AwardWallet may receive compensation from advertising partners when you visit our site, click on a link, when you are approved for a credit card, or when an account is opened. Terms Apply to the offers listed on this page. Enrollment is required for select Amex benefits. The opinions expressed here are our own and have not been reviewed, provided, or approved by any bank advertiser. Here’s our complete list of Advertisers.
Offers for the Amex EveryDay® Credit Card, Citi Custom Cash® Card, Citi Prestige® Card, Chase Freedom Flex℠, Ink Plus® Business Credit Card and Ink Business Preferred® Credit Card are not available through this site. Some offers may have expired. Please see our card marketplace for available offers
Managing the credit cards in your wallet is a crucial component of maximizing rewards travel. It requires a careful assessment of each card to decide if the benefits and points earned outweigh any annual fee and to determine whether it aligns with your current travel goals.
And if you've decided that a particular card in your wallet no longer supports those goals, that's okay. But first, consider whether you can downgrade your card instead of outright canceling it. Here's when you should downgrade.
Page Contents
Reasons to Downgrade or Cancel a Credit Card
You might want to downgrade or cancel a credit card for any number of reasons. These can include:
- A shift in your rewards strategy — focusing on a different loyalty program to achieve a specific travel goal.
- Changes to a rewards program attached to the card — perhaps it no longer aligns with your rewards strategy, like the loss of your favorite transfer partner.
- A reduction of bonus categories, benefits, or the points-earning power of the card — maybe your card is less rewarding or perk-filled than it used to be.
- A change in personal circumstances — a new job or welcoming a new addition to the family.
- The fee outweighs the value you're receiving from the card benefits.
- Moving to a new location — this can necessitate a change of preferred airline, hotel chain, or airport lounge membership.
- A new rewards card entering the market — you might find a different card that aligns more closely with your travel goals and spending habits.
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.
Related: Beginner's Guide to Building a Credit Card Application Strategy
Downgrade a Credit Card vs. Canceling a Credit Card
Deciding the fate of cards that don't make the cut can be tricky, as there are several thing to consider.
You want to ensure that you don't lose any miles and points if you close your card while also making sure you can still 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.
Before deciding to downgrade or cancel a credit card, it’s worth calling the credit provider 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.
If there are no promotions or retention offers available for you, there are a few things you'll want to weigh.
Can the card be downgraded?
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. Additionally, Amex cards that utilize the “Pay Over Time” 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.
How will it affect my credit score?
Downgrading a credit card can ensure the age of your account sticks and keeps the credit line open without any hard pulls; both factors play a role in your credit score.
Will you lose perks or benefits that lower the value of your points/miles?
Downgrading can sometimes reduce the value of the points in your account. For example, if you downgrade from the Chase Sapphire Preferred® Card to the Chase Freedom Flex℠ without having the Ink Business Preferred® Credit Card or Chase Sapphire Reserve®, you cannot transfer Ultimate Rewards to travel partners, and points are only worth 1¢/point through Chase Travel℠.
Will downgrading disqualify you from earning a new cardmember bonus on other cards?
When you downgrade from one card to another, it might make you ineligible to receive a welcome bonus from opening that card. Each issuer has different rules and restrictions you'll need to navigate.
Related: Why You Shouldn't Cancel a Credit Card in the First Year
The Best Credit Card Downgrade Options
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, Chase, and Citi.
Downgrading American Express Cards
With American Express, you do not receive a prorated annual fee from your Amex card if you cancel more than 30 days after the annual fee posts to your account. The same rule doesn’t apply to downgrading products. When upgrading or downgrading an Amex card, you still receive a prorated fee if it's within 30 days of the fee posting.
If you hold a regular American Express credit card and want to downgrade, the best options are Amex EveryDay® Credit Card or the Blue Cash Everyday® Card from American Express To maintain and continue using a balance of Membership Rewards points, the Amex EveryDay will allow you to continue collecting and transferring Amex Membership Rewards with no annual fee.
If you hold an American Express card that makes use of the “Pay Over Time” option, your options are a bit more limited.
For reference, the Amex business card with the lowest annual fee is the Business Green Rewards Card from American Express, which charges a $95 (Rates & Fees).
Chase product change tips
Many of Chase's cards are co-branded cards attached to hotel and airline loyalty programs like Southwest Rapid Rewards and Marriott Bonvoy. The downside of these cards is that you cannot downgrade or product change them to one that earns Ultimate Rewards or cash back.
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℠ Card to the United℠ Explorer Card. Just be aware that you won't earn any signup bonus from the new card after downgrading.
The same rule goes for Chase branded cards, which can only be downgraded to another card that earns Ultimate Rewards points.
