credit score

How Closing Your Oldest Bank Account Can Influence Your Financial Health

Understand how closing an old bank account might impact your credit score and financial planning.

Richard Walker

28 Jul 2025 — 2 min read

Person thinking about closing a bank account with financial symbols

Have you ever wondered whether closing your oldest bank account is a good idea? It's a common concern, and one that can have implications for your overall financial health. If you’re like me, you’ve probably pondered how such a seemingly simple action can potentially affect something as substantial as your credit score.

Will Closing an Old Bank Account Affect Your Credit Score?

Let’s dive into the heart of it. Closing your oldest bank account might not directly impact your credit score because checking and savings accounts aren’t typically reported to credit bureaus. However, there can be indirect effects. For instance, if that account is tied to your longest-standing credit card, shutting it down might affect your credit history length—an essential factor of your credit score calculation.

Bank account closure impacting credit score

Understanding Credit Score Factors

Credit scores are calculated based on several factors:

Payment History: Do you make payments on time?
Credit Utilization: The ratio of your credit card balances to credit limits.
Length of Credit History: How long your credit accounts have been active.
New Credit: How often you apply for new credit.
Type of Credit: The mix of credit cards, retail accounts, installment loans, etc.

Learn more about credit score factors here.

When Might it Be a Good Idea to Close an Account?

There are scenarios where closing an account makes sense. Maybe you’ve reached a point where it's no longer beneficial. If the account has high fees or it’s causing difficulties in tracking your finances, it’s worth considering closure.

Weighing pros and cons of closing a bank account

Strategies for Managing Impact

If you do opt to close an account, there are ways to mitigate any negative impacts. Consider opening another account first to maintain a stable average account age. Also, ensure your remaining account has good terms and meets your needs.

Final Thoughts: To Close or Not to Close?

In the end, whether or not to close your oldest bank account is a personal decision. Consider the broader picture of your financial goals and the potential indirect consequences. What’s most important is having a plan that aligns with your financial health and lifestyle goals.