Closing a checking account is a fairly simple process, but there is a right and wrong way to do it. If you don’t follow the right steps it could hurt your credit score or make it harder to open another checking account in the future. This applies to Chase accounts as well, so be sure to follow the steps below before closing your checking account.
There might come a time when you decide that closing an account with your bank is a good idea. It could be to consolidate your funds, stay on track with your spending, or join a bank that better aligns with you and your financial values. However, closing a checking account can come with unintended consequences like fees and credit score risks if you do so without following the proper steps. In this article, we will explain what you need to know about closing a Chase checking account and how to do so.
Is it bad to close a checking account?
The good news is that banks do not generally report activity in checking accounts to the credit bureau. This means that if you close a checking account that is in good standing, without excessive overdraws, closing your checking account will not affect your credit score.
However, if your account is overdrawn for an extended period, it may affect your credit score. Thus, it is a bad idea to close a checking account with an outstanding (negative) balance or pending or unpaid bank fees. This will likely affect your credit score. Make sure you pay off all outstanding balances before closing a checking account. You can read more about how opening or closing a checking account can affect your credit score here.
As long as your account is in good standing, Chase will also not charge a fee for closing the checking account.
What should I do before I close my checking account?
If you decide that closing your checking account is the right decision for you, there are a few essential things you should do first:
Open a new account
Make sure you have a new or existing account open and ready to use. You will want to have this account open to transfer any existing funds you have in your checking account before you close it. Review SuperMoney’s guide for the best checking accounts available to find an account that fits your every need.
Zero your balance
When we say “zero your balance,” we just mean transfer any funds you have in your checking account to another account. You do not want to close an account with any funds in your checking account! You could also choose to withdraw all the money in your checking account in cash, but it can be dangerous to carry excess cash on you, so be careful. Read here for all the benefits of storing your money in a checking account!
Review subscriptions and auto payments
Make sure to transfer all your subscription purchases, like Netflix or Spotify, to a different account. If you use your checking account to make auto-payments on a credit card, also make sure to set those up with a different account. This prevents your new account from racking up late fees and negatively affecting your credit score.
If you are paid by direct deposit by your employer or receive other regular deposits, make sure you notify them of your account change. Be ready to provide your new account number.
Pay off outstanding balances and fees
As mentioned above, closing a checking account with a negative balance can negatively affect your credit score. Make sure you pay off all balances and fees before you close your account to ensure you are in the best standing with credit agencies.
How do I close a Chase checking account?
Chase makes the process of closing a checking account relatively simple. If you believe this is the right decision for you, there are several options for how to proceed. In most options, your Chase checking account will close within 2 business days.
There should be a customer service phone number on the back of your Chase card. Call this number and ask the service representative to close your account. They will likely ask for personal information to prove your identity, but they should be able to assist you without issue. If you have difficulty finding the number on the back of your card, you can also call the Chase customer service number at 1-800-432-3117.
After navigating to Chase.com and logging into your account, locate their secure messaging system. You should be able to find it under “Secure Messages” on the left side of the screen. Select the option that says, “I have a question about one of my accounts.” A drop-down menu should display your account numbers. Select the account number that corresponds to the account you want to close and in the message box write that you want to close this account. If you feel it is necessary, you can provide additional information, although Chase will be able to close your account without it.
You will be able to close your account at any Chase branch. Ask to speak to a banker about closing your account, and be prepared to show forms of identification like a driver’s license or social security card.
If you do not manage your account online or do not feel comfortable closing your account by phone or in person, you can send a letter in the mail. Make sure you include your name, account number, address, and a message requesting to close the account. Note that this option will take longer to close than 2 business days, as mail delivery time is not guaranteed. You can mail your request to: National Bank By Mail, P.O. Box 36520, Louisville, KY 40233-6520.
Options to consider before canceling your Chase credit card account
If you are planning to close a Chase credit card account because you no longer need the card or don’t want to pay the annual fee, consider these options:
- Ask Chase to waive the annual fee. Call Chase and explain you would like to keep the account open but can’t justify the annual fee. In some cases, Chase may offer to waive the fee for a year.
- Request a product change. You can often downgrade your card so it no longer has an annual fee.
