cancel-credit-card250x250

Is it difficult to cancel a credit card?

Cancelling your credit card isn't hard, but you can follow these steps to make it even easier.

Whether you've paid your balance and want to get rid of your credit card, want to move a debt to a 0% balance transfer card or are looking to upgrade, there are plenty of reasons why you may want to cancel your credit card. Cancelling your credit card isn't difficult, but there are a few steps that you'll need to make sure you do properly to keep your credit score intact. You can use this guide to learn the steps you'll need to take to close your credit card account and get your finances in order.

How to cancel your credit card in five simple steps

Cancelling your credit card isn't as simple as cutting up your card. These are the steps you should follow to close your account:

1. Pay off or move your outstanding balance

Before you can close your card, you need to pay off your account in full, so you'll need to pay off your balance (and any interest owed) before you ask the bank to close the account. You should keep in mind that you'll also have to pay off any debts that are coming from direct debits. If you try to close your credit card with an outstanding balance, the bank may refuse, increase the interest rate or demand full and immediate payment.

If you want to cancel your card because you're struggling to repay a debt that's collecting interest, you can move it to a card with 0% on balance transfers to pay it off without interest for a promotional period. Not only will you save on interest costs, but you may also pay down your debt faster.

2. Move direct debits and reward points

If you have any direct debits linked to your account (such as phone bills or rental payments), you will need to cancel these or move them to another account before you close your account. Otherwise, you may not be able to close your account if a direct debit has come out and added to your debt or you could default on a payment if it's connected to a cancelled card. Direct debits can sometimes reactivate a cancelled card, so it's best to do this before you even ask the bank to close the card.

If you have a rewards credit card, you should also spend or move your reward points before you cancel your card. If you have a frequent flyer credit card that's linked to an external program, such as Qantas Frequent Flyer or Velocity, you shouldn't have to do anything with your points. But if it's linked to a bank rewards program such as ANZ Rewards or St.George Amplify, you should either redeem your points for rewards or try to move them to a partnered program (usually a frequent flyer program or hotel loyalty scheme). If you don't and you cancel your card, you won't be able to spend your rewards and they'll go to waste. You can read our guide to transferring credit card rewards points to frequent flyer points for some tips.

3. Call to cancel your card

Once you've paid your balance, you can contact your bank or card provider to cancel your card. When you make the call, you may be transferred to a customer service representative whose job it is to retain customers. They may offer you a lower annual fee, reduced interest rates or bonus points, but if you're determined to close your account, you shouldn't be swayed by these offers. Instead, you should insist that you want to close your account.

You'll usually need to confirm your identity to close your account, and some banks may require that you send a written request or visit a bank branch. If you can cancel your card over the phone, make a record of the date, time and name of the representative you spoke with in case you need to chase up the account closure.

You can find a list of the Australian bank customer service numbers you can call to cancel your card on finder.

4. Check for future statements and confirm the cancellation

Once you've received confirmation that your card is closed, you should try to log into your account or go through your credit card statements following the request to ensure that it has indeed been closed. If it hasn't, you can contact the lender again and request that it be closed immediately.

5. Cut up your card

Once you're sure that your card is closed, you can cut up your card. Although the card won't be of much use if the account is closed, it's wise to cut it into as many pieces as possible and discard them in a few different places (such as in the bin at home, at work and in public areas).

Closing your credit card can be a simple process as long you know the steps to follow. If you've closed your card and are in the market for a new and competitive offer, you can start comparing your options below.

