Many of us have more than one checking account with one or more financial institutions. For example, joint checking, business checking, personal checking and more. But can having numerous checking accounts affect your credit score? The good news is that ?no? is the simple answer. Banks do not report checking activity with credit bureaus. However, the bad news is that your behavior and financial management of multiple checking accounts can get you in trouble with your credit score if you do the wrong things. Keep those statements clean Consider for a moment that you are applying for a home loan. Your mortgage broker says to you that the loan underwriter needs to see your bank statements for the past 2 to 6 months. After you gather the statements and get them in order you review them and notice there were a few times when you errantly made pu ppi reclaim rchases with insufficient funds. The statements may show a negative balance and an overdraft fee in those instances. What will the underwriter think of this? It is a negative outcome indeed. Even though the insufficient funds do not appear on your credit score your loan underwrite may take the overdrafts into consideration when evaluating your creditworthiness. Your documentation of bad financial management could make a difference in the interest rate offered to you, or whether or not you are approved altogether. Closed for Cause Your conduct with multiple checking accounts can be a challenge for your financial management if you are not careful. With numerous accounts comes the responsibility to assure that there is sufficient available funds, and you need to assure that you abide by the checking account rules agreed upon when you set up the account.
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