Page Contents<\/p>
- Reasons to Downgrade or Cancel a Credit Card<\/a><\/li>
- Downgrade a Credit Card vs. Cancel a Credit Card<\/a>
- Is there a retention offer available?<\/a><\/li>
- Can the card be downgraded?<\/a><\/li>
- How will it affect my credit score?<\/a><\/li>
- Will you lose perks or benefits that lower the value of your points\/miles?<\/a><\/li>
- Will downgrading disqualify you from earning a new cardmember bonus on other cards?<\/a><\/li><\/ul><\/li>
- The Best Credit Card Downgrade Options<\/a>
- Downgrading American Express cards<\/a><\/li>
- Downgrading Capital One cards<\/a><\/li>
- Downgrading Chase cards<\/a><\/li>
- Downgrading Citi cards<\/a><\/li><\/ul><\/li>
- Final Thoughts<\/a><\/li><\/ul><\/div>\n\n
Reasons to Downgrade or Cancel a Credit Card<\/span><\/h2>\n
You might want to downgrade or cancel a credit card for any number of reasons. These can include:<\/p>\n
- \n
- A shift in your rewards strategy.<\/strong> You might prefer to focus on a different loyalty program to achieve a specific travel goal.<\/li>\n
- Changes to a rewards program<\/strong> attached to the card.<\/strong> Perhaps the loyalty program loses your favorite transfer partner, or it otherwise no longer aligns with your overall rewards strategy.<\/li>\n
- A reduction of bonus categories, benefits, or the points-earning power of the card.<\/strong> Your card might be less rewarding or perk-filled than it used to be.<\/li>\n
- A<\/strong> change in personal circumstances.<\/strong> A new job or a change to the family dynamic can shift your travel goals or financial priorities.<\/li>\n
- The<\/strong> fee outweighs the value proposition.<\/strong> You might simply feel that you aren't receiving as many benefits as you pay in annual fees.<\/li>\n
- Moving to a new location.<\/strong> This can necessitate a change of preferred airline, hotel chain, or airport lounge membership.<\/li>\n
- A<\/strong> new rewards card is entering the market.<\/strong>\u00a0You might find a different card that aligns more closely with your travel goals and spending habits.<\/li>\n<\/ul>\n
If you decide a card is no longer needed or has been made redundant due to new products entering the market, the next step is to decide whether to cancel it or downgrade it to another product with a lower (or $0) annual fee.<\/p>\n
![\"a](\"data:image\/gif;base64,R0lGODlhAQABAIAAAAAAAP\/\/\/yH5BAEAAAAALAAAAAABAAEAAAIBRAA7\")
Credit: Andrea Piacquadio\/Pexels<\/em><\/enter><\/figure>\n Related: Beginner's Guide to Building a Credit Card Application Strategy<\/a><\/strong><\/p>\n
Downgrade a Credit Card vs. Cancel a Credit Card<\/span><\/h2>\n
Deciding the fate of cards that don't make the cut can be tricky, as there are several things to consider.<\/p>\n
You want to ensure you don't lose any miles and points<\/a> if you close your card, while still being able to use and transfer points and miles in a way that offers a decent return. Perhaps most importantly, you need to consider how closing or downgrading the card will affect your credit score<\/a>.<\/p>\n
Is there a retention offer available?<\/span><\/h3>\n
Before deciding to downgrade or cancel a credit card, it\u2019s worth calling the card issuer to see if there are any promotions or retention offers available on your card that might convince you to keep it. If the bonus provides enough value, it might make sense to keep it for an additional year.<\/p>\n
If there are no promotions or retention offers available for you, there are a few things you'll want to weigh.<\/p>\n
Can the card be downgraded?<\/span><\/h3>\n
Some cards, such as the Chase co-branded cards, cannot be downgraded or converted to a card from any other loyalty program or to an Ultimate Rewards-earning card.<\/p>\n
Likewise, Amex cards that utilize the “Pay Over Time<\/a>” option (balances may accrue interest charges) cannot be downgraded\/swapped to regular credit cards and vice versa, nor can you swap between personal and business credit cards.<\/p>\n
How will it affect my credit score?<\/span><\/h3>\n
