Bank accounts can be a good representation of how responsible you are, but they do not show up on credit reports. This does not mean that bank accounts cannot affect your credit score or creditworthiness. A poor banking history could give banks good reason to reject future applications for an account.
Credit agencies leave bank accounts off credit reports because they do not correlate to whether a person is more or less likely to pay a loan back on time. The only time a bank account affects a credit score is when the account comes with overdraft protection. Overdraft protection is a small line of credit to buffer against going over your limit. Banks usually run a credit check to grant this type of service, which will hurt your score by about five points.
A consumer's banking history can still affect his credit and financial life, because consumer reports can list banking habits. The most commonly used consumer report in banking is the ChexSystems report. ChexSystems only contains bad information, so if you have a file in their database, the bank will probably reject you. Since 80 percent of banks use ChexSystems, finding a bank that does not check this database will require a lot of effort and luck.
Whether or not you have a ChexSystems report or a trade line on your credit report, banking history can still factor into a lender's decision to extend a line of credit. Credit applications often ask if you have any bank accounts and for how long. Also, banks might ask questions about your banking history when you apply for a mortgage or car loan.
You can add an explanation for any negative information on your ChexSystems report, suggests Carreon and Associates. Instead of asking for overdraft protection, you can link other bank accounts. If you go over your limit, the bank can withdraw extra funds from a linked account. You need some kind of insurance against a bad check, because bouncing one could lead the bank to pursue legal recourse. A public judgment will count harshly against your credit score.
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