You may want to cancel your card to cut back on spending. Or you may have lost it or decided you’re not getting enough value from it.
These steps guide you through the process of cancelling your card.
1. Pay off your credit card in full
Your balance must be $0 before you can cancel your credit card. So the first step is to pay off your credit card in full, including any interest or fees.
Talk to your bank or credit provider. See if you can pay off and cancel the card immediately online, over the phone or at a branch.
Contact your bank or credit provider straight away. Or talk to a free financial counsellor. Taking action early stops a small money problem from getting bigger.
Consider the pros and cons to make sure a credit card balance transfer is the right move for you. If you’ve transferred your balance before, doing this again may affect your credit score.
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.
2. Cancel direct debits
If you have direct debits or regular payments, cancel them online or ask your credit provider to do it. Check your credit card account to make sure those payments have stopped.
Check your agreement or talk to the service provider before changing your payments.
Don’t forget to set up new payments from another account so you don’t get behind.
3. Cancel your card and get confirmation
Log in to your account and follow the instructions.
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.
Make sure you:
- Make a note of the date and time you called, and the name of the person you spoke to.
- Follow up with a letter or email confirming your request. Include your account details and who and when you called.
Once your card has been cancelled, your credit card account will be closed. Your credit provider will send you confirmation and a final statement. If you don’t get this within a couple of weeks, follow up with them.
4. Ask for a refund if in credit
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.
5. Cut up your card
The last thing to do is to destroy your credit card. Cut it up or shred it so it can’t be used by anyone again.
Original Link：https://moneysmart.gov.au/credit-cards/cancel-a-credit-card
