Will cancelling a credit card affect my credit score?

Your credit score is based on the details listed on your credit file, which includes information about active and closed accounts. This means any change to your credit file, including cancelling a card, could affect your credit score.

But because this is just one part of your credit file, the impact it has (or doesn't have) on your credit score also depends on other details listed on your file. So before you go ahead and cancel your credit card, let's take a look at three ways it could help or hurt your credit score.

3 ways cancelling a credit card could improve your credit score

In general, your credit score is improved when you reduce some of the potential risks for lenders. So, if cancelling a credit card leads to any of the following changes, it could have a positive impact on your score:

• If it gets rid of a high credit limit. Having access to a lot of credit can hurt your credit score because it increases the risk that any new lenders would face if you applied for another card or loan. By cancelling your credit card, you'll reduce this risk, which could also improve your credit score.
• If it shows you've settled outstanding payments. Before you can close a credit card account, you'll need to make sure the balance is cleared. So, if you have previously had late payments or defaults recorded on this account, closing it could show you're taking control of your debts.
• If it helps you make other payments on time. Once you've closed your credit card account, you'll have one less bill to think about each month. If this makes it easier to deal with other accounts, it could improve your payment history and your credit score.

Check out more ways to improve your credit score

3 ways cancelling a credit card could hurt your credit score

If your credit history also shows you've recently made some late payments or have defaulted on accounts, cancelling your card might hurt your score or leave it unchanged.

• If you have a lot of recent applications. Applying for a lot of credit cards (or other credit accounts) over a few months increases the level of risk for your existing and potential lenders. It may suggest that you're struggling with debt or that you're jumping from one credit card to another in order to take advantage of introductory offers. While there's not technically anything wrong with that, credit card companies do frown on this type of behaviour.
• If it was your only credit account. Cancelling a credit card when you don't have any other loans or credit accounts limits the amount of information you'll have on your credit file. That means your credit score could drop or remain unchanged until you apply for a new card.
• If making payments on your other accounts is still a challenge. While cancelling a credit card could be a step in the right direction, you may still find that it's difficult to make payments on your other accounts. This could lead to more late payments or defaults that lower your credit score. If you need help dealing with your credit accounts, you can get free support by calling Financial Counselling Australia on 1800 007 007 between 9:30am and 4:30pm Monday to Friday (AEST).

Other financial help services and options

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Does cancelling a credit card always have an impact on credit scores?

Getting rid of a credit card doesn't always have an impact on your credit score. For example, if you've just got a new credit card and then closed the old one (or vice versa), it may not change your overall score.

It's also important to keep in mind that your credit score can fluctuate as more details are added to your credit file. So even if cancelling a credit card does affect your credit score in the short term, how you manage your accounts over time will play a greater role when it comes to getting approved for the cards and loans you want in the future.

