As I understand it closing an account like a regular checking or savings won't harm your credit? Is this accurate?

Also, is this something you can do online or over the phone? Main reason I'm wanting to close is the number of brick and mortar locations of my bank (Capital One) seems to have greatly diminished. It's been a couple years since they've had one in the town where I live (Corpus Christi TX) and all of the ATM fees and such tend to add up over time. Not to mention I have no way of depositing any loose cash on hand.

I've finally decided to open up a new checking account tomorrow and have my direct deposit and my autopay bills linked there. Is it a hassle to close out an account with a bank when there isn't a brick and mortar retail location within hours of me?

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Posted by Puffoluffagus

Savannah, GA

Member since Feb 2009

6096 posts

Posted on 11/14/19 at 8:32 pm to Powerman

quote:
As I understand it closing an account like a regular checking or savings won't harm your credit? Is this accurate?

No effect. They aren't even on your credit report to begin with.

quote:
Is it a hassle to close out an account with a bank when there isn't a brick and mortar retail location within hours of me?

Somewhat. I don't know what capital one policies are, but we had to close a regions account one time after we moved out of state and there were none in the region. Ultimately we had to mail in a form with signatures, copy of license and how we wanted the remaining funds disbursed. Took a few weeks to finalize everything.we couldn't do it over the phone/online...

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Posted by Powerman

Member since Jan 2004

162194 posts

Posted on 11/14/19 at 8:47 pm to Puffoluffagus

Figured that might be the case. I'll call tomorrow and see what I need to do.

Thanks

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Posted by Twenty 49

Shreveport

Member since Jun 2014

18726 posts

Posted on 11/14/19 at 10:01 pm to Powerman

I’d leave a small balance in there until sure the direct deposit and the auto-bills are going to the new bank. Could be a PITA if a paycheck or utility bill goes to a closed account, I’d avoid any potential hassle by waiting a billing cycle or so. Also want to make sure any outstanding checks have cleared.

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Posted by Bard

Definitely NOT an admin

Member since Oct 2008

51475 posts

Posted on 11/15/19 at 8:17 am to Twenty 49

quote:
I’d leave a small balance in there until sure the direct deposit and the auto-bills are going to the new bank. Could be a PITA if a paycheck or utility bill goes to a closed account, I’d avoid any potential hassle by waiting a billing cycle or so. Also want to make sure any outstanding checks have cleared.

This.

It's far easier to take most of the funds out of an account than it is to close an account.

Take a large amount out via a branch and use that to open your new account. Leave a thousand or so in the old account to cover bills you might have forgotten were tied to your old account.

Once the new account is up and running start assigning your bills to it (utilities, credit cards, whatever). After 6 months or so of no activity on the old account, take out all but the minimum needed to keep it active and then shut it down from there.

This way they are less likely to make it a hassle for you and if they do the impact on you is pretty much just annoyance.

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Posted by Powerman

Member since Jan 2004

162194 posts

Posted on 11/15/19 at 3:15 pm to Twenty 49

quote:
I’d leave a small balance in there until sure the direct deposit and the auto-bills are going to the new bank. Could be a PITA if a paycheck or utility bill goes to a closed account, I’d avoid any potential hassle by waiting a billing cycle or so. Also want to make sure any outstanding checks have cleared.

I still have the other account open with 300 dollars in it

Sometimes our direct deposit takes a week to transfer bank accounts so I want to make sure my next paycheck doesn't go into a black hole. I changed the payment method on all my utilities and car insurance so I should be good.

Thanks for the tips

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