Closing a Money Market Account?

Question

I was going to close my money market account at one bank and transfer it to a Capital One account paying a better rate of interest. Will my credit score be affected by closing one account and opening another ?

Answer 1

No. Closing deposit accounts has no affect on your credit. The only way that you will be negatively affected is if you have overdrawn the account, not worked out a payment plan with the bank and the bank has closed your account at a negative balance. At this point you may be unable to open another account. This still may not affect your actual credit score. The only situation in which your score will be lowered is if the bank turns your debts over to a collection agency and they report it to the credit bureaus. In your situation, with savings and getting better interest rates you have nothing to worry about!!!