Ready to say goodbye to your American Express credit card in Australia? It's a straightforward process, but there are a few important steps to ensure a smooth closure and avoid any unwanted surprises. Let's walk through it together.
Step 1: Assess Your Reasons for Closing and Consider Alternatives
Before you pick up the phone or log in, take a moment to understand why you're closing your Amex card. Is it high annual fees, a change in spending habits, or simply consolidating your finances? Knowing your reason can help you determine if closing is truly the best option, or if there are alternatives that might serve you better.
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| How To Close American Express Credit Card Australia |
Alternatives to Full Closure:
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Downgrading to a Lower-Fee or No-Fee Card: If the annual fee is the main issue, American Express might offer a card with a lower or no annual fee that still suits your needs. This can help preserve your credit history.
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Temporarily Suspending Your Card: If you just need a break from spending, you might be able to temporarily suspend your card instead of closing it entirely.
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Reducing Your Credit Limit: If overspending is a concern, consider reducing your credit limit. This can help manage your spending without impacting your credit history as much as a full closure.
Step 2: Clear Your Outstanding Balance and Settle All Debts
This is a critical step. American Express will not generally close your account until your balance is $0. Ensure all transactions have cleared and there are no pending charges.
Sub-heading: Calculating Your Final Payout
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Check Your Latest Statement: Review your most recent statement to get an idea of your current balance.
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Account for Pending Transactions: Remember to include any recent purchases that may not have appeared on your statement yet.
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Consider Interest and Fees: Even after you stop using the card, interest can still accrue on an outstanding balance. Factor in any potential interest or late payment fees that might be applied before your final payment. It's often best to pay slightly more than you think you owe to ensure the balance is truly zero. American Express can provide you with the exact final payout amount.
Step 3: Redeem All Your Hard-Earned Rewards Points
Don't let your valuable Membership Rewards points go to waste! Once your card is closed, you generally lose access to any unredeemed points.
QuickTip: Treat each section as a mini-guide.
Sub-heading: Ways to Redeem Your Amex Points:
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Travel: Redeem for flights, hotels, or car rentals through American Express Travel Online or by transferring to airline or hotel loyalty programs (e.g., Qantas Frequent Flyer, Velocity Frequent Flyer, Hilton Honors).
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Gift Cards: Convert your points into gift cards for various retailers.
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Statement Credit: Use your points to pay off eligible charges on your statement.
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Online Shopping: Some merchants, like Ticketmaster, allow you to use Amex points directly at checkout.
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Paying Annual Fees: On selected cards, you might be able to use points to cover your annual fee.
Pro-Tip: Redeem your points a few days before you plan to cancel to ensure the redemption process is complete and the points are no longer tied to your card.
Step 4: Cancel All Automated Payments and Subscriptions
Many people link their credit cards to recurring payments for subscriptions (Netflix, Spotify), utilities, or other bills. Closing your card without updating these can lead to missed payments, service interruptions, or even late fees.
Sub-heading: A Thorough Check of Your Recurring Charges:
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Review Past Statements: Go through your last 6-12 months of statements to identify all recurring charges.
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Update Payment Information: Contact each service provider and update your payment method to another card or bank account.
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Set Reminders: If you have any less frequent recurring payments (e.g., annual software subscriptions), make a note to update them when they are due.
Step 5: Contact American Express Australia to Initiate Closure
Once you've completed the above steps, you're ready to formally close your account. For American Express Australia, the primary method for closing a credit card is by phone or through their online chat/account management.
Sub-heading: Contacting Amex:
QuickTip: A slow read reveals hidden insights.
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Phone Call (Recommended for Final Confirmation):
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From Australia: Call 1300 132 639 (General Customer Service) or the number on the back of your card.
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From Overseas: Call +612 9271 8664.
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Be prepared to provide your account details and confirm your identity.
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Clearly state that you wish to close your credit card account.
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The representative may try to offer alternatives or retain your business. Politely decline if you're set on closing.
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Important: Ask for a confirmation number or email stating that your account has been closed. Note the date, time, and the name of the representative you spoke with. This is crucial for your records.
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Online Account/App:
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Log in to your American Express Online Account or the Amex App.
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Navigate to Account Management > Card Management > Cancel Card Account.
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Alternatively, you can often initiate a cancellation request through the online chat feature available 24/7. While you may start the process online, a phone call is often recommended to ensure immediate action and receive clear confirmation.
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Step 6: ✂️ Safely Dispose of Your Card ️
Once your account is officially closed and you have confirmation, it's time to safely dispose of your physical card.
Sub-heading: Secure Shredding:
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Shred or Cut: Use a cross-cut shredder if you have one. Otherwise, cut the card into multiple small pieces, ensuring the chip, magnetic stripe, and account number are completely destroyed.
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Separate Pieces: Dispose of the pieces in different bins to further prevent any potential reconstruction.
Step 7: Monitor Your Credit Report ✅
After a few weeks, it's a good practice to check your credit report to ensure the closure is reflected accurately.
Sub-heading: What to Look For:
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Account Status: Verify that the American Express account is listed as "closed by cardholder" or similar, with a $0 balance.
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Credit Score Impact: Closing a credit card can sometimes temporarily impact your credit score, especially if it was an older card with a high credit limit. This is because it reduces your overall available credit and can shorten your average credit history. However, the impact is usually minor and temporary if you have other healthy credit accounts.
Frequently Asked Questions (FAQs) About Closing Your American Express Credit Card in Australia
Tip: Highlight sentences that answer your questions.
How to check my American Express balance before closing?
You can check your balance by logging into your American Express online account, using the Amex App, or by calling American Express customer service.
How to redeem American Express Membership Rewards points in Australia?
You can redeem Membership Rewards points online through your Amex account for travel, gift cards, statement credits, or by transferring to partner loyalty programs like Qantas Frequent Flyer.
How to cancel automated payments linked to my Amex card?
You'll need to contact each service provider (e.g., Netflix, electricity company) directly and update your payment method to a different card or bank account.
How to contact American Express Australia customer service for cancellation?
You can call American Express Australia at 1300 132 639 from within Australia, or +612 9271 8664 from overseas. Online chat and account management options are also available.
How to get a confirmation of account closure from American Express?
Tip: Be mindful — one idea at a time.
When you call to close your account, request a confirmation number or an email confirming the closure. Note down the date, time, and the name of the representative.
How to dispose of my American Express card safely?
Shred your card using a cross-cut shredder, or cut it into many small pieces, ensuring the chip, magnetic stripe, and account number are completely destroyed.
How to check if my credit report reflects the Amex card closure?
You can obtain a copy of your credit report from credit reporting agencies in Australia (e.g., Equifax, Experian, Illion) and check for the updated status of your American Express account.
How to know if I'll get a pro-rata refund on my annual fee?
American Express typically provides a pro-rata refund of the annual fee if you close your account. Confirm this with the representative when you call to cancel.
How to deal with an outstanding balance after closing my Amex card?
If there's an outstanding balance after closing, you are still responsible for paying it off according to the terms of your agreement. Interest may continue to accrue until the balance is paid in full.
How to minimise the credit score impact of closing an Amex card?
To minimise impact, ensure you have other healthy credit accounts, keep your credit utilisation low on your remaining cards, and consider if alternatives like downgrading are viable before outright closure.
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