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Name	Product	Purchase rate	Interest-free period	Annual fee	Balance transfer rate
Kogan Money Black Card - Exclusive Offer Exclusive		20.99% p.a.	Up to 55 days on purchases	$0	0% p.a. for 22 months	0% Balance Transfer Offer & $50 Kogan.com Credit Save with a $0 annual fee and a 0% introductory rate on balance transfers. Plus, earn $50 Kogan.com Credit and uncapped rewards points.	Go to site More Info	Compare	loading Fetching your data...
St.George Vertigo Card		13.99% p.a.	Up to 55 days on purchases	$0 annual fee for the first year ($55 p.a. thereafter)	0% p.a. for 30 months	0% Balance Transfer Offer & $0 First Year Annual Fee Save with a 0% interest rate on balance transfers for 30 months (with no balance transfer fee) and a $0 annual fee for the first year.	Go to site More Info	Compare	loading Fetching your data...
NAB Qantas Rewards Signature Card		19.99% p.a.	Up to 44 days on purchases	$295 annual fee for the first year ($395 p.a. thereafter)	0% p.a. for 6 months with 2% balance transfer fee	Up to 110,000 bonus Qantas Points & First-Year Annual Fee Discount Earn up to 110,000 bonus Qantas Points (90,000 when you spend $3,000 in the first 60 days and 20k after 12 months).	Go to site More Info	Compare	loading Fetching your data...
HSBC Platinum Credit Card		19.99% p.a.	Up to 55 days on purchases	$29 annual fee for the first year ($129 p.a. thereafter)	0% p.a. for 36 months	0% Balance Transfer Offer & $29 First-Year Annual Fee Save money with a 0% balance transfer rate for 36 months (with no BT fee), a first-year annual fee discount and free travel insurance.	Go to site More Info	Compare	loading Fetching your data...
NAB Low Rate Credit Card		12.99% p.a.	Up to 55 days on purchases	$0 annual fee for the first year ($59 p.a. thereafter)	0% p.a. for 32 months	0% Balance Transfer Offer & $0 First-Year Annual Fee Get a 0% interest rate on balance transfers for the first 32 months (with no BT fee). Plus, save with a $0 first-year annual fee.	Go to site More Info	Compare	loading Fetching your data...
Qantas Premier Platinum		19.99% p.a.	Up to 55 days on purchases	$225 annual fee for the first year ($299 p.a. thereafter)	0% p.a. for 18 months with 1% balance transfer fee	80,000 Bonus Points & 80 bonus Status Credits Earn 80,000 bonus Qantas Points when you spend $4,000 in the first 3 months, 80 bonus Status Credits on eligible spend and a reduced first-year annual fee.	Go to site More Info	Compare	loading Fetching your data...
Citi Clear Card - Exclusive Offer Exclusive		14.99% p.a.	Up to 55 days on purchases	$49 annual fee for the first year ($99 p.a. thereafter)	0% p.a. for 28 months	0% Balance Transfer Offer & First-Year Annual Fee Discount Offers 0% p.a. on balance transfers for 28 months with no balance transfer fee and a discounted $49 first-year annual fee.	Go to site More Info	Compare	loading Fetching your data...
St.George Amplify Signature - Qantas		19.74% p.a.	Up to 55 days on purchases	$279	0% p.a. for 15 months with 1% balance transfer fee	Balance Transfer Offer & 90,000 Bonus Points Get 90,000 bonus Qantas Points when you spend $6,000 using your new card within 90 days from approval and 2 Qantas Club lounge invitations per year.	Go to site More Info	Compare	loading Fetching your data...
ANZ Low Rate		12.49% p.a.	Up to 55 days on purchases	$0 annual fee for the first year ($58 p.a. thereafter)	0% p.a. for 30 months	0% Balance Transfer Offer & $0 First-Year Annual Fee Save with 0% p.a. on balance transfers for 30 months (with no BT fee) and $0 first-year annual fee. Plus a 12.49% p.a. purchase interest rate.	Go to site More Info	Compare	loading Fetching your data...
Suncorp Clear Options Platinum Card - Exclusive Offer Exclusive		20.74% p.a.	Up to 55 days on purchases	$64 annual fee for the first year ($129 p.a. thereafter)	0% p.a. for 24 months	0% Balance Transfer Offer & 25,000 Bonus Points Receive a 0% balance transfer rate for 24 months and a reduced first-year annual fee. Plus, 25,000 bonus Suncorp Credit Card Rewards Points.	Go to site More Info	Compare	loading Fetching your data...
Bankwest Breeze Classic Mastercard		0% p.a. for 15 months, reverts to 9.9% p.a.	Up to 55 days on purchases	$0 annual fee for the first year ($49 p.a. thereafter)	0% p.a. for 15 months	0% Purchase Rate & Balance Transfer Offers Save with 0% p.a. on purchases and balance transfers for 15 months (with no BT fee). Plus, a $0 first-year annual fee.	Go to site More Info	Compare	loading Fetching your data...
