Credit card cancellers should first clear balance

Those looking to cancel a credit card should do so with caution.

Aussies wishing to close down an account, whether because they have opted for a balance transfer and switched to a new credit card or for whatever reason, have been advised by Money AU to ensure that the balance remaining on the former is first paid off in full.

Indeed, it is suggested that consumers should not give any notification that they wish to cancel their credit card until they manage to do this as "universal default clauses give lenders the ability to do almost anything".

Those that are determined to cancel a credit card were reminded that such a process can be rather bureaucratic and take up to several weeks to process.

And while it was claimed that cancelling a credit card should not have a lasting impact on their credit report, there may be some "minimal and temporary" effects.

Furthermore, the publication advises Aussies to keep hold of at least one credit card just in case.

Meanwhile, Angus Kidman recently wrote in Lifehacker that searching out for a new credit card - which offers a lower rate of interest or beneficial features - can be an effective means for Aussie credit consumers to get back on a firm fiscal footing.