How Does Closing a Savings Account Affect a Credit Score?
Credit scores measure consumers' "creditworthiness," or their likelihood to repay debt. Many things impact credit scores, such as credit cards, recent loans and home purchases. However, closing a savings account has no effect on a person's credit rating.
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Significance
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Savings accounts are not tied to a loan or a line of credit, so they do not show up on credit reports, according to My Bank Tracker. Credit bureaus use only the information on a person's credit report to calculate her credit score.
Misconceptions
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According to My Bank Tracker, a common misconception is that individuals can use debit cards, which are sometimes tied to savings accounts, as a line of credit. However, though these cards often bear credit card logos, they are not lines of credit.
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Potential
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Although closing a savings account does not impact your credit score, keeping your savings account open allows you to earn a small amount of interest on your saved money. Having a large amount of funds saved helps protect you from financial emergencies, allowing you to avoid missing payments and ruining your credit score.
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