Commercial Bank and Checking Accounts

Does opening a checking account hurt your credit?


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2008-04-02 14:44:54
2008-04-02 14:44:54

It can if you don't keep an eye on how much money you use.

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Checking accounts are not normally reflected on a credit report.

If you owe NOTHING, it will not hurt your credit but may still prevent you from opening a checking account for up to 5 years.

Your credit history is what is important. If you are overdrawn or have been over drawn many times and the bank is charging you penalties it will hurt your chances of getting a credit card. If you have a credit line that protects your checking account like I do you just start drawing on that and it won't hurt your credit report.

no. You will hurt your credit when you close an open line of credit.

Opening a bank account can help your credit score, as can paying bills on time and getting a secured credit card. Retailer credit cards also help a credit score and having a good job can't hurt.

It will not affect your credit if you pay off the balance when you close the account.

Actually, it does. It uses the available credit you have so when that goes down the credit score does too.

Normally if a bank closes your account they will report you to chexsystems, telecheck, or early warning services. If the account is charged off, it may be turned over to a collection agency and in turn it could hurt your credit. It will also prevent you from opening a new account easily

NO! Not if you have paid the credit off before you get another one. Or if you are paying one credit card off with another, you can only do that so much befor it will hurt your cerdit.

It most likely will not hurt your credit to much, When you apply for credit it shows as an inquiry on your credit report. To many inquiries is bad. And opening an account and closing it right after shows instability to your credit report and it sticks there for 7 years.

A checking account isn't necessary for every single transaction, but it doesn't hurt to have one. In fact, a personal checking account is the preferred- if not only- method of paying off a majority of all credit cards and loans. There are checking accounts available that have low monthly fees or no monthly fee at all, and there are some regular checking accounts that you can get the fee waived for after meeting certain criteria (ie. maintaining a certain balance or receiving e-statements instead of paper statements).

Is the doctor going to turn the account over to a collection agency? A collection account would hurt your credit. Is the collection agency going to sell the account to another agency, thus extending the time period it shows on your credit report? If they do, it could hurt your credit for an even longer period of time.

No. It will show on a credit report as an account closed due to inactivity. It has no effect on your credit score.

To successfully close an account, you must first have a zero balance on said account. Otherwise, you will still receive bills on that balance, which can and probably will accrue late charges.

I recent late payment on an open account can hurt your credit score up to 60 points.

Yes if you do not use an they close you're account, but not really either way.

Your credit score and income are more important than an account in collections.

No it does not. Bank accounts are not part of a credit score. For more information about what is on a credit score, check out Phil Turner's book: The Credit Bible - Everything You'll Ever Want To Know About Credit.

paying off no, closing the account yes. 6,000 owed/10,000 credit limit =60% of credit used2,000 owed/3,000 credit limit=66% of credit used=lower fico

Here's what I've heard: Checking your score, by law, cannot affect your credit score. However, if several companies check your score in a short time (say you applied for several cards at once), then this will temporarily hurt your score. This depends on how and where you check. There are three major credit repositories: Equifax Experian TransUnion If a consumer goes to each bureau and requests their raw data, there is no impact their credit score. If, however, a consumer goes to a third party vendor, even through the bureau's own website, that WOULD generate an inquiry which MAY lower your credit score. Inquiries have very little impact on your credit score. Credit scores have been redesigned in recent years to account for the fact that many people shop for credit. The main factors in lowering a credit score are 1)making late payments or outright default and 2)level of credit balances.

if i let my vehicle get reposesed will it hurt my credit?

No, the score model recognizes the balance on the account in proportion to the credit limit as a percentage. For example, if you have a balance of $10,000 with a $ 50,000 credit-limit your proportion of balances to credit limit would be 20%. Vote on our video at

Yep! If the ambulance company turns your account over to a collection agency that agency might report the collection on your credit. Medical collections are the most common type of collection on a credit report.

Depends on how you define "hurt." You may well be able to obtain an account, the interest rate would probably, be painful.

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