Does Closing a Bank Account Hurt Your Credit Score?

When people ask if closing a bank account hurts their credit, they're often thinking about their overall financial picture. It's important to distinguish between different types of financial accounts. Your checking and savings accounts are considered deposit accounts. Banks use them to hold your money, facilitate transactions, and offer services. However, these accounts are generally not reported to the three major credit bureaus: Equifax, Experian, and TransUnion. This means the act of opening, maintaining, or closing a standard bank account typically has no direct bearing on your credit report or your credit score.

The nuance comes into play when a bank account is linked to a credit product, most commonly a credit card. If you decide to close your bank account and, as a result, also close a credit card issued by that same bank, then there can be an indirect impact on your credit score. The closure of a credit card can affect your credit utilization ratio, which is the amount of credit you're using compared to your total available credit. A higher utilization ratio can negatively impact your score. For example, if closing a card reduces your total available credit, your utilization ratio might increase, even if your spending habits haven't changed. This is why understanding the [credit utilization 30 rule explained](/credit-utilization-30-rule-explained) is so important for maintaining a good score.

Your credit score is a three-digit number that lenders use to assess your creditworthiness. It's primarily influenced by your history of managing credit. The key factors that determine your credit score include payment history, amounts owed (credit utilization), length of credit history, credit mix, and new credit. Bank accounts, by themselves, do not fall into these categories. Therefore, focusing on responsible credit card usage, paying bills on time, and managing debt are far more critical for your credit health than the number of bank accounts you hold or close. If you're looking to improve your score, consider strategies outlined in articles like [how to improve credit score fast](/how-to-improve-credit-score-fast).

While closing a bank account is usually benign for your credit, closing a credit card requires more thought. If a credit card has a high annual fee that you no longer feel is justified, or if it's a card you never use and want to simplify your finances, closing it might be an option. However, be aware of the potential impact on your credit utilization and credit history length. Sometimes, it's better to keep an older, unused card open with a zero balance to benefit your credit history. For more on this, explore [what happens to credit when you close a card](/what-happens-to-credit-when-you-close-a-card).

FairScoreGuide is committed to providing objective and helpful information. This article is for educational purposes and does not constitute financial advice. While we strive for accuracy, credit scoring models and financial products can change. We do not guarantee any specific credit score outcomes. Our editorial team independently researches and writes content, and while we may partner with financial institutions or use affiliate links, these relationships do not influence our editorial decisions or recommendations. We aim to empower consumers with knowledge to make informed financial decisions.