doesn’t go into the negative.
3. Reset automatic payments to new account
After you set up your new account and ensure money is available, start moving any recurring automatic payments from the old account to the new one. Contact each biller and give them your new payment details.
4. Wait for any pending transactions to clear
If you have any pending transactions, those will need to clear before you close the account. Make sure you have enough money in the old account to cover any transactions that may come through.
If you write paper checks, guarantee your bank has paid all outstanding checks.
5. Close the account
Once you’ve moved all recurring payments and cleared all pending transactions, you can close the account and withdraw any remaining funds.
6. Watch for any further activity
Keep an eye out for any further transactions that may hit the account. You may have autopayments you forgot about or annual subscriptions that weren't moved. Even if the account is closed, these transactions can still come through, putting your closed account into the negative.
Don’t ignore letters or notifications from the bank with the closed account. They may be trying to contact you regarding a negative balance. If you don’t cover a negative balance, your bank may report it to ChexSystems and send it to collections, which will impact your credit score.
Handling ChexSystems after account closure
ChexSystems allows banks to notify other banks if a consumer was irresponsible with their deposit accounts. If you leave an unpaid negative balance with one bank, other banks will be able to see this on your ChexSystems report. Information stays on the ChexSystems for up to five years.
You can check your ChexSystems report by filing a request on the ChexSystems website. If you find incorrect information on your report, you can file a dispute with the ChexSystems company. If the negative mark is accurate and you want to resolve it, contact the bank that reported the negative mark.
FAQ
What is ChexSystems and how does it affect me after I close a checking account?
ChexSystems is a reporting agency banks use to track behavior with deposit accounts, such as unpaid negative balances and bounced checks. It’s used to determine consumer risk and can negatively affect you if you have an unpaid negative balance on a checking account.
If I close a joint checking account, who is responsible for unpaid fees or overdrafts?
Both parties are responsible for any unpaid fees or overdrafts. Co-owners of a joint checking account are both fully responsible for the account.
How does closing a business checking account affect my business or personal credit?
Closing a business checking account could affect your business credit if you have an unpaid negative balance that's sent to collections.
What happens if I close several checking accounts at once?
Closing several checking accounts at once could be complicated, as you’ll need to keep track of several accounts and all pending and automatic transactions that occur on each account.
But closing several accounts at once will not affect your credit, unless collections agencies receive a negative balance report.
What’s the difference between closing a checking account and a credit card for my credit score?
Unlike credit cards, checking accounts aren’t reported to the credit bureau or factored into your credit score. Closing a checking account won't directly impact your credit score.
Credit cards, however, are reported to the credit bureau and determine factors such as length of credit history and your credit utilization ratio. These factors do impact your credit score, so closing the account would have an impact.
Article sources
ConsumerAffairs writers primarily rely on government data, industry experts and original research from other reputable publications to inform their work. Specific sources for this article include:
- Consumer Financial Protection Bureau, “Will it hurt my credit if my bank or credit union closed my checking account?” Accessed Dec. 9, 2025.
- Consumer Financial Protection Bureau, “A joint checking account owner took all the money out and then closed the account without my agreement. Can they do that?” Accessed Dec. 9, 2025.
- HelpWithMyBank.gov, “I closed my checking account, but the bank continued to accept the recurring charges from my insurance company. Why doesn't the bank reject these charges?” Accessed Dec. 9, 2025.
- Midland States Bank, “Does Closing a Checking Account Affect Credit Score?” Accessed Dec. 9, 2025.
