The Complete Credit Card Cancellation Checklist

Cancelling a credit card the right way is a sequence, not a single phone call. For points collectors, the order matters because rewards on a bank card can vanish as soon as the account closes. Work through the steps below before you cancel to keep your points, avoid surprise charges, and protect your credit file.

Rescue your points before you close anything

This is the step that catches points collectors out. Points earned in a bank rewards program sit with the bank, not with an airline. This includes American Express Membership Rewards, ANZ Rewards, Westpac Altitude Rewards, NAB Rewards, and Amplify Rewards, which is shared by St. George, Bank of Melbourne, and BankSA. When you close the card, those points are generally forfeited.

American Express states in its own terms that Membership Rewards points are forfeited when the account is closed. Most bank programs work the same way, so transfer your points out before cosing the card rather than leaving it until the last minute.

Points you have already transferred into Qantas, Velocity or KrisFlyer are safe. They belong to your frequent flyer account, not to the card itself, so closing the card does not affect them. They only lapse under each program’s own points expiry rules.

Two practical notes before you transfer. Minimum transfer amounts can leave a small balance, so you may need to round a redemption up to clear the account fully. Transfers are not always instant, which matters if you need to close the card to a particular deadline. Our guide to transferring points into Velocity covers the mechanics, and it is worth understanding the timing factors before you rely on a transfer landing the same day.

Clear the balance and reclaim any credit

According to Moneysmart, the account balance must be zero before you can close the card, so pay it off in full, including any interest or fees. If you are partway through a balance transfer, finish that first. If the account is in credit, meaning the provider owes you money, ask for the credit balance to be refunded to another account rather than leaving it behind when the card closes.

Redirect every recurring payment and direct debit

Go through several months of statements and list every recurring charge. This can include subscriptions, utilities, insurance and gym memberships. Redirect each one to another card or account before you close. Otherwise, the payments may decline after closure, and you might face late fees or an interrupted service. The statement review is also a good chance to drop subscriptions you had forgotten you were paying for.

Do not overlook the places a card is stored rather than charged on a fixed date. Digital wallets, app stores and streaming accounts, ride-share and food-delivery apps, and saved profiles with airlines and hotels all keep a card on file. Each payment may fail once the card closes. Updating those before closure saves a string of declined payments later, some of which you may not notice until a service stops.

One important difference is worth knowing. A direct debit from a bank account and a recurring payment charged to a card are treated differently. For a direct debit, your bank must stop the payments when you ask, as Moneysmart sets out in its direct debits guidance. For a recurring payment charged to a card, you generally have to contact the merchant directly. This is because Australian law does not require banks to stop card-based recurring payments, even though some now offer controls in their apps. Either way, sort the payment out before the card closes rather than after.

Use your benefits and time the annual fee

Before you close, extract any value you have already paid for. That can mean using lounge passes, spending an annual travel credit, relying on complimentary insurance for a trip already booked, or taking advantage of a companion benefit one last time. Closing the card means your lose any unused benefits.

Time the closure around the annual fee. If a fee is about to be charged for a year you will not use, closing beforehand avoids it. If you have just paid it, you may prefer to keep the card until you have used the benefits it unlocks. Our criteria-based round-ups of Qantas points-earning credit cards can help you weigh up whether a card still earns its keep before you decide.

Make it official, then check your credit file

Only the primary cardholder can close the account. Call the provider or use secure messaging, verify your identity, and request closure. Note the date, time and the name of the person you spoke to, and follow up in writing. You will receive confirmation and a final statement, and it is worth checking that statement closely, because charges or interest can land after you start the process. Then destroy the card.

If you have additional cardholders on the account, closing the primary card also closes their cards. Make sure to give them notice and check that none of them relies on it for their own recurring payments.

Closing a card is recorded under Comprehensive Credit Reporting (CCR). Under CCR, credit reporting bodies collect and share positive and negative credit information. It changes your total available credit and the average age of your accounts, both of which feed your credit profile. This is rarely a reason to keep a card you do not need, but if you are about to apply for a mortgage or another card, consider the timing before you close the account.

Frequently Asked Questions