Compare other credit card deals

Rates last updated July 17th, 2018
Name Product Purchase rate (p.a.) Balance transfer rate (p.a.) Annual fee Product Description
Westpac Low Rate Card
13.49% p.a.
0% p.a. for 24 months with 1% balance transfer fee
$0 p.a. annual fee for the first year ($59 p.a. thereafter)
$0 First Year Annual Fee & Balance Transfer Offer*
Offers a 0% for 24 month balance transfer option, first year annual fee waiver and a competitive purchase rate.
Citi Clear Platinum - Exclusive Offer
14.99% p.a.
0% p.a. for 24 months with 1.5% balance transfer fee
$49 p.a. annual fee for the first year ($99 p.a. thereafter)
Reduced First Year Annual Fee & Balance Transfer Offer*
finder Exclusive: Receive 0% p.a. for 24 months on balance transfers and a discounted annual fee in the first year. Plus, access to Citi World Privileges.
NAB Low Fee Platinum Card - Exclusive Amazon Offer
19.74% p.a.
0% p.a. for 24 months with 2% balance transfer fee
$90 p.a.
Cashback & Balance Transfer Offer*
finder Exclusive: Take advantage of 10% cashback with amazon.com.au for 12 months (capped at $25 per month).
American Express Westpac Altitude Platinum Bundle - Exclusive Offer
20.24% p.a.
$0 p.a. annual fee for the first year ($199 p.a. thereafter)
$0 First Year Annual Fee and Bonus Points Offer*
$0 first year annual fee & up to 90,000 bonus Altitude Pts when you meet T&C with this Visa (issued by Westpac) & Amex (issued & serviced by Amex).
Virgin Australia Velocity Flyer Card - 0% Interest Offer
0% p.a. for 14 months (reverts to 20.74% p.a.)
0% p.a. for 6 months
$129 p.a.
Introductory Purchase Rate Offer*
Buy now and pay later with 0% p.a. interest on purchases for 14 months. Plus, 0% p.a. on balance transfers for up to 6 months.
Qantas Premier Everyday
19.99% p.a.
4.9% p.a. for 24 months
$0 p.a. annual fee for the first year ($49 p.a. thereafter)
$0 First Year Annual Fee & Bonus Points Offer
Take advantage of up to 40,000 bonus Qantas Points, a $0 first year annual fee plus complimentary overseas travel insurance.
Suncorp Clear Options Platinum Credit Card - Exclusive Offer
20.74% p.a.
0% p.a. for 18 months
$99 p.a. annual fee for the first year ($129 p.a. thereafter)
Exclusive Balance Transfer Card Offer*
finder Exclusive: Receive a long 18-month, 0% p.a., no fee balance transfer and earn Suncorp Rewards Points or Qantas Points per $1 spent.
Citi Simplicity Card
19.99% p.a.
0% p.a. for 15 months with 1.5% balance transfer fee
$0 p.a.
Low Intro Balance Transfer Interest Rate with No Annual Fee
Save with 5% cashback on eligible purchases (capped at $50 per month) for the first 90 days from approval. Plus, a 15 month balance transfer offer.
Virgin Australia Velocity Flyer Card - Bonus Points Offer
20.74% p.a.
0% p.a. for 18 months
$64 p.a. annual fee for the first year ($129 p.a. thereafter)
Up to 60,000 bonus Velocity Points Offer*
Earn up to 60,000 bonus Velocity Points in the first 3 months and enjoy a discounted annual fee of $64 for the first year.
Citi Rewards Platinum Credit Card
20.99% p.a.
0% p.a. for 26 months with 2.5% balance transfer fee
$49 p.a. annual fee for the first year ($149 p.a. thereafter)
0% p.a. for 26 months Balance Transfer Offer*
Earn reward Points per $1 spent, take advantage of a 0% p.a. for 26 month balance transfer offer, plus complimentary international travel insurance.
St.George Vertigo Platinum - Online Offer
12.74% p.a.
0% p.a. for 24 months with 1% balance transfer fee
$0 p.a. annual fee for the first year ($99 p.a. thereafter)
$0 First Year Annual Fee & Balance Transfer Offer
Platinum card benefits including complimentary insurance, plus first year annual fee waiver and 0% p.a. for 24 months on balance transfers.
ANZ First Visa Credit Card
19.74% p.a.
0% p.a. for 18 months with 2% balance transfer fee
$30 p.a.
Low Annual Fee and up to 44 days interest-free
Get up to 18 months interest-free on balance transfers and save with a low $30 annual fee. Plus, up to 44 days interest-free on purchases.
Virgin Money Low Rate Credit Card
11.99% p.a.
0% p.a. for 14 months
$49 p.a.
Low Purchase Rate & Balance Transfer Offer*
Offers a $49 annual fee, up to $100 cashback when you make a purchase within 3 months and 0% p.a. for 14 months on balance transfers.
HSBC Platinum Credit Card
19.99% p.a.
0% p.a. for 22 months with 2% balance transfer fee
$0 p.a. annual fee for the first year ($129 p.a. thereafter)
$0 First Year Annual Fee & Balance Transfer Offer*
Offers a 0% p.a. for 22 months balance transfer, $0 annual fee for the first year and an annual fee refund each year when you spend $6,000.
Westpac Altitude Platinum Card - Qantas
20.24% p.a.
$50 p.a. annual fee for the first year ($150 p.a. thereafter)
Bonus Points and Annual Fee Offer*
Earn 60,000 bonus Qantas Points when you spend $3,000 within 90 days of card approval. Plus, a $50 first year annual fee.
American Express Westpac Altitude Platinum Bundle - Qantas
20.24% p.a.
$50 p.a. annual fee for the first year ($249 p.a. thereafter)
Reduced First Year Annual Fee and Bonus Points Offer*
Up to 90,000 bonus Qantas Points when you meet the criteria with this dual Visa (issued & serviced by Westpac) & Amex (issued & serviced by Amex).
HSBC Low Rate Credit Card
13.25% p.a.
0% p.a. for 20 months with 2% balance transfer fee
$79 p.a.
Long-term Balance Transfer Offer*
Receive up to 20 months interest-free on balance transfers with a 2% BT fee. Also enjoy exclusive offers with the home&Away Privilege Program.
NAB Low Fee Card
19.74% p.a.
0% p.a. for 18 months with 2% balance transfer fee
$30 p.a.
Low Annual Fee & Balance Transfer Offer
Receive complimentary purchase protection insurance, a 18 month balance transfer offer and special offers from Visa Entertainment.
HSBC Platinum Qantas Credit Card
19.99% p.a.
0% p.a. for 12 months
$199 p.a.
Bonus Points & Balance Transfer Offer*
Receive 60,000 bonus Qantas Points when you spend $3,000 within 3 months of card approval, plus enjoy complimentary travel insurance.

Compare up to 4 providers

Was this content helpful to you? No  Yes

Related Posts

Credit Card Offers

Important Information*
Westpac Low Rate Card
Westpac Low Rate Card

Interest rate

13.49

Annual fee

59
Qantas Premier Everyday
Qantas Premier Everyday

Interest rate

19.99

Annual fee

49

Ask an Expert

You are about to post a question on finder.com.au:

  • Do not enter personal information (eg. surname, phone number, bank details) as your question will be made public
  • finder.com.au is a financial comparison and information service, not a bank or product provider
  • We cannot provide you with personal advice or recommendations
  • Your answer might already be waiting – check previous questions below to see if yours has already been asked

Finder only provides general advice and factual information, so consider your own circumstances, or seek advice before you decide to act on our content. By submitting a question, you're accepting our Terms and Conditions and Privacy Policy.
Ask a question
Go to site