Do I have credit history after I open a bank account?

[Sharlene]

Aren’t bank accounts reported to the credit bureaus?

[Tracy Winters]

No

So many people are confused about this subject. Having a bank account has nothing to do with credit history.

In order for a person to have a credit history – one needs to use credit. That means using credit cards, taking personal loans, car loans, a mortgage etc.

Products that are not related to credit such as pre-paid credit cards, rental contracts, utility bills, cellular contract etc. do not build credit.

However, once you don’t pay your bills they end up at a collection agency, and then they will negatively affect your credit history even though they aren’t a credit product by themselves.

Hope this clears the subject for you.

[Author]

Posts