Citi Premier Qantas Card		21.49% p.a.	Up to 55 days on purchases	$175 annual fee for the first year ($350 p.a. thereafter)	0% p.a. for 6 months	75,000 Bonus Qantas Points & First-Year Annual Fee Discount Get 75,000 bonus Qantas Points when you meet the spend requirement, a first-year annual fee discount and complimentary travel perks.	Go to site More Info	Compare	loading Fetching your data...
Westpac Low Rate Card		13.74% p.a.	Up to 55 days on purchases	$0 annual fee for the first year ($59 p.a. thereafter)	0% p.a. for 28 months with 1% balance transfer fee	$0 First-Year Annual Fee & 0% Balance Transfer Offer Save with a $0 annual fee for the first year, plus, a 0% interest rate on balance transfers for 28 months.	Go to site More Info	Compare	loading Fetching your data...
Citi Rewards Card - Points & Gift Card Offer		21.49% p.a.	Up to 55 days on purchases	$49 annual fee for the first year ($149 p.a. thereafter)	0% p.a. for 15 months	90,000 Citi Rewards Points and $100 Coles eGift Card Receive 90,000 bonus Citi reward Points (worth $400 in gift cards) and a $100 Coles eGift Card when you spend $3,000 in the first 90 days.	Go to site More Info	Compare	loading Fetching your data...
Virgin Australia Velocity Flyer Card - Balance Transfer Offer		20.74% p.a.	Up to 55 days on purchases	$64 annual fee for the first year ($129 p.a. thereafter)	0% p.a. for 28 months	$129 Gift Voucher & Balance Transfer Offer Get 0% p.a. on balance transfers for 28 months, a reduced 1st year annual fee & $129 Virgin Australia Gift Voucher yearly.	Go to site More Info	Compare	loading Fetching your data...
Bankwest Zero Platinum Mastercard Finder Award		14.99% p.a.	Up to 55 days on purchases	$0	0% p.a. for 26 months with 2% balance transfer fee	No Annual Fee & 0% Balance Transfer Offer Get 0% p.a. on balance transfers for 26 months (with a 2% BT fee), ​an ongoing $0 annual fee and 0% foreign transaction fees.	Go to site More Info	Compare	loading Fetching your data...
Coles No Annual Fee Mastercard Finder Award		19.99% p.a.	Up to 55 days on purchases	$0	0% p.a. for 12 months	$100 off a Coles Supermarket shop & 0% Balance Transfer Offer Get $100 off a Coles Supermarket shop when you spend at least $1,500 in the first 60 days. Plus, a 0% balance transfer offer.	Go to site More Info	Compare	loading Fetching your data...
Bendigo Bank Low Rate Credit Card		0% p.a. for 12 months, reverts to 11.99% p.a.	Up to 55 days on purchases	$45	0% p.a. for 12 months with 2% balance transfer fee	0% Purchase Rate & Balance Transfer Offers Save with 0% p.a. on purchases and balance transfers for 12 months (with a 2% BT fee).	Go to site More Info	Compare	loading Fetching your data...
Citi Rewards Card - Balance Transfer Offer		21.49% p.a.	Up to 55 days on purchases	$49 annual fee for the first year ($149 p.a. thereafter)	0% p.a. for 30 months	30-Month Balance Transfer & Annual Fee Discount Save on interest with 0% p.a. on balance transfers for 30 months with no balance transfer fee. Plus, a $49 first-year annual fee.	Go to site More Info	Compare	loading Fetching your data...
St.George Vertigo Card - Cashback Offer		13.99% p.a.	Up to 55 days on purchases	$0 annual fee for the first year ($55 p.a. thereafter)	6.99% p.a. for 12 months	Get $300 cashback when you spend at least $4,000 in the first 120 days. Plus, a $0 annual fee for the first year.	Go to site More Info	Compare	loading Fetching your data...
Citi Clear Card		14.99% p.a.	Up to 55 days on purchases	$49 annual fee for the first year ($99 p.a. thereafter)	0% p.a. for 15 months	$250 Cashback & 0% Balance Transfer Offers Get $250 cashback when you spend $3,000 within the first 90 days. Plus, a 0% balance transfer offer and first-year annual fee discount.	Go to site More Info	Compare	loading Fetching your data...
Coles Rewards Mastercard		19.99% p.a.	Up to 55 days on purchases	$0 annual fee for the first year ($99 p.a. thereafter)	0% p.a. for 14 months	40,000 Bonus Flybuys Points & $0 First-Year Annual Fee Get 40,000 bonus Flybuys Points or $200 off a Coles Supermarket shop, a $0 first-year annual fee and a 14-month balance transfer.	Go to site More Info	Compare	loading Fetching your data...
