"Does cancelling a credit card hurt your credit score in Canada?"

"Yes, cancelling a credit card can temporarily lower your credit score. It increases your credit utilisation ratio (less available credit) and can shorten your average credit history length. The impact is typically modest if you have other cards, but it can be more significant if the cancelled card was your oldest account."

"Should I pay off my credit card before cancelling it?"

"Yes. You must pay your full balance before or shortly after cancelling. The card must be at $0 before the issuer will process the cancellation. Any remaining balance continues to accrue interest even after the account is closed."

"Can I cancel a credit card with a negative balance (credit)?"

"Yes, but request a cheque for any credit balance before closing. Some issuers will automatically issue a refund cheque; others require you to ask. A credit balance (money the bank owes you) is not the same as a debt and does not prevent closure."

"What happens to my rewards points when I cancel?"

"It depends on the programme. Aeroplan, Scene+, and PC Optimum points live in your loyalty account (not the credit card) and are unaffected by card cancellation. BMO Rewards, TD Rewards, and CIBC Rewards typically expire when you close the card. Always redeem before cancelling."

"How long does it take to cancel a credit card in Canada?"

"Phone cancellations are processed the same day or within 1–3 business days. You'll receive written confirmation by mail or email. The card appears on your credit report as 'closed' within 30–60 days of cancellation."

How to Cancel a Credit Card in Canada (2026)

Cancelling a credit card in Canada is straightforward, but doing it carelessly can cost you rewards points and temporarily harm your credit score. This guide walks through the process step by step.

Before You Cancel: The Pre-Cancellation Checklist

1. Redeem or transfer your rewards points

This is the most important step. Depending on the programme, unused rewards may be forfeited when you close the card:

Programme	Points Fate at Cancellation
Aeroplan	Safe — points live in your Aeroplan account, not the card
Scene+	Safe — points live in your Scene+ account
PC Optimum	Safe — points live in your PC Optimum account
BMO Rewards	Expire — redeem or lose them
TD Rewards	Expire — redeem or lose them
CIBC Rewards	Expire — redeem or lose them
Amex Membership Rewards	Expire if no other Amex card — transfer first
RBC Avion Rewards	Safe if you hold another RBC Avion card
WestJet Dollars	Safe — live in your WestJet Rewards account

Action: Log in to your card’s rewards portal, redeem or transfer all points, then verify your balance is $0 in rewards before proceeding.

2. Pay your full balance

You cannot close an account with an outstanding balance. Your final statement must be paid in full, including any interest charges. If you cancel before receiving your final statement, contact the issuer for a payoff amount.

3. Update recurring charges

Before cancelling, list every automatic charge linked to the card:

Streaming subscriptions (Netflix, Spotify, Crave)
Insurance premiums
Utility auto-pay
Gym memberships
Phone/internet bills

Update each to a different payment method. Missed payments on services can be disruptive and may trigger NSF fees if the card is declined.

4. Consider the credit score impact

Cancelling a card reduces your total available credit and increases your credit utilisation ratio. If your card had a $10,000 limit and you carry $3,000 across all cards:

Before cancellation: $3,000 / $15,000 total limit = 20% utilisation
After cancellation: $3,000 / $5,000 total limit = 60% utilisation

A jump from 20% to 60% utilisation will meaningfully lower your credit score. If you’re planning a major loan application (mortgage, car loan) within the next 6–12 months, consider delaying the cancellation.

How to Cancel — Step by Step

Option 1: Cancel by Phone (Recommended)

Call the number on the back of your card (or the issuer’s main customer service number)
Ask to speak with the retention department — they have authority to offer annual fee waivers, statement credits, or bonus points to keep you
If retention offers are insufficient, state clearly: “I’d like to close my account”
The representative will confirm your balance is $0 and process the cancellation
Request a written confirmation of the closure by email or mail
Cut up your physical card

A note on retention: Many Canadian issuers will offer meaningful incentives to keep your business — especially if you’re a long-time cardholder. Scotiabank, TD, and CIBC are known to offer statement credits or annual fee waivers on request. It’s always worth asking.

Option 2: Cancel via Secure Message / Online Banking

Some issuers allow online cancellation through your banking portal or secure message:

TD: Secure message through EasyWeb
Scotiabank: Secure message through online banking
Amex: Online through your account (though calling is still recommended for rewards clarity)

Downside: Online cancellation skips the retention conversation where you might receive a counter-offer.

Option 3: In-Branch (Least Common)

You can cancel at a bank branch, but it’s rarely necessary. Branch staff may refer you to the credit card phone line anyway.

After Cancellation

Get written confirmation. Follow up if you don’t receive a cancellation confirmation within 5 business days. This protects you if there’s a dispute about whether the account was closed.

Monitor your credit report. The account will appear as “closed” on your Equifax Canada and TransUnion Canada reports within 30–60 days. Closed accounts in good standing remain on your credit history for up to 10 years, which can actually benefit your score (positive history). Closed accounts with negative marks remain for 6–7 years.

Check for post-cancellation charges. Occasionally, a recurring charge goes through on a cancelled card. The issuer should decline it, but some auto-payments may slip through. Monitor your email for any rejected payment notices.

Reducing the Credit Score Impact

If you want to cancel but are worried about your score:

Request a credit limit increase on another card before cancelling — this maintains your total available credit
Keep your oldest card open if possible — closing your oldest account shortens your credit history length
Time it well — avoid cancelling in the 3–6 months before a major credit application
Consider a product switch instead — ask the issuer to downgrade to a no-fee version of your card rather than cancelling entirely. This preserves your credit history length and available credit.

Credit card cancellation policies vary by issuer. Reward programme terms (including expiry on cancellation) are set by each issuer and are subject to change. Verify with your issuer before closing an account. See our Advertiser Disclosure.