Financial Information
does the number of savings accounts I have affect my credit score?
Question : does the number of savings accounts I have affect my credit score?
I currently have 2 savings account, but I’m thinking of opening 1 or 2 more to take advantage of deals with other banks(opening new accounts get some bonuses, a few higher yields.) Does this affect my credit score in any way?
savings accounts
Best answer:
Answer by Age of Reason
No. Many people have up to 10 accounts what with his and her checking, savings, mutual funds, cds, emergency savings and so on
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#2 written by Finance1o1.blogspot.com ® 1 year ago
It will have no affect on your credit score. Anything that has to with borrowing and missing payments will affect your credit score, including opening and closing credit card accounts.
By the way, if you really want to achieve higher returns in the long term, you should invest in mutual funds. There’s tons of facts out there that shows why mutual funds are better investments for retirement than leaving all your money in the bank. I currently invest $ 400/month in mutual funds that are inside my Roth IRA. At my bank, I only leave enough to cover my bills in my checking account and I have one savings account set aside for emergency purposes.
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#5 written by Skurkey 1 year ago
Short answer: Not by much.
Longer answer:
Your credit history and your savings history really don’t overlap much. Your savings and checking accounts aren’t listed on your consumer credit report. In fact, your savings and checking accounts have their own separate consumer report.Closing your old savings and checking accounts won’t do a thing to your credit report. There is a chance that opening new accounts will have some impact on your credit history and credit score. That’s because a bank can run a credit check (hard inquiry) on you before opening your account. Even though you’re not applying for credit, the hard inquiry will show up on your credit report. What’s on your credit report is what goes into your credit score, so these inquiries can impact your score.
In a recent Dr. Don column, ” Chase high-yield savings without fear,” I advised the reader that closing and opening deposit accounts would not impact his credit score. I was taken to task by a few readers who cited the hard inquiries as a reason to be concerned.
I asked Craig Watts, public affairs manager at Fair Isaac Corp., to weigh in on the issue. Here’s what he wrote:
“Bottom line, credit inquiries are usually a very minor contributor to a person’s FICO score and simply aren’t worth getting worked up about. In most cases, a hard inquiry costs the person’s score less than 5 points. People can help themselves by focusing their energy on the basics in score management: pay bills on time, keep card balances low and take on new credit only when it’s needed.”
So unless you already have credit problems, feel free to adjust your banking (deposit) relationships in a manner that best meets your needs. The impact on your credit score is minimal. - Comment Feed for this Post
No
Your credit score is derived from taking out loans and credit cards, not opening up bank accounts.