topic Re: Any Impact on Opening/Closing Checking Accounts in General Credit Topics

Any Impact on Opening/Closing Checking Accounts

md_rebuild — Thu, 13 Jun 2024 16:26:56 GMT

I'm not sure if this is the correct forum, so feel free to move if another is more appropriate.

I was hoping someone could provide clarity on a question that I have regarding opening/closing checking accounts. Recently, I have received a number of offers of free cash if you open a checking account and make 2 direct deposits within 60 days. Currently I bank at 2 locations, NFCU and Truist. NFCU is my main driver (checking/savings/auto loan/savings for kids) while my late wife and I decided on Truist for our joint account to pay the mortgage and since they were the only bank in the area that had safety deposit boxes. It is very easy for me to change my direct deposit, literally takes a ffew minutes on my work laptop. And all the banks I get offer from have branches within 5 minutes of me.

I took Wells Fargo up on their offer of $325, and they just deposited the bonus into my account. Basically, right when the deposit clears, I just did an ACH transfer to NFCU, where all my bills are paid.

I've also received an offer from Chase ($300) and Capital One ($250). And i was about to set those accounts up and plan out the direct deposits, when I thought I might want to check to see if opening this many accounts raises any red flags with FICO or other entities. I'll probably close the WF in a few months, but I might keep the Chase (since I may want a Chase CC once my BK7 falls out), and unsure about Capital One (I have 2 CC with Capital One).

Does anyone have any insight into this? Any potential issues (other than trying to keep track of everything!)

Re: Any Impact on Opening/Closing Checking Accounts

Slabenstein — Thu, 13 Jun 2024 16:31:51 GMT

As long as the FI doesn't do a hard pull for new checking, opening and closing checking accounts won't affect your credit reports or FICO scores, since checking account activity isn't reported to the bureaus. Opening several accounts in a short period of time can rack up inquiries on ChexSystems and like reports, though, which can result in checking or deposit account denials with some FIs.

Re: Any Impact on Opening/Closing Checking Accounts

GZG — Thu, 13 Jun 2024 17:14:36 GMT

@md_rebuild wrote:
I'm not sure if this is the correct forum, so feel free to move if another is more appropriate.

I was hoping someone could provide clarity on a question that I have regarding opening/closing checking accounts. And i was about to set those accounts up and plan out the direct deposits, when I thought I might want to check to see if opening this many accounts raises any red flags with FICO or other entities. I'll probably close the WF in a few months, but I might keep the Chase (since I may want a Chase CC once my BK7 falls out), and unsure about Capital One (I have 2 CC with Capital One).

Does anyone have any insight into this? Any potential issues (other than trying to keep track of everything!)

so there's two major credit reports for deposit account activity: EWS and Chexsystems

opening too many deposit accounts too quickly might make other bank accounts you might try to open decline you when you try to open future accounts, but assuming there's no negative information like bad checks or fraud or charged off deposit accounts or something, it's not something I would worry about at all.

ideal EWS report/score behavior would like if you waited 6 months after opening before closing, but if you're not doing any sort of fraud or charging off of your deposit accounts, I wouldn't be concerned about it at all.

People open 50+ bank accounts and assuming there's no fraud, the worst that happens is a denial when you go to apply, I've never heard of any AA on current, positive accounts.

Re: Any Impact on Opening/Closing Checking Accounts

pizzadude — Thu, 13 Jun 2024 17:47:21 GMT

Moved to General Credit

Re: Any Impact on Opening/Closing Checking Accounts

md_rebuild — Thu, 13 Jun 2024 17:56:32 GMT

Thank you all for the prompt responses!

Re: Any Impact on Opening/Closing Checking Accounts

FicoMike0 — Fri, 14 Jun 2024 00:55:40 GMT

Capone, Chase and wells are all early warning systems banks. None are known to be inquiry sensitive. If you're going to do checking sub churning doc is a good resource,

https://www.doctorofcredit.com/best-bank-account-bonuses/

Good to switch out between ews and Chex banks. A pretty good deal right now is the $500 usb offer.

Re: Any Impact on Opening/Closing Checking Accounts

FicoMike0 — Fri, 14 Jun 2024 00:56:24 GMT

Usb is an ews bank too.

Re: Any Impact on Opening/Closing Checking Accounts

FicoMike0 — Fri, 14 Jun 2024 00:59:21 GMT

And another thing, it's good to decline any overdraft protection when opening checking accounts, to avoid a hard credit pull. I keep all three reports frozen, just in case.