If you hold the Ink Plus Card, you can downgrade to the Ink Business Cash® Credit Card — a fantastic small business credit card that charges a $0 annual fee. Just note that you might be better off applying for the Ink Cash outright instead of downgrading your account.
- Earn $750 when you spend $6,000 on purchases in the first three months after account opening
- Earn 5% cash back on the first $25,000 spent in combined purchases at office supply stores and on internet, cable and phone services each account anniversary year
- Earn 2% cash back on the first $25,000 spent in combined purchases at gas stations and restaurants each account anniversary year. Earn 1% cash back on all other purchases
- With Zero Liability you won't be held responsible for unauthorized charges made with your card or account information.
- No Annual Fee
- Redeem rewards for cash back, gift cards, travel and more through Chase Ultimate Rewards®.
- 0% introductory APR for 12 months on purchases
- Earn 5% total cash back on Lyft rides through 9/30/27.
- Member FDIC
- Rates & Fees
- 5% cash back on the first $25,000 spent in combined purchases at office supply stores and on internet, cable and phone services each account anniversary year
- 2% cash back on the first $25,000 spent in combined purchases at gas stations and restaurants each account anniversary year
- 1% cash back on all other card purchases with no limit to the amount you can earn
How To Downgrade the Chase Sapphire Preferred
If you intend to downgrade the Sapphire Preferred, arguably the best option without an annual fee is the Freedom Flex.
The card still earns Ultimate Rewards points with bonus categories that earn up to 5%. However, you need to hold an eligible Chase card — such as the Ink Preferred — to be able to transfer points to Ultimate Rewards travel partners or redeem points for more than a penny apiece through the Chase Travel℠.
The easiest way to downgrade is by calling the customer service number on the back of your card. You can tell the agent the card you want to downgrade to your card of choice. You may be able to process a card downgrade by messaging customer service through your online account. However, your mileage may vary with this method.
When you downgrade the Sapphire Preferred or any other type of Chase card, you'll keep the same credit card number, balance, credit line, and payment due date. Chase will not do a hard pull on your credit since you are keeping your existing account. You'll also keep any Ultimate Rewards you've earned, but — as we mentioned — they won't be as valuable as when you held the Sapphire Preferred.
Note: Chase does not allow cardmembers to hold more than one Sapphire card. Downgrading from a Sapphire card to another card doesn't immediately lift this restriction. We've seen reports the process can take 45 days or more to fully reflect on your account.
Related: Who Is Eligible To Get a Bonus on the Chase Sapphire Preferred® Card
Citi product change tips
Citi will not let you downgrade within the initial 12 months of opening a credit card account. If you downgrade after the fee is applied, they will charge at least part of the annual fee on the card.
There are a couple of options for downgrading Citi cards. The Citi Double Cash® Card is an easy-to-understand 2% cash-back card offering 1% when you buy plus 1% as you pay your statement.
If Citi ThankYou® Points is your preferred method of earning within Citi, the Citi Custom Cash® Card is a $0 annual fee card that allows you to maintain a balance earned on a Citi Strata Premier® Card or Citi Prestige® Card (not available to new applicants). However, you cannot transfer points to the full list of travel partners without one of the two premium cards.
Final Thoughts
Before you officially decide whether to cancel or downgrade a card, there are several things you should consider. Most of the time, this isn't just a simple decision!
We highly recommend talking to a customer service representative to see if there are any promotions or bonuses available before heading down either path. It's also worth exploring downgrade options before deciding to cancel a card as cancellations can sometimes adversely affect your credit score.
For rates and fees of the cards mentioned in this post, please visit the following links: Business Green Rewards Card from American Express (Rates & Fees), and Ink Business Cash® Credit Card (Rates & Fees)
The comments on this page are not provided, reviewed, or otherwise approved by the bank advertiser. It is not the bank advertiser's responsibility to ensure all posts and/or questions are answered.
Can a person downgrade from a United card to a Chase Ink card? Thanks!
Unfortunately not. But you should be able to downgrade to the no-annual-fee United Gateway Card.
I just read a different article which gave me another thing to consider when looking to downgrade a Citi premier card (which I recently did but now regret!). It said after earning a sign on bonus for the Premier, you have to wait 24 months to be eligible to earn another sign on bonus for the same card…BUT, if you downgrade that resets the clock and you have to wait another 24 months to again be eligible for the bonus on a new Premier.
I was very close to 24 months and wanted to avoid the annual fee, but I would have been better off to pay it, wait a bit longer and apply for a second Premier to get the bonus, and THEN downgrade the first one ?
The 60K bonus would have been more than enough for the 3 of us to fly round trip to Hawaii when transferred to Turkish Airlines points and redeemed on partