Opening a checking account usually does not affect your credit score. Banks and credit unions don’t report your checking activity to the credit bureaus, so your account balance and everyday transactions won’t show up on your credit report.
That said, there are a few situations where your credit score could take a hit. A hard credit inquiry, overdraft protection that acts like a line of credit, or unpaid overdraft fees sent to collections may all leave a mark. This guide explains when a checking account can impact your credit score and what really matters more.
How a Checking Account Can Impact Your Credit Score
For the most part, opening a checking account won’t affect your credit score. But there are a few situations where your score could take a small hit.
Hard Credit Inquiries
Most banks don’t check your credit when you open a checking account, but some do. If they run a soft inquiry, your credit score won’t be affected. A hard inquiry, however, can lower your credit score by a few points.
While a single hard inquiry is usually no big deal, multiple inquiries in a short period can add up. Hard inquiries also stay on your credit report for two years, which lenders may see as a sign you’re taking on too much credit.
Overdraft Protection
If you sign up for overdraft protection that links to a line of credit, the bank may run a hard inquiry before approval. That can cause the same small dip in your credit score as opening a credit card or loan. If you want to avoid that, consider skipping overdraft protection or linking it to a savings account instead.
Unpaid Overdrafts
Simply overdrawing your checking account doesn’t show up on your credit report. The problem comes if you leave fees unpaid or your account goes negative and is closed. Banks may send the debt to a collection agency, which will report it to the credit bureaus. That kind of negative mark can hurt your credit score much more than a hard inquiry.
What Banks Review Instead of Your Credit Score
The biggest factor is your ChexSystems report, which tracks things like unpaid overdraft fees, bounced checks, or accounts closed for misuse. If you’ve had problems in the past, that record can make it harder to get approved. In that case, you may need to look at banks that don’t use ChexSystems or consider a second chance checking account.
Banks also check for a few basic requirements:
- Legal age: At least 18 years old (or a minor with a parent or guardian).
- Identification: A Social Security number or taxpayer ID.
- Address: A U.S.-based home address.
Your credit score isn’t a major factor in checking account approval, but it’s still worth monitoring since it plays such a big role in borrowing and overall financial health.
Why Checking Accounts Don’t Build Credit
A checking account is useful for managing your money, but it doesn’t help you build credit. That’s because banks don’t report your deposits, withdrawals, or balances to the three major credit bureaus. Since those details never appear on your credit report, they can’t raise your credit score.
If your goal is to establish or rebuild credit, you’ll need products designed for that purpose. Options include secured credit cards, credit-builder loans, or hybrid accounts that combine checking with credit reporting. These tools report your payment activity to the credit bureaus and can help strengthen your credit profile over time.
Factors That Impact Your Credit Score More Than a Checking Account
While opening a checking account has little influence on your credit score, other factors carry much more weight in how lenders see you.
Payment History
Your payment history makes up 35% of your FICO score, making it the single most important factor. Even one late payment can cause a noticeable drop, and repeated late payments do even more damage. Paying bills on time is the best way to protect and improve your credit score.
Credit Utilization
Your credit utilization ratio—how much of your available credit you’re using—accounts for 30% of your FICO score. Using more than 30% of your revolving credit can lower your score, while keeping balances low shows lenders you’re managing credit responsibly.
Length of Credit History
The length of your credit history makes up 15% of your FICO score. Lenders look at the age of your oldest account, your newest account, and the average age of all your accounts. In general, the longer your history, the stronger your credit score.
Bottom Line
Opening a checking account usually won’t affect your credit score. What matters far more is how you manage your credit—making on-time payments, keeping balances low, and building a long history of responsible use. These factors make up the bulk of your FICO score and carry much more weight with lenders.
The only times a checking account might come into play are if overdraft protection involves a credit check or if unpaid overdraft fees are sent to collections. Outside of those situations, your checking account has little to no influence on your credit score.
Frequently Asked Questions
Does opening multiple checking accounts affect your credit score?
No, having several checking accounts does not affect your credit score because banks do not report checking account activity to the credit bureaus. The only way your score could be impacted is if multiple banks run hard credit inquiries during the application process, which is rare.
Will closing a checking account hurt my credit score?
Closing a checking account has no direct effect on your credit score. However, if the account has unpaid overdraft fees or a negative balance that goes to collections, that debt could be reported to the credit bureaus and damage your score.
Can I be denied a checking account for bad credit?
Most banks don’t use your credit score to decide on a checking account, so bad credit alone usually won’t stop you. Instead, banks often check your ChexSystems report, which records past issues like unpaid overdrafts or accounts closed for misuse.
Does overdraft protection always require a credit check?
Not always. Some banks link overdraft protection to a credit card or line of credit, which can trigger a credit check. Others simply connect it to a savings account, which doesn’t involve your credit report at all.
