Cancelling a credit card takes a call or a letter to the issuer, but a few steps before and after make sure nothing is left behind: rewards, recurring charges and a final balance. This page covers those steps, the alternative of switching to another card from the same issuer, and what closing a card does to your credit. Cancelling is one of the topics in our credit card basics guides.
Before you cancel
- Use or redeem your rewards. Points and cash back are usually lost when the account closes.
- Move recurring payments. Subscriptions, insurance premiums and bills charged to the card need a new payment method; otherwise, the Financial Consumer Agency of Canada (FCAC) warns, “the company will continue to bill you and the charges will build up until you pay them.”
- Pay off the balance, or plan to. FCAC: “Interest charges will continue to apply to any outstanding balance on your accounts even after you closed them.”
- Ask about the annual fee. Some issuers refund part of a recently charged annual fee when you cancel.
- Consider a product switch (below), which can remove a fee without closing the account.
The steps
FCAC sets out three:
- Contact the issuer. “Contact your credit card issuer by phone or in writing and ask to cancel your account.” The customer service number is on the card, your statement and the issuer’s website. FCAC adds: “Ask for confirmation in writing that they closed your account.” Once you have it, destroy the card and keep the confirmation.
- Check your statements after closing. Transactions approved before you closed the account, and recurring charges you didn’t move, can still appear.
- Check your credit report to confirm the account shows as closed. FCAC says the issuer needs time to report the change, which “usually takes about 30 days.” Checking your credit report for free lists the ways to get it.
Some things don’t cancel a card. FCAC lists “cutting up your card letting it expire not using it.” Contact details for each major bank are in our bank support guides.
Switching instead of cancelling
If the reason to cancel is the annual fee, most issuers let you move to another card in their lineup, often a no-fee card, without closing the account. A product switch can keep the account open and its limit in place, which avoids the credit effects of closing; whether the account’s history and number carry over depends on the issuer, so it’s worth asking when you call. Switches are usually limited to the same issuer’s cards. Our no annual fee card picks show the no-fee options.
What closing a card does to your credit
Closing a card removes its limit from your total available credit, which raises your credit utilization on any balances you carry elsewhere, and a closed account eventually drops off your report, which can shorten your history. Both effects, and when closing matters little, are covered in does closing a credit card hurt your credit score.
Special cases
- A card that was lost, stolen or compromised is usually replaced with a new number rather than cancelled; call the issuer’s lost or stolen line.
- A joint card or an additional cardholder. Removing an authorized user can usually be done without closing the account, while closing a joint account follows the rules in its cardholder agreement; authorized user vs joint credit card explains the difference.
- A card belonging to someone who has died is closed by the estate; what happens to debt when you die covers the balance.
- Inactive cards. FCAC notes some issuers charge an inactive account fee and may close a card that’s been unused for a year, which is another reason to decide deliberately rather than let a card lapse.