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Does Closing a Bank Account Hurt Your Credit Score


Your credit score is a number calculated from the information in your credit report. Your credit report will contain information about your loans, other credit obligations, and negative actions in public record (bankruptcy, collections, court judgments). It actually contains absolutely no banking information so closing, or opening in most cases, a bank account does not hurt or help your score.

In some cases, your credit score might be hurt if you open a bank account. The most common case is if you open a checking account with overdraft protection. Since the bank may be giving you a short term, the overdraft protection, they may do a hard inquiry to see how credit worthy you are. If you are concerned, always ask the bank if they pull your credit and whether it’s considered a hard inquiry or soft inquiry.

So does that mean my recent rash of bank account closings will have no effect? Not necessarily. As you may remember in my post about checking your specialty reports [3], there is a ChexSystems report that collects information about your banking activity. Banks may see my activity, frown upon it, and deny me a bank account in the future. Is that enough to stop me from simplifying my finances? Not at all.