Official / regulatory update · Philippines
Can I cancel a credit card while a balance is still outstanding?
BSP rules allow a bank credit-card account to be cancelled, but an unpaid balance must still be paid in full or covered by another payment agreement.
Yes. A cardholder may cancel or terminate a bank credit-card account at any time, but cancellation does not erase an unpaid balance. Under Section 312 of the BSP Manual of Regulations for Banks, the cardholder must either pay in full or enter into another agreement covering the outstanding balance and any new purchases, debits and deferred installments.
How the remaining balance can be handled
The rule allows payment through one full payment or through installments within a fixed period. Installment repayment is generally subject to interest. If the cardholder breaks the new payment agreement, the treatment may change under that agreement.
What cancellation does not mean
Cancelling the card ends or limits the card account under the bank's process; it is not the same as cancelling the debt. A cardholder who still owes money needs either full payment or a separate arrangement with the bank for the remaining balance and covered transactions.
This answer is for bank-issued credit cards in the Philippines. It comes from the December 2025 consolidated BSP Manual of Regulations for Banks. BSP Circular No. 1003, dated 16 May 2018, is the supporting issuance that introduced the same termination provision.