 Bank
accounts not on credit report
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 Dear
Dr. Don,
I know the length of your credit history affects your FICO
score. How does opening and closing bank accounts, or switching banks, affect
your credit score?
-- Judy Jump
 Dear
Judy,
The opening and closing of bank (deposit) accounts doesn't affect
your credit score. Your credit score is based on your lending relationships
and public records, such as bankruptcy filings or court judgments
recorded against you.
There are consumer reports that track your banking
history. These reports fall under the Fair Credit Reporting
Act, or FCRA, and you have the right to dispute information in these
reports under the dispute provisions of that act.
The
most widely used consumer banking report is a ChexSytems report. A Bankrate
feature, "How
to get your specialty consumer reports," explains how you can request
a free copy of that report and other noncredit consumer reports. You can
get one free copy of each of these reports annually just like you can with your
credit reports.
Negative information stays on your ChexSystems report
for five years. Banks will typically take a look at a report
before deciding whether they want you as a customer. If you're
jumping from bank to bank to accumulate awards, or toasters, it
could influence a bank's decision to take on your business.
Lenders do often look at your banking
relationship as part of the decision to extend you credit, but that doesn't mean
it shows up in your credit score. Remember the part of the credit application
that asks you to list a bank account?
To ask a question of Dr. Don, go to the "Ask
the Experts" page and select one of these topics: "financing
a home," "saving & investing" or "money."
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