- Safely store your credit card. You don’t have to close the account just because you are no longer using your card. An open credit card account will help you lengthen your average credit history, which can improve your credit score.
Frequently asked questions
How will my credit score be affected?
In general, closing a Chase checking account will not hurt your credit score. However, it could damage your score if you close it with a negative balance. Closing a checking account with a negative balance can also make it difficult for you to open another checking account in the future.
Does Chase automatically close accounts?
Chase has not published a public policy for automatically closing accounts. However, they do have the right to close an account at any moment. So do you. Section VIII of Chase’s Deposit Account Agreement is dedicated to the closing of accounts. We attached the full section below for reference, but the short of it is that they can close your account at any moment if you don’t break the checking account agreements. There have been reports of Chase closing the business accounts of companies involved in certain industries, such as adult entertainment workers, but Chase has denied the claims. In general, banks will not close your account unless it’s inactive, you use it for illegal purposes, or you have a negative balance.
Either you or we may close your account (other than a CD) at any time for any reason or no reason without prior notice. We are not required to close your account at your request if you have pending transactions, the account is overdrawn, your account is subject to legal process (such as a garnishment, attachment, execution or levy) or any type of holds (such as collateral hold, decedent hold or deposit hold). In those cases, we will limit the types of transactions that you can make until pending transactions are paid or returned, the balance is no longer negative and any legal restriction/hold has been released. After we restrict your account in preparation for closing, we will not pay any additional interest on the account. We may automatically close your account if the balance is $0 or negative. Either you or we may close your CD account on any maturity date without cause.
We may send you written notice that we have closed or will close your account and return the balance less any fees, claims, setoffs or other amounts if the balance is greater than $1. After your account is closed, we have no obligation to accept deposits or pay any outstanding checks, but we may reopen your account if we receive a deposit. We will have no liability for refusing to honor any check drawn on a closed account. We have the right to advise consumer reporting agencies and other third-party reporting agencies of accounts closed for misuse, such as overdrafts.
This agreement continues to apply to your account and issues related to your account even after it closes.
Does it cost to close a Chase bank account?
No, there isn’t a fee for closing a Chase bank account. However, you will need to make sure you don’t have a negative balance. Chase is not required to close an account if you owe money to the account (i.e. you’re in the red).
Can I close my Chase account with a negative balance?
You can try, but Chase is unlikely to accept your request if you are in the red. Chase’s Deposit Account Agreement clearly says on this subject: “We are not required to close your account at your request if you have pending transactions, the account is overdrawn, your account is subject to legal process (such as a garnishment, attachment, execution or levy) or any type of holds (such as collateral hold, decedent hold or deposit hold).” This is not just Chase, of course. Banks in general are not in the habit of closing accounts that have a negative balance. As long as your account has a negative balance, Chase may continue charging you interest and fees. However, in some cases, Chase may decide to close an account with a negative balance if it determines you are unlikely to repay the balance.
Can I close my Chase account without notice?
Absolutely. Chase’s Deposit Account Agreement clearly states that “Either you or we may close your account (other than a CD) at any time for any reason or no reason without prior notice.”
- Closing your Chase checking account can be simple, but be sure to complete the below steps before alerting Chase of your closure:
- Open and activate a new account;
- Transfer any funds in your old account to your new account;
- Pay any remaining late or overdraft fees on your old account; and
- Transfer any automatic payments or deposits to your new account.
- If your account is in good standing, closing your checking account will generally not affect your credit score.
- However, you could hurt your credit and your chances of qualifying for an account if the future if you close an account with a n negative balance or outstanding fees.
- There isn’t a fee for closing a Chase bank account. However, you will need to make sure you don’t have a negative balance.
- How to close a Chase checking or savings account? – Wise.com
- How to close a Chase account – Bankrate
- How To Close Chase Checking Account Online 2021 (4-Ways) – Tech Rudraji
- Is It Okay to Open and Close Checking Accounts? – SuperMoney
- Can Opening or Closing Your Bank Account Hurt Your Credit? – SuperMoney
- Best Checking Accounts in 2021 – SuperMoney
- What Are The Benefits Of A Checking Account? – SuperMoney