Multiple Bank/accounts damage your Fico Score?

[amarowsky]

Does opening multiple bank accounts from different banks damage your FICO score?

Say Every undetermined period of time under a year I switch banks to keep up with the highest % interest offered, would this lower my credit at all or would it not make a difference? (or other)

[boosami]

No. Checking accounts only result in a "soft" inquiry to your credit report (if at all) and do not harm your score at all.

[MyLifeFinance]

But there are small penalties that incur when you leave accounts dormant for too long.

[boosami]

But there are small penalties that incur when you leave accounts dormant for too long.

Opening, closing, using, ignoring, and doing anything with bank accounts has absolutely no effect on your credit report or score. The only exception is if they have a line of credit attached to them. I'm not sure what you're talking about here.

[MyLifeFinance]

That's odd. I've always been told that leaving a bank account dormant takes away a few points. I don't have any textual evidence, it's just something that I was told.

[poundwise]

Opening, closing, using, ignoring, and doing anything with bank accounts has absolutely no effect on your credit report or score.

This is absolutely inaccurate. A significant number of banks and other financial institutions will, in fact, do a hard pull to your credit when opening an account. This is often true of both checking and savings. A quick search online will turn up a few lists of banks and credit unions known to do perform hard pulls for checking and/or savings accounts.

It is true, many banks only perform a soft credit inquiry, unless you are applying for an account with an available line of credit, such as overdraft protection on a checking account. However, as there are many others that do a hard pull, it is wise to ask before applying, if this is a concern to you.

[poundwise]

That's odd. I've always been told that leaving a bank account dormant takes away a few points. I don't have any textual evidence, it's just something that I was told.

I don't believe that has any merit. Dormant bank accounts are not an issue when it comes to your credit report/score.

Perhaps you, or the person who told you, is confusing this with the idea of dormant credit lines. Some people leave credit lines open but do not use them. These lines of credit eventually fall into a dormant status and they are no longer figured in as a part of the balance owing to available credit ratio.

[boosami]

This is absolutely inaccurate. A significant number of banks and other financial institutions will, in fact, do a hard pull to your credit when opening an account. This is often true of both checking and savings. A quick search online will turn up a few lists of banks and credit unions known to do perform hard pulls for checking and/or savings accounts.

It is true, many banks only perform a soft credit inquiry, unless you are applying for an account with an available line of credit, such as overdraft protection on a checking account. However, as there are many others that do a hard pull, it is wise to ask before applying, if this is a concern to you.

Wow, I had no idea... I find it truly ridiculous that a bank can do a hard inquiry and potentially damage your credit for depository accounts. That affects your credit score as if you applied for a loan, and a depository accounts is like the opposite of that. Banks can obviously make things work fine with a soft pull, so I don't think they should be allowed for non-credit accounts.

I looked up some lists of banks known for "hard" pulls, though, and I find them to be wildly inaccurate from my experience. I have accounts with many listed as "hard pullers" and I have never had a bank do a hard pull for a depository account. I just opened two accounts (checking+saving) at a bank listed as a hard puller in every list I found on the internet and I did not get a hard pull.

If it ever happened to me, I would call the bank immediately and tell them to remove it so I could dispute it off my report. If they said no, I'd be moving my accounts to another bank.

[good2goo]

I check my credit pretty regularly and I have never seen a hard inquiry for any checking accounts Ive opened. Im not saying that there are no banks that do, but I doubt the major banks do as Ive had ING, BofA, Chase, US bank and a few others. I usually sign up to get the open bonus they give. I got an iPod shuffle once for opening a chase account.

[MonkeyMama]

I can't remember if I have seen any hard pulls from banks.

I overall wouldn't worry about it, unless you were trying to increase a low score, etc.

My personal experience with a high score is that it doesn't make any difference. Most the banks I have accounts with are smaller or lesser known.

[poundwise]

...I doubt the major banks do.

Again, this is an incorrect assumption. The size of a bank has little to nothing to do with their policy and practice in this matter. Check forums at myfico.com, FatWallet, and many other blogs and sites for further info.

LINK

I overall wouldn't worry about it, unless you were trying to increase a low score, etc.

Ditto. I read, in an article that was an interview with a person with the ABA, that even hard inquiries, for the purpose of opening a new account, do not affect your score very much or for very long. Bottom-line, if it is a concern for you, ask before applying.

[amarowsky]

No my credit score is fine, I am just interested in always obtaining the best interest for my EF or dormant money to sit in, also I guess I could start taking advantage of the free "x" that is offered for certain banks if it is worth while to open an account for the "x" that is offered.

Thank you all for your information!