You may have heard this great news that opening an account in a certain bank will improve your credit score. It would be really great if we could improve our credit scores by opening an account alone, yet it is not so easy unfortunately. Actually, it can help, but in an indirect way rather than directly, since credit reports just do not inform about bank accounts. Your savings history has no direct influence on your credit score. Why is it so? Just because your credit report is focused on your debt, not your general financial situation. These are credit cards, loans or any other registered borrowed money, which decide on your credit report performance. Your investments and savings, and even your income, are not important when it comes to your credit score.
Why do some banks suggest that opening an account with them will help your credit score?
It is not a lie or a common sales talk to allure more unaware clients. As it was mentioned above, it can help, but only indirectly. It simply means that lenders, like credit card companies, will be more open to making any business with you when your bank accounts present you as a good financial manager. When you look more reliable, you have bigger chances to receive credit. Looking from this point of view, we can assume that creating a good account and then using it in a sensible way, really can help you built your better credit score in some way.