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What is the impact of closing a savings account on my credit score?

Curious about Savings accounts

What is the impact of closing a savings account on my credit score?

Closing a savings account typically does not have a direct impact on your credit score. Credit scores are primarily influenced by creditrelated activities, such as borrowing and repaying debts, rather than savings or deposit accounts.

Credit scores are mainly based on information provided by lenders and creditors, including your payment history, credit utilization, length of credit history, types of credit, and new credit inquiries. Savings accounts are not typically reported to credit bureaus unless they are associated with an overdraft line of credit or linked to a loan.

However, it's worth noting that indirectly, closing a savings account could potentially affect your credit score if it leads to changes in your overall financial situation. For example, if you close a savings account that is linked to a loan or credit card as collateral, it may impact your credit utilization ratio or available credit limit, which are factors considered in credit scoring models.

It's always a good idea to maintain a positive credit history by making timely payments on your debts and managing your credit responsibly. While closing a savings account itself may not impact your credit score, maintaining a healthy credit profile overall is essential for maintaining a good credit score.

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