 TITLE: Could Closing a Bank Account Affect My Credit? CONTENT: While the actual closure of a bank account won't impact your credit, it's possible for it to indirectly impact your credit score if the account had a negative balance when it was closed.\nIn this case, if you don't pay off the debt you owe in a timely manner, the bank or credit union could send it to a collection agency. The agency may choose to report the collection account to the credit bureaus, which can have a significant negative impact on your credit score.\nWhat's more, the collection account will remain on your credit report for seven years from the date of the original delinquency, whether or not you pay it off.\nIn addition to potential harm to your credit score, an overdrafted bank account that's been closed may also get reported to ChexSystems, which manages your banking report—this is similar to a credit report but only lists information about your current and past banking activities.\nWhether you or the financial institution closed the account, leaving it with a negative balance could make it difficult for you to get approved for another traditional bank account in the future. If this happens, you may need to opt for second-chance bank accounts or prepaid debit cards. END