Bank of Melbourne Vertigo Card - Cashback Offer		13.99% p.a.	Up to 55 days on purchases	$0 annual fee for the first year ($55 p.a. thereafter)	6.99% p.a. for 12 months	Offers a $300 cashback when you spend $4,000 on eligible purchases within the first 120 days. Plus, a $0 first-year annual fee.	Go to site More Info	Compare	loading Fetching your data...
BankSA Vertigo - Cashback Offer		13.99% p.a.	Up to 55 days on purchases	$0 annual fee for the first year ($55 p.a. thereafter)	6.99% p.a. for 12 months	Earn $300 cashback when you spend at least $4,000 in the first 120 days. Plus, a $0 first-year annual fee.	Go to site More Info	Compare	loading Fetching your data...
ANZ Platinum Credit Card		0% p.a. for 17 months, reverts to 20.24% p.a.	Up to 55 days on purchases	$0 annual fee for the first year ($87 p.a. thereafter)	20.24% p.a.	0% Purchase Offer & $0 First Year Annual Fee Receive a 0% purchase rate offer for 17 months and a $0 first-year annual fee. Plus, complimentary overseas travel and medical insurance.	Go to site More Info	Compare	loading Fetching your data...
St.George Amplify Platinum - Qantas		19.74% p.a.	Up to 55 days on purchases	$99	0% p.a. for 15 months with 1% balance transfer fee	Balance Transfer Offer & 60,000 Bonus Points Earn 60,000 bonus Qantas Points, plus enjoy 0% p.a. on balance transfers for 15 months with a 1% BT fee.	Go to site More Info	Compare	loading Fetching your data...
MoneyMe Freestyle Virtual Mastercard		16.99% p.a.	Up to 55 days on purchases	$0		Approval within minutes Get approved quickly online and start using your card right away. Plus, the ability to transfer money to a bank account.	Go to site More Info	Compare	loading Fetching your data...
David Jones American Express Platinum Card		0% p.a. for 6 months, reverts to 20.74% p.a.	Up to 44 days on purchases	$295		70,000 Bonus Membership Rewards Points or 35,000 Qantas Points Earn 70,000 bonus Membership Rewards Points or 35,000 Qantas Points when you spend $1,500 outside DJ in the first 3 months.	Go to site More Info	Compare	loading Fetching your data...
Citi Premier Card		21.49% p.a.	Up to 55 days on purchases	$150 annual fee for the first year ($300 p.a. thereafter)	0% p.a. for 6 months	130,000 bonus Citi Reward Points & First-Year Annual Fee Discount Enjoy 130,000 bonus points (worth $450 in eGift cards) when you spend $4,000 within the first 90 days. Plus, a first-year annual fee discount.	Go to site More Info	Compare	loading Fetching your data...
Westpac Altitude Platinum Qantas		20.49% p.a.	Up to 45 days on purchases	$149 annual fee for the first year ($200 p.a. thereafter)	0% p.a. for 18 months with 1% balance transfer fee	60,000 Bonus Qantas Points & First-Year Annual Fee Discount Get 60,000 bonus Qantas Points when you spend $3,000 within 90 days. Plus, a first-year annual fee discount and a 0% balance transfer offer.	Go to site More Info	Compare	loading Fetching your data...
American Express Cashback Credit Card		20.74% p.a.	Up to 55 days on purchases	$120		Up to 6% cashback Earn 1% cashback per $1 dollar spent on your everyday purchases. Plus, an additional 5% for the first 3 months (up to $200).	Go to site More Info	Compare	loading Fetching your data...
American Express Qantas Business Rewards Card		N/A	Up to 51 days on purchases	$450		150,000 Bonus Points Offer ABN holders w/ $75,000 revenue. Get 150,000 bonus Qantas Points, 2 yearly Qantas Club lounge passes and 3x points on eligible Qantas flights.	Go to site More Info	Compare	loading Fetching your data...
Virgin Australia Velocity Flyer Card - 0% Interest Offer		0% p.a. for 14 months, reverts to 20.74% p.a.	Up to 55 days on purchases	$129	0% p.a. for 14 months	0% Purchase Rate & 0% Balance Transfer Offers Save with 0% p.a. interest on purchases and balance transfers for 14 months and earn Velocity Points per $1 spent.	Go to site More Info	Compare	loading Fetching your data...
Virgin Australia Velocity Flyer Card - Bonus Points Offer		20.74% p.a.	Up to 55 days on purchases	$0 annual fee for the first year ($129 p.a. thereafter)	0% p.a. for 20 months	Up to 40,000 bonus Velocity Points & 0% Balance Transfer Offer Get up to 40,000 bonus Velocity Points on eligible spending and a $0 first-year annual fee. Also, a 0% balance transfer offer.	Go to site More Info	Compare	loading Fetching your data...

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