Does a checking account build credit?

A credit report tracks credit accounts, like mortgages, loans and credit cards, with their limits, balances and payment history. It also lists collections, public records like bankruptcies, and inquiries.

The CFPB says the three big credit bureaus typically don't include your checking account or check-writing history. Debit card payments typically aren't reported either: you're not borrowing money you need to repay later, so they don't show you can pay off debts.

Your banking history goes to separate checking account reporting companies, such as Chex Systems and Early Warning Services. Banks use those reports to decide whether to open an account for you.

You can ask each checking account reporting company for a free copy of your report every 12 months.

1. 1

   An unpaid negative balance

   If the bank closes your account with a negative balance, it typically reports that closure to a checking account reporting company.

2. 2

   The debt goes to collections

   Debts from negative closing balances are sometimes passed to debt collectors, who may report them to the three big bureaus. That affects your credit report and score.

A bounced check usually isn't reported to the credit bureaus by the bank. But if the check was paying a bill, like a credit card, that creditor may report the payment as late.

Opening a checking account doesn't affect your credit score, says BMO, though adding overdraft protection or a line of credit may bring a credit check.

The CFPB points to products whose payments are reported to the three bureaus: