Checking Accounts

[Skye12329]

So i was told that if you close or have a bank close a bank account because it was dormant will tank your credit for 3 yrs, like TANK it. Is this true? I mean why would banks do this?

[09Lexie]

Unless it was a charge off/collection account- bank accounts do not report to your CRs

[Rikku]

That has never been my experience, and I've switched banks several times. Maybe it's true that you credit would be negatively affected if you left an account overdrawn and the bank closed it - could that be what they were talking about?

[Skye12329]

Alright just wondering because i have 3 bank accounts and i dont use one of them and its kinda dormant but none of my accounts are ever overdrawn

[takeshi74]

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@Skye12329 wrote:

So i was told that if you close or have a bank close a bank account because it was dormant will tank your credit for 3 yrs, like TANK it. Is this true? I mean why would banks do this?

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Always consider the source.  Where did you hear this from?

[RobertEG]

Banks dont normally report to big-3 CRAs unless there is an adverse item, such as a CO.  No reporting = no scoring by those CRAs.

There are other CRAs that collect and sell bainkig-related information, but reporting is generally limited to adverse banking information, and those CRAs dont retain broad  consumer information needed to generate a FICO score, so dont even have a licenising agreement with Fair Isaac to sell scores generated from their files.

Thus, on the broader issue of effect on credit, if one were to pull a report from such a CRA, prior negative banking information could affect your credit, but not your FICO score.

Closing an account due to dormancy is not an adverse reporting, so I doublt it would even be reported to such a CRA, and if it were, i see no negative implications.