{"id":4271,"date":"2026-10-08T07:19:10","date_gmt":"2026-10-08T11:19:10","guid":{"rendered":"https:\/\/www.greatcanadianrebates.ca\/finance-tools\/2026\/10\/08\/how-to-cancel-a-credit-card-in-canada\/"},"modified":"2026-10-08T07:19:10","modified_gmt":"2026-10-08T11:19:10","slug":"how-to-cancel-a-credit-card-in-canada","status":"publish","type":"post","link":"https:\/\/www.greatcanadianrebates.ca\/finance-tools\/2026\/10\/08\/how-to-cancel-a-credit-card-in-canada\/","title":{"rendered":"How to Cancel a Credit Card in Canada"},"content":{"rendered":"\n

Sometimes a card no longer fits your life. Maybe the annual fee feels too high, or you have more cards than you need. Before you cancel a credit card, though, a little planning can protect your rewards and your credit. This guide walks you through each step in Canada.<\/p>\n\n\n\n

When Cancelling a Card Makes Sense<\/h2>\n\n\n\n

Closing a card can be a smart move. For example, you might pay a fee for perks you no longer use. Or an extra card may tempt you to overspend.<\/p>\n\n\n\n

Other common reasons include simplifying your finances or replacing a card with one that suits your spending better.<\/p>\n\n\n\n

On the other hand, closing a card isn\u2019t always the best choice, especially if it has no annual fee.<\/p>\n\n\n\n

Redeem Your Rewards First<\/h2>\n\n\n\n

Points and cash back are usually tied to your account. As a result, closing the card can put them at risk.<\/p>\n\n\n\n

Rules vary by issuer. For instance, Capital One\u2019s terms say you lose unredeemed cash rewards if your account is closed. By contrast, CIBC\u2019s Aventura terms give you 60 days after you close your account to redeem points, with fewer reward choices.<\/p>\n\n\n\n

So check your program\u2019s terms before you cancel a credit card that still holds points. Then redeem them while the account is open and in good standing.<\/p>\n\n\n\n

\"Young<\/figure>\n\n\n\n

Pay Off the Balance<\/h2>\n\n\n\n

Closing your account doesn\u2019t erase what you owe. You still need to repay the full balance.<\/p>\n\n\n\n

In fact, the Financial Consumer Agency of Canada (FCAC) notes that interest still applies to an unpaid balance after closing. So it\u2019s best to pay the card down to zero first.<\/p>\n\n\n\n

If you can\u2019t pay it all at once, keep making at least the minimum payment on time. According to FCAC, payment history is the most important part of your credit score.<\/p>\n\n\n\n

How Closing a Card Can Affect Your Credit<\/h2>\n\n\n\n

Before you cancel a credit card, think about your credit score. The effect depends on your whole credit picture. However, two factors matter most.<\/p>\n\n\n\n

First, there\u2019s your credit utilization rate. This compares how much credit you use with your total credit limit. When you close a card, you lose its limit. As a result, the same spending takes up a bigger share of your remaining credit.<\/p>\n\n\n\n

Second, there\u2019s the length of your credit history. FCAC says lenders want to see a long and stable credit history. Closing an older account can mean losing some of that history.<\/p>\n\n\n\n

For these reasons, FCAC suggests keeping an account open if it has no annual fee and is easy to manage. This matters most when the card is one of your oldest.<\/p>\n\n\n\n

Consider a No-Fee Downgrade Instead<\/h2>\n\n\n\n

If the fee is the main problem, you may not need to close the account. Instead, ask your issuer about switching to a no-fee card.<\/p>\n\n\n\n

Before you switch, ask what happens to your rewards. For example, CIBC\u2019s Aventura terms set a 60-day redemption deadline when a card is converted, unless CIBC advises otherwise.<\/p>\n\n\n\n

To see what a no-fee option looks like, consider the Scotia Momentum No-Fee Visa card<\/a>. It currently has no annual fee and earns up to 1% cash back on eligible everyday purchases. If you hold a Scotiabank card with a fee, you could ask whether a switch is possible.<\/p>\n\n\n\n

Would you rather open a new no-fee card? Great Canadian Rebates lists a Scotia Momentum No-Fee Visa cash back rebate<\/a> for approved applications started through its link. Read the conditions first, because repeat cardholders of the same card don\u2019t qualify.<\/p>\n\n\n\n

Move Your Recurring Payments<\/h2>\n\n\n\n

Pre-authorized payments are easy to forget. Think of streaming services, gym memberships, phone bills, and insurance premiums.<\/p>\n\n\n\n

FCAC warns that recurring charges can still appear after you cancel. If you don\u2019t update them, the company may keep billing you, and those charges build up until you pay them.<\/p>\n\n\n\n

To avoid surprises, go through a few recent statements. Next, list every recurring charge. Then contact each company to switch to another card or payment method, or to cancel the service.<\/p>\n\n\n\n

\"Couple<\/figure>\n\n\n\n

How to Cancel a Credit Card, Step by Step<\/h2>\n\n\n\n

Once you\u2019re ready, the process itself is simple. FCAC\u2019s guide to cancelling your credit card<\/a> lays out the key steps:<\/p>\n\n\n\n