I opened a saving and a checking account in Chase bank. But I decided to close them. I want to know will this has a bad effect on my credit, etc?
I also like to know should I pay money to close my accounts?
3
-
5Checking accounts are not credit accounts. Savings accounts are not credit accounts. Is someone saying that you need to need to pay money to close your Chase accounts?– RonJohnCommented Jun 15, 2021 at 23:11
-
Related: Will it hurt my credit to keep a bank account at a credit union, but not use it?– Ben MillerCommented Jun 16, 2021 at 11:38
-
@RonJohn I added the US tag to make it clear that's where we're talking about, because what you said is true in the US, but not in other places like the UK where overdraft lines of credit are common.– user71659Commented Jun 17, 2021 at 0:55
Add a comment
|
3 Answers
I want to know will this has a bad effect on my credit, etc?
Closing a checking and/or savings account should have zero impact on your credit score.
There is a risk if you close the account, and you have written a check and it hasn't been cashed yet. If that was to result in a bounced check or a debt to the bank that could impact your credit history. Also bounced checks can result in some systems rejecting your checks even from your new bank account.
I also like to know should I pay money to close my accounts?
It shouldn't cost you money unless you signed a special deal that required you to maintain a certain balance, or to keep the account open for x months. Most of these requirements are there to qualify for a special bonus or special rate, closing the account would disqualify you from the deal. Most of these deals don't pay in advance, so it shouldn't cost you money. Check the paperwork you were given when you opened the account.
answered Jun 15, 2021 at 21:13
-
Personally curious question: how would this affect a debit card that gets used as credit? If that card closes then OP would lose a line of credit, no? Commented Jun 16, 2021 at 16:51
-
Sorry for such a simple question but I've never owned a debit card; always credit. Commented Jun 16, 2021 at 16:58
-
2@MonkeyZeus No. A debit card is not a credit card. It can be used similar to a credit card, but it simply pulls money directly out of your checking account. It does not extend a line of credit, and so it does not affect your credit report. Commented Jun 16, 2021 at 17:17
-
@BrianRogers Thanks! I just wasn't sure whether that hybrid-ness had any effect. Commented Jun 16, 2021 at 17:54
-
@MonkeyZeus If you're referring to "deferred debit" cards, which are rare but exist in the US, those aren't treated credit (except for certain paperwork), because your account's available balance is subtracted, so no credit is extended. In Europe, however, deferred debit acts as a partially secured credit card and is legally closer to credit. Commented Jun 17, 2021 at 1:03
Note that opening and closing of checking and saving accounts in the US does appear on other reports, which banks would reference among other things when processing your future application for new checking/saving accounts.
Closing checking or savings accounts have zero effect on your credit report because opening/closing an account is not a reported event.
However,
If you had $20,000 in one of the accounts, withdrew it as cash to put under your mattress, and are trying to apply for a mortgage then the mortgage officer could deny your loan on the basis that you don't have enough liquid assets on record.
The same thing applies if you're in the middle of a loan application process. If your finances drastically change without explanation then you can get denied.
answered Jun 16, 2021 at 19:59
