Will closing my checking account and opening another effect my credit score?

Question

I have always heard that closing accounts effects credit scores negatively so I was just wondering if that same applies for checking account. I would be opening the new account at the same bank, its just that the new account would have better benefits. Thanks!

Answer 1

No, this would not affect your credit. The only way it has the potential to is if you have a credit card through that bank and you close that. That would be considered a revolving account

and thats what people say not to close. If you have too many revolving accounts it can be a negative as well though, it means you debt to income ratio is high.

Answer 2

Nope. Your fine. People do that to test other deals or to have accounts for different occasions.

Answer 3

No. This has no bearing whatsoever on your credit file,since you are not extended any credit to have a checking acocunt.

good luck.

Answer 4

It will potentially show up on a credit report, but it won't effect the score.

Answer 5

It is true that closing accounts too quickly can negatively affect your credit score.  But that is for credit cards only.  Closing a bank account will not affect you.

But with credit cards, the reason that you don't want to close out too many cards all of the sudden is because creditors want to see "longevity" with various creditors (your banking acount is savings, not credit).  However, you do not want to have too much credit available to you either, as that indicates a potential to run yourself up in debt. So you can lower your credit lines.  

Still, don't be afraid to close some accounts.  Too many is not good either.  Keep the ones that you have had for the longest and the ones that you use the most.  The idea is to just show balance and moderation.  The rule of thumb is to have your debt spread out to where it is to about 1/3 of all your cumulative available credit.  

So if you have 4 credit cards, each with a 1000 limit (total $4000 credit), and your combined debt is $2000, then you would not want to consolidate it all on two (even if the interest is lower) and then close two.  Then you will have two cards that are maxed, and being maxed out (even if you have zeo balance on others) appears to be unmanagable dept.  So you just want to spread the debt out evenly.  Then you start to pay off the card with the highest interest rate first.

Answer 6

no..ppl do that everyday to get the best offers and service from banks..