Choosing a card
How to Cancel a Credit Card in Canada
Step by step: what to do before you call, how to cancel, what happens to your points and annual fee, and how to protect your credit score when you close a card.
What should I do before cancelling a credit card?
1) Redeem or transfer your points. 2) Move any automatic payments and subscriptions to another card. 3) Pay the balance to zero, including any recent charges. 4) Download statements you may need for taxes or warranties.
Points in a bank’s own rewards program are usually forfeited when the account closes, so redeem first.
Put it into practiceDoes closing a card hurt your credit score?How do I cancel?
Call the number on the back of the card, or use the cancellation option in your bank’s app or online banking if it has one. Ask for written confirmation that the account is closed with a zero balance.
The issuer may offer a retention deal, such as a fee waiver or bonus points. Compare it with what you would get from a new card before deciding.
Will I get my annual fee back?
It depends on the issuer and when you cancel. Some refund the fee if you cancel shortly after it is charged, others do not. Ask when you call, and consider timing the cancellation just before the fee posts.
Will cancelling hurt my credit score?
It can lower your score a little, mainly because you lose that card’s limit and your utilization rises. The closed account stays on your credit report, so its history keeps counting.
Avoid cancelling in the months before a mortgage or loan application, and keep your oldest no-fee card open if you can.
Is a downgrade better than cancelling?
Often. Many issuers let you switch to a no-fee card in the same family. You keep the account open, its limit and history, and stop paying the fee, though you may lose the old card’s perks.
Keep reading
RewardsWhat Happens to Rewards When You Cancel a Credit CardCheck redemption and forfeiture rules before closing an account, and handle recurring payments separately.
Credit scoresDoes Closing a Credit Card Hurt Your Credit Score in Canada?Closing a card can lower your score, mostly because you lose its credit limit and your utilization rises. When it is worth closing anyway, and how to do it without losing rewards.- RewardsHow to Redeem Credit Card Points in CanadaThe same points are worth different amounts depending on how you use them. In the programs we have reviewed, the recorded value ranges from 1 ¢ a point to 0.1 ¢ a point.
Fees and borrowing costsAre Credit Card Annual Fees Worth It in Canada?Compare a card’s extra annual fee with additional usable rewards and benefits, using a Canadian-dollar break-even example.
Official sources and further reading
Terms vary by product. Confirm the provider’s current terms before acting. This guide does not predict approval, realized value or credit-score changes. How WalletReturn calculates value