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How to Cancel a Credit Card in Canada 2025 Without Hurting Your Score

Updated: March 2026 | Reviewed by the Bremo editorial team

Cancelling a credit card in Canada is straightforward — but doing it carelessly can hurt your credit score. The right approach minimizes impact and protects the credit history you've built. Here's the complete step-by-step process for 2025.

Think twice before cancelling: Closing a credit card reduces your total available credit (increasing your utilization ratio) and can shorten your average account age — both negatively affecting your score. Consider downgrading to a no-fee card instead of cancelling entirely.

When Cancelling Makes Sense

The annual fee is no longer worth the benefits you're using
You're simplifying your wallet after a welcome bonus period
The card's rewards program no longer fits your spending
You have multiple cards and this one is redundant

When You Should NOT Cancel

It's your oldest credit card — closing it will shorten your credit history significantly
You're planning to apply for a mortgage or major loan within 12 months
Cancelling would bring your total credit limit below 3x your typical monthly balance
A no-fee downgrade option exists — use that instead

Step-by-Step: How to Cancel a Credit Card in Canada

Redeem or Transfer All Points

Points and rewards are typically forfeited when you cancel. Redeem all cash back, transfer Aeroplan/Scene+ points to your loyalty account, or use up gift card credits before you call. Amex MR points are tied to your Amex card — transferring to Aeroplan before closing preserves their value.

Pay Your Balance to Zero

Make sure your full statement balance — including any pending transactions — is paid off completely. You cannot close a card with an outstanding balance.

Cancel All Recurring Charges

Move any subscriptions (Netflix, gym memberships, insurance, etc.) to a different card before cancelling. Otherwise, these payments will fail and you may lose service or incur late fees.

Ask About Downgrading First

Before cancelling, ask your bank if you can downgrade to a no-fee version of the card. This preserves your credit limit and account history while eliminating the annual fee. TD, RBC, CIBC, Scotiabank, and BMO all offer no-fee versions of their premium cards.

Call to Cancel

Most Canadian banks require a phone call to cancel a card — online cancellation is not typically available. Call the number on the back of your card. You'll likely be transferred to a retention team who will offer incentives to keep the card (bonus points, annual fee rebates). Only accept if the offer genuinely changes your assessment.

Confirm in Writing

Request written confirmation (email or letter) that the account has been closed. Keep this for your records. Monitor your credit report 30–60 days later to confirm the account shows "closed by cardholder."

Destroy the Physical Card

Cut up or shred the card once you've confirmed closure. Cut through the chip and magnetic strip.

Impact on Your Credit Score

Factor	Impact of Cancelling	Severity
Credit utilization	Limit decreases → utilization ratio increases	Moderate
Account age	If oldest card, average age drops	Moderate to High
Payment history	No impact — history remains on file for 6–7 years	None
Credit mix	Minor if you still have other revolving credit	Low
Hard inquiries	None — cancellation does not create a hard inquiry	None

Score recovery: Most credit score impacts from cancelling a card recover within 3–6 months as long as you maintain responsible use on your remaining cards.

Points Forfeiture Rules by Issuer

Program	What Happens When You Cancel
Amex Membership Rewards	Points forfeited — transfer to Aeroplan first
Aeroplan (TD/CIBC)	Points stay in your Aeroplan account — not forfeited
Scene+ (Scotiabank)	Points stay in your Scene+ account — not forfeited
RBC Avion	Points forfeited — redeem before closing
TD Rewards Points	Points forfeited — redeem before closing
BMO Rewards	Points forfeited — redeem before closing
Cash Back	Unpaid cash back may be forfeited — check your balance

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Bottom Line

Cancelling a credit card in Canada is a 7-step process: redeem your rewards, pay your balance, move recurring charges, consider downgrading instead, call to cancel, get written confirmation, and destroy the card. The credit score impact is real but usually temporary — and often avoidable entirely by downgrading to a no-fee version of the same card rather than closing the account outright.