Downgrading a credit card keeps your credit line open, so you won't have an impact on your average age of accounts. Plus, you're able to receive a new product without a hard pull on your credit report. In other words, downgrading a card can be advantageous if you want to keep your score as high as possible.<\/p>\n
Credit: Andrea Piacquadio\/Pexels<\/em><\/enter><\/figure>\n Will you lose perks or benefits that lower the value of your points\/miles?<\/span><\/h3>\n
Downgrading can sometimes reduce the value of the points in your account. For example, if you downgrade from the Chase Sapphire Preferred\u00ae<\/sup> Card<\/a> to the Chase Freedom Flex\u2120<\/a> without having the Ink Business Preferred\u00ae<\/sup> Credit Card<\/a> or Chase Sapphire Reserve\u00ae<\/sup><\/a>, you cannot transfer Ultimate Rewards to travel partners, and points are only worth 1\u00a2 per point through Chase Travel\u2120.<\/p>\n
Will downgrading disqualify you from earning a new cardmember bonus on other cards?<\/span><\/h3>\n
Downgrading from one card to another may make you ineligible to receive a welcome bonus if you wish to open that card in the future. Each issuer has different rules and restrictions<\/a> you'll need to navigate.<\/p>\n
Related: Why You Shouldn't Cancel a Credit Card in the First Year<\/a><\/strong><\/p>\n
The Best Credit Card Downgrade Options<\/span><\/h2>\n
If you've settled on downgrading as your best option, which card should you try to get instead? Here are some of the most common options for American Express, Capital One, Chase, and Citi.<\/p>\n
Downgrading American Express cards<\/span><\/h3>\n
When you downgrade an American Express card, you generally have a 30-day window after paying your annual fee to get a full refund. If you downgrade after that window, you will receive a prorated refund depending on the portion of the year you held the card.<\/p>\n
If you hold an American Express card and want to downgrade, the best option might be the Blue Cash Everyday\u00ae<\/sup> Card from American Express<\/a>. However, you won't be able to continue collecting and transferring Amex Membership Rewards<\/a>. If you want to earn transferable points, you'll need to pay an annual fee.<\/p>\n
If you hold an American Express card that makes use of the “Pay Over Time” option (like the American Express Platinum Card\u00ae<\/sup><\/a>), your options are a bit more limited. For example, if you have a personal or business card that uses the Pay Over Time option, your most affordable downgrade option would be the Business Green Rewards Card from American Express<\/a>, which charges a $95 annual fee (Rates & Fees<\/a>), and the American Express\u00ae<\/sup> Green Card<\/a>, which charges a $150 annual fee.<\/p>\n
Credit: Andrea Piacquadio\/Pexels<\/em><\/enter><\/figure>\n Downgrading Capital One cards<\/span><\/h3>\n
A great example of when you might consider downgrading is when an issuer launches a new card. When the Capital One Venture X Rewards Credit Card<\/a> launched a few years ago, I was already a cardholder of the Capital One Venture Rewards Credit Card<\/a>. I really wanted a premium card, so I applied for the Capital One Venture X so I'd be eligible for a welcome bonus, and downgraded my Capital One Venture to the Capital One VentureOne Rewards Credit Card<\/a>.<\/p>\n
If you're unfamiliar, here's a quick side-by-side comparison of these three cards:<\/p>\n
<\/div><\/div>Capital One VentureOne Rewards Credit Card<\/div>Welcome Offer<\/strong>\r\n20,000 Miles once you spend $500 on purchases within 3 months from account opening<\/div><\/div>How to Apply<\/a><\/div>Annual Fee<\/strong>$0<\/p><\/div>
Credit Score<\/strong>Excellent, Good<\/p><\/div><\/div>
- \r\n
- 5 Miles per dollar on hotels, vacation rentals, and rental cars booked through Capital One Travel<\/li>\r\n
- 5 Miles per dollar on purchases through Capital One Entertainment<\/li>\r\n
- 1.25 Miles per dollar on every purchase, every day.<\/li>\r\n<\/ul><\/div><\/div><\/div><\/div>Capital One Venture Rewards Credit Card<\/div>Welcome Offer<\/strong>\r\nEarn 75,000 bonus miles once you spend $4,000 on purchases within the first 3 months of account opening, plus receive a $250 Capital One Travel credit in your first cardholder year. <\/div><\/div>How to Apply<\/a><\/div>Annual Fee<\/strong>
$95<\/p><\/div>
Credit Score<\/strong>Excellent, Good<\/p><\/div><\/div>
- \r\n
- 5X miles per dollar on purchases through Capital One Entertainment <\/li>\r\n
- 5X miles per dollar on hotels, vacation rentals and rental cars booked through Capital One Travel<\/li>\r\n
- 2X miles per dollar on all other purchases<\/li>\r\n<\/ul><\/div><\/div><\/div><\/div>Capital One Venture X Rewards Credit Card<\/div>Welcome Bonus<\/strong> Earn 75,000 Miles when you spend $4,000 on purchases in the first 3 months from account opening<\/div><\/div>How to Apply<\/a><\/div>Annual Fee<\/strong>
$395<\/p><\/div>
Credit Score<\/strong>Excellent<\/p><\/div><\/div>
- \r\n
- 10X miles per $1 on hotels and rental cars booked via Capital One Travel<\/li>\r\n
- 5X miles per $1 on purchases through Capital One Entertainment<\/li>\r\n
- 5X miles per $1 on flights when booking via Capital One Travel<\/li>\r\n
- 5X miles per $1 on vacation rentals booked via Capital One Travel<\/li>\r\n
- 2X miles per $1 on all other eligible purchases<\/li>\r\n<\/ul><\/div><\/div><\/div>\n
Your specific product change offers can be found in your account. You aren't always eligible for a product change, and if you are, there's no guarantee you'll be eligible for the card you might prefer. If you see an offer in your account, you can complete the process online with no need to talk to a representative. While you can technically switch to a cash back card, this isn't the best idea if you want access to Capital One's 22 transfer partners<\/a>.<\/p>\n
Downgrading Chase cards<\/span><\/h3>\n
Many of Chase's cards are co-branded with hotel and airline loyalty programs, such as Southwest Rapid Rewards<\/a> and Marriott Bonvoy<\/a>. The downside of these cards is that you cannot downgrade or product change them to a\u00a0card that earns Ultimate Rewards<\/a> or cash back.<\/p>\n
However, if there is more than one card within the card family, you can downgrade to one of those cards. For example, you can downgrade the United Club\u2120 Card<\/a> to the United\u2120 Explorer Card<\/a>. Just be aware that you won't earn any signup bonus from the new card after downgrading.<\/p>\n
The same rule goes for Chase-branded cards, which can only be downgraded to another card that earns Ultimate Rewards points. If you intend to downgrade the Sapphire Preferred<\/a>, arguably the best option without an annual fee is the Freedom Flex<\/a> — which offers solid earnings for a card with no annual fee:<\/p>\n
\n\n\nChase Freedom Flex\u2120<\/div>\n<\/div>\n Learn More<\/a><\/div>\n<\/div>\nWelcome Bonus<\/strong> Earn a $200 Bonus after you spend $500 on purchases in your first 3 months from account opening.<\/div>\n <\/div>\n\n Chase Freedom Flex\u2120<\/strong>\nWelcome Bonus<\/strong> Earn a $200 Bonus after you spend $500 on purchases in your first 3 months from account opening.<\/div>\nAnnual Fee:<\/strong>$0<\/b><\/div>\nShow more<\/a>Earning Rates<\/a>- \r\n
- Earn 5% on up to $1,500 on combined purchases in bonus categories<\/a> each quarter you activate<\/li>\r\n
- Earn 5% on travel purchased through Chase Ultimate Rewards<\/li>\r\n
- Earn 3% on dining at restaurants, including takeout and eligible delivery services<\/li>\r\n
- Earn 3% on drugstore purchases<\/li>\r\n
- Earn 1% on all other purchases<\/li>\r\n<\/ul><\/div><\/div>\n <\/div>\n <\/div>\n
- Earn 5% on up to $1,500 on combined purchases in bonus categories<\/a> each quarter you activate<\/li>\r\n
- Changes to a rewards program<\/strong> attached to the card.<\/strong> Perhaps the loyalty program loses your favorite transfer partner, or it otherwise no longer aligns with your overall rewards strategy.<\/li>\n
- Downgrading Capital One cards<\/a><\/li>
- Can the card be downgraded?<\/a><\/li>
- Downgrade a Credit Card vs. Cancel a Credit Card<\/a>
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