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Cancel a credit card

How to cancel your card the right way

Page reading time: 2 minutes

There's more to cancelling a credit card than cutting it up. Follow the steps below to cancel your credit card the right way.

Step 1: Redirect or stop and direct debits

Utilities, rent, car repayments, gym fees - if you have direct debits or regular payments coming out of the credit card that you want to cancel, redirect or stop them before you cancel the card.
It’s a good opportunity to go through several months of transactions. You might even find some subscriptions, memberships, or other regular direct debits you’d forgotten about and no longer need.

Step 2: Redeem any rewards points

If your credit card attracts rewards points, redeem those points before you close it so that you don’t lose them.

Step 3: Pay off your credit card in full

Your credit card account balance will need to be $0 before you can cancel the card. So pay off your credit card in full, including any interest or fees.

If you can pay your card off straight away

You can generally pay your card off immediately via either your banking app or online banking. Otherwise, talk to your bank or credit provider over the phone or at a branch.

If you're finding it hard to pay off your card

Contact your bank or credit provider – they're there to help you. You can also talk to a free financial counsellor. Taking action early helps stop a small money problem from getting bigger.

If you're transferring your balance to another card

Consider the pros and cons to make sure a credit card balance transfer is the right move for you. Each time you apply for credit, it can affect your credit score. If you switch credit cards frequently, this could flag you as a greater lending risk. 

If your card's in more than one name

If your card is in joint names, both cardholders are responsible. Both must agree to pay off the credit card before cancelling it.

If you're the primary cardholder, with someone else as a secondary cardholder, you are responsible for paying the card off before cancelling it.

Step 4: Cancel your card and get confirmation

Cancel online

You can generally log in to your bank’s app or online banking to cancel the card – they’ll have instructions for you to follow.

Cancel over the phone

Call the credit provider and say you want to cancel your credit card.

They'll ask to verify your identity, as only the primary cardholder can close the account.

It's a good idea to:

Step 5. Do a final settlement 

Once your card’s cancelled, the account will be closed. You’ll receive confirmation and a final statement.
Make sure to check the final statement when you get it. There could be a final amount owing if any transactions or interest charges were processed after you started the cancellation.


If you have a credit balance when you close the account, it means the credit provider owes you money. Contact them and ask for a refund. The easiest way is to have that balance transferred to another account.


The last thing to do is to destroy your physical credit card by cutting it up.  Then - you're done!