Cancelling a credit card seems like a simple task, but doing it wrong can leave you with unexpected fees, recurring payments that keep running, or an outstanding debt you discover months later.
Step 1: settle the outstanding balance in full
Before requesting cancellation, make sure there's no outstanding balance left, including recent purchases that haven't yet been settled in the current billing cycle. If you have active deferred financing on previous purchases (revolving or another type), you must also pay off that outstanding debt before the card can be definitively cancelled.
Step 2: review and cancel the associated recurring payments
It's common to have recurring payments for subscriptions, online services, or insurance charged to your card. Before cancelling it, review the transaction history from recent months to identify all these recurring charges and cancel them or switch them to another payment method, avoiding a failed charge attempt on an already-cancelled card causing problems with those services.
Step 3: formally request the cancellation
Contact your bank (by phone, online banking, or in person) and expressly request the card's cancellation, not just stop using it. A card you simply stop using, without formally cancelling it, can keep generating maintenance or issuance fees as long as it hasn't been expressly cancelled.
Step 4: request written confirmation
Always ask for written confirmation (an email or downloadable document from online banking) that the cancellation has been completed, with an effective date. This confirmation is your proof in case, months later, an improper charge appears on a card that should already be cancelled.
Physically destroy the card
Although it may seem like a minor gesture, physically destroying the card (cutting it in a way that disables the chip and magnetic stripe) prevents the risk of later fraudulent use, especially relevant if you're going to throw it away without further precautions.
How cancellation affects your credit history
Cancelling a credit card generally doesn't harm your credit history if done properly and with no outstanding debt. What can harm it is a cancellation with associated unpaid debt, which could be reflected in default files if the debt isn't settled.
Check whether it's worth keeping financing available
If you kept the card to have an occasional credit line available, weigh up whether it's better to keep a line available with low maintenance cost or cancel it and, if a specific need arises, turn to a personal loan with better terms. Our personal loan calculator helps you compare that alternative.