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Question:


Will closing a bank account affect my credit score the same way closing a credit card account will?
-Bank2CreditUnion


Answer:


No. One of the key components of your credit score is the amount you owe divided by the amount you can borrow. The higher the ratio is, the closer you are to your aggregate credit limit and the less lenders and rating agencies like it. When you close a credit card account, the divisor – the total amount available for you to borrow – goes down, the ratio goes up and your credit score suffers. When it comes to the other side of your personal balance sheet, no such calculation comes into play. Anyway, rating agencies don’t much care where you keep your cash, as long as you have some cash to keep.
-Conrad de Aenlle



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