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

It can. Cancelling a card reduces your total available credit, which increases your credit utilization ratio (a key factor in your score). It can also shorten your average account age over time. If you must cancel, pay off the balance first, keep your oldest card open, and ensure your remaining cards have enough credit limit to keep utilization below 30%.

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

The cancellation itself is usually processed immediately when you call the issuer. However, the account may show as "closed" on your credit report for 1–2 billing cycles. Your credit history for that card stays on your Equifax and TransUnion reports for up to 6–10 years after closure.

Can I cancel a credit card with a balance on it?

Technically yes, but the balance does not disappear. You still owe the remaining amount and must continue making payments. Interest continues to accrue. It is best to pay off the balance in full before cancelling, or transfer the balance to another card first.

How to Cancel a Credit Card in Canada in 2026

Before you cancel a credit card in Canada, stop and consider whether a product switch makes more sense. Cancelling a card reduces your total available credit (raising your utilization ratio), shortens your credit history over time, and permanently removes that account’s limit. In most cases, downgrading to a no-fee version of the same card keeps your account open, your credit history intact, and costs you nothing. The step-by-step process below covers both paths so you can make the right call.

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

Step	Action	Details
1	Redeem all rewards	Cash out points, cashback, or travel rewards before cancelling
2	Pay off the balance	Pay the full statement balance; wait for $0 confirmation
3	Cancel pre-authorized payments	Move recurring bills (subscriptions, insurance, utilities) to another card
4	Call the issuer	Phone the number on the back of your card
5	Request cancellation	Ask to close the account; note the confirmation number
6	Follow up in writing	Send written confirmation via secure message or email
7	Cut up the card	Destroy the physical card and remove it from digital wallets
8	Check your credit report	Verify the account shows as “closed by consumer” after 30–60 days

Phone Numbers to Cancel Major Credit Cards

Issuer	Phone Number	Hours
TD	1-800-983-8472	24/7
RBC	1-800-769-2511	Mon–Fri 8am–12am ET
CIBC	1-800-465-4653	24/7
BMO	1-800-263-2263	Mon–Fri 7am–12am ET
Scotiabank	1-800-267-6868	24/7
Tangerine	1-888-826-4374	Mon–Fri 8am–12am ET
MBNA	1-888-876-6262	Mon–Fri 8am–10pm ET
American Express	1-800-869-3016	24/7
Capital One	1-800-481-3239	Mon–Fri 8am–12am ET
Desjardins	1-800-363-3380	Mon–Fri 8am–8pm ET
Rogers	1-855-775-2265	Mon–Fri 8am–10pm ET
Brim Financial	1-855-462-2746	Mon–Fri 9am–9pm ET
Neo Financial	In-app only	Available in Neo app

Impact on Credit Score

The credit score impact of cancelling a card is real but often overstated. The biggest immediate effect is on your utilization ratio — if you’re carrying balances on other cards, losing available credit can push your utilization above the 30% threshold that scoring models penalize. The example below shows how cancelling a $10,000-limit card doubles your utilization from 15% to 30% on the same balance. The age-of-accounts impact is delayed: closed accounts stay on your report for 6–10 years before dropping off, so you won’t feel that effect immediately.

Factor	Impact	Details
Credit utilization ratio	Negative	Total available credit drops; ratio increases
Average account age	Negative (delayed)	Closed account stays on report 6–10 years, then drops off
Number of accounts	Slight negative	Fewer open accounts
Payment history	No change	History remains on report for 6–10 years
Hard inquiry	None	Cancelling does not trigger a new inquiry

Credit Utilization Example

Scenario	Total Credit Limit	Balance Owing	Utilization
Before cancelling	$20,000 (2 cards)	$3,000	15% (good)
After cancelling one card ($10K limit)	$10,000	$3,000	30% (borderline)
After paying down balance	$10,000	$1,500	15% (good again)

Before You Cancel: Checklist

Check	Why	Action
Redeem rewards	Points/cashback may expire on cancellation	Cash out or use rewards first
Check for annual fee refund	Some issuers refund prorated annual fee	Ask when calling
Move pre-authorized payments	Bills will bounce if card is cancelled	Update all recurring payments
Check if it’s your oldest card	Losing oldest account shortens credit history	Consider keeping it open
Request credit limit transfer	Some issuers can move limit to another card	Ask when calling
Check for product switching	Downgrade to no-fee card instead of cancelling	Keeps account open, no cost

When to Cancel vs Keep a Card

Situation	Cancel?	Better Alternative
Card has an annual fee you don’t want to pay	Maybe	Product switch to no-fee card
You never use the card	Keep it (if no fee)	Use it once every 6 months to keep active
Card is your oldest account	No	Product switch or keep open
You have too much available credit (temptation)	Yes	Or request a credit limit decrease
Card was compromised	Yes	Issuer will send a replacement (not cancellation)
Separating finances (divorce/breakup)	Yes (joint/authorized)	Remove authorized user instead
Better card available	Product switch	Switch to avoid new application

Product Switching Instead of Cancelling

Product switching is almost always the better move. Every major Canadian issuer lets you switch between cards in their lineup without closing your account — your account number, credit history, and credit limit carry over. If you’re paying a $120–$170 annual fee on a premium card you no longer use, switching to the issuer’s no-fee card keeps your credit profile intact at zero cost. The key limitation: you can only switch within the same issuer, and some issuers restrict switches between networks (Visa to Mastercard or vice versa).

Issuer	Can You Product Switch?	Popular Switches
TD	Yes	Any TD Visa → TD Cash Back Visa (no fee)
RBC	Yes	Any RBC card → RBC Cash Back Mastercard (no fee)
CIBC	Yes	Any CIBC card → CIBC Dividend Visa (no fee)
BMO	Yes	Any BMO card → BMO CashBack Mastercard (no fee)
Scotiabank	Yes	Any Scotia card → Scotiabank Value Visa (no fee)
Tangerine	N/A	Only one card offered
American Express	Yes	Any Amex → Amex Essential Credit Card (no fee)
MBNA	Limited	Call to discuss options

Product switching keeps your account history, credit limit, and account age intact while avoiding annual fees.

The Bottom Line

Don’t cancel a credit card unless you have a specific reason — and even then, product switching to a no-fee card is usually smarter. If you do cancel, pay off the balance first, redeem all rewards, move recurring payments, and confirm the closure shows as “closed by consumer” on your credit report.