How to Cancel a Credit Card in Australia

By the Aussie Credit Guide editorial team · Reviewed 5 October 2026

Cancelling a credit card takes a few steps in the right order. Do them out of order and you can end up with a declined direct debit, lost points or an account that reopens when a late charge arrives.

The steps

1. Move your direct debits and recurring payments. Subscriptions, insurance, tolls and utilities charged to the card need a new payment method. Moneysmart’s advice is to redirect or stop them first.
2. Redeem your rewards points. Points held in the card provider’s own program are usually lost when the account closes. Points already transferred to an airline program stay with the airline.
3. Pay the balance to $0. The account balance must be zero before the card can be cancelled. Ask for a payout figure, since interest and pending transactions can add to the balance shown.
4. Request the cancellation. You can generally do this in the provider’s app or online banking, or by phone.
5. Get confirmation. You should receive confirmation and a final statement. Keep them.
6. Destroy the card and remove it from phone wallets and saved payment details.

Your right to cancel online

Card providers must give you a way to request cancellation online. Once you ask, they must take reasonable steps to make sure the request is acted on. They can’t require you to speak to a retention team first.

If you can’t pay the balance yet

You can still stop the card being used. Options include asking the provider to block new transactions, lowering the limit to just above the balance, or moving the debt with a balance transfer or personal loan and then closing the account. Interest continues until the balance is cleared.

Annual fees

If you cancel partway through a year, the annual fee is not always refunded. If the fee is about to fall due, cancelling beforehand avoids it. Check the card’s terms.

What it does to your credit report

The account is shown as closed, and its repayment history remains for two years. A closed card no longer counts as an available limit when you apply for other credit. Moneysmart’s caution is about the other direction: applying for cards frequently can flag you as a greater lending risk.

After you cancel

Check the next month’s statement or your online banking. A trailing charge, such as a missed subscription or residual interest, can leave a small balance that goes overdue without your noticing.

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