How to cancel your credit cards
There’s any number of reasons that you might have for wanting to cancel your credit cards. And if this is what you’ve decided to do, it’s a good idea to stop the cards and close the accounts as soon as possible to stop yourself getting into any extra debt.
In this blog, we give you some guidance on how to cancel your credit card or cards. It’s easy, but it’s a good idea to do it right.
Ok, so you’ve made the decision to close your card/s...
How do you go about it?
Even if you’ve got a few credit cards, just cancel one account at a time.
Which of your cards charge the highest fees and interest rates? Cancel these first. Also, as a general rule it’s better to cancel any new cards you’ve got before old ones. You may want to hold onto cards with good rewards programs for the longest.
Try to pay off your balance or transfer it to another credit card company, before you cancel your account.
If your card still has a balance on it when you cancel it, you might still have to pay high fees and interest rates.
Get in touch with your credit card company.
From January 2019, Australian Credit Card companies have to provide customers with an easy way to reduce their credit limits or cancel their credit cards. This is already starting to happen, with most credit cards allowing customers to cancel after logging into their online account.
Going online is the easiest way to cancel your card - if you call to cancel, typically you might be transferred to an agent who might try and persuade you not to cancel. If you do call, remember to stick to the goal of cancelling the card.
Send confirmation in writing.
It’s a good idea to send a letter to the card provider to confirm that you have cancelled your account – this will cover you if there is any confusion.
Keep an eye on your credit card statement.
It might take a while for changes to show on your credit card statement. It’s up to you to check that it’s accurate so make sure you check it.
Cut up your card!
When you know for certain that your account is cancelled, go ahead, cut up your card. This will not only stop any further card usage, it’s also a great feeling of closure! Now that you’ve cancelled your card you can’t be tempted to misuse your credit, you’re at lower risk of identity theft, and you have simplified your accounts.
So now that you know how to cancel your credit card, or cards, you’re ready to make it a reality in an effective and easy way.
Note: Although reducing debt is a smart choice, it’s good to be aware that cancelling a credit card might actually impact your credit score.
General Advice Disclaimer
The information contained on this website is general in nature and does not take into account your personal situation. You should consider whether the information is appropriate to your needs, and where appropriate, seek professional advice from a financial adviser.