Are there any restriction or penalties when cancelling credit cards?

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Are there any restrictions or penalties in place if we were to apply for a reward credit card, make the minimum spend to get the bonus points on offer then cancel the cards after 90 days?

I’m mindful to not carry around too many dormant credit cards and would be more comfortable cancelling any I’m no longer actively using.

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Be sure to get written confirmation of account closure, verbal is not good enough should you be hit for the annual fee sometime in the future.

Also bear in mind that even if you have a good credit rating, applying for a multitude of new cards (as us points collectors often do) in a short time span could result in a decline simply because of the number of credit applications!

I don’t cancel my dormant cards until the month before the renewal anniversary and always request written confirmation of account closure. If you don’t wish to keep the dormant cards, cut them up.

  • BTW if there are penalties, they would have to be stated in the PDS

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Good Response
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nope, just make sure your points have posted and you have redeemed all offers on the card then close it.

Some will even give a partial refund on the fee since you didn’t keep it for a year.

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Thanks all!

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