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Does opening a checking or savings account affect your credit score?
Credit scores are notoriously hard to understand. They're calculated using complex algorithms that weigh lots of information found in your credit reports.
So when you open a checking or savings account, does that activity get reported to the credit bureaus? And could it hurt your score the way applying for credit cards or loans can? Fortunately, no. Here’s why.
Does opening a checking account affect your credit score?
Opening a checking account does not have any effect on your credit scores. Why? Because checking account information is not reported to the credit bureaus, so it isn't considered when your scores are calculated.
Additionally, banks don't do a "hard pull" on your credit when determining if you qualify for a checking or savings account. Instead, they might conduct a soft credit pull or review your consumer banking reports (more on that later). But neither of these actions hurts your credit scores.
Mismanaging your checking account, however, can have an indirect impact on your credit. For example, if you overdraw your account and then close it, the overdraft can turn into collections debt that's reported on your credit reports and hurts your scores.
Does opening a savings account affect your credit scores?
Like checking accounts, savings accounts do not have a direct impact on your credit scores. Banks don't pull your credit reports when you apply for savings accounts and they don't report account openings to the credit bureaus.
Read more: 10 tips to improve your credit score in 2024
How opening a checking or savings account affects other consumer reports
Checking and savings accounts don't impact your credit scores, but they can affect you in another way: through your banking reports.
A banking report is a record of your use of bank accounts. When you apply for a new bank account, the financial institution is likely to pull your banking reports from ChexSystems or Early Warning Services (EWS) to determine if you qualify.
Still, opening a new bank account does not result in a negative mark on your reports. Here are some activities that can:
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Non-sufficient funds transactions
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Accounts closed with unpaid fees
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Involuntarily closed accounts
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Bounced checks
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Balances sent to collections
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Suspected fraud activity
Read more:
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What is ChexSystems, and how do you find out if you're listed?
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What is Early Warning Services, and what's in your EWS report?
Situations when your bank account can impact your credit
After you open a checking or savings account, there's a chance your account activity will impact your credit indirectly. Here's what could happen:
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Collection debt: Unpaid fees and negative balances on your bank accounts can turn into collection debt, which hurts your credit scores. These problems often come up when someone switches from one bank to another but doesn't update their autopay information.
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Loan approval: Having a bank account often makes it easier to qualify for mortgages and other loans with the same bank. Additionally, taking out a loan and paying it as agreed will help you build your credit scores.
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Alternative credit scores: If you're turned down for a loan or credit card, you can check to see if the creditor will generate an UltraFICO Score score for you, which is a score that considers both your credit history and your banking history. Alternatively, you can link your bank account to Experian Boost and your bill payments from the account might impact a version of your Experian credit scores.
Read more: Does closing a bank account hurt your credit score?
Frequently asked questions
Does opening a checking account build credit?
Opening a checking account doesn't build credit since your checking account activity is not reported to the credit bureaus.
Does your credit score drop when you open a bank account?
No, your credit scores do not drop or increase when you open a bank account.
Is there any harm in opening a new checking account?
Opening a new checking account won't harm your credit. In fact, having a checking account can help you better manage your finances and potentially improve your credit as a result.
