Switching Banks And Credit
October 4, 2016
Most banks provide a wide variety of products to their customers. Switching banks can have an impact on your credit score, but this all depends on what products you use at each bank. Before you change banks, there are a couple of things that you should be aware of to keep your credit score from taking a hit.
If you change banks for your savings and checking accounts or other investment products and your accounts were in good standing at the time of the switch, this has no impact on your credit. However, if your accounts were overdrawn and the bank charged off the accounts, this will negatively impact your credit and will be entered on your credit report.
If you have a loan with a bank and refinance this loan with another bank, this will be reflected on your credit report. It can also lower your credit score by a couple of points, but your score should bounce back up within a few months. Making a lot of changes to your credit file, such as opening and closing accounts, within a short period of time can cause a small hit to your credit score. This is usually not a big deal and nothing to worry about.
If you have questions about your credit score or would like information on increasing your score, we can help. You can call us and speak to a credit expert who can help you pull your credit report and see if what is exactly being reported. If there are are any inaccuracies on there that are negatively affecting your credit score then we have a proprietary program where within just 6 months we can have your credit repaired and your score as high as possible. The number to reach us is 888.799.7267. And as always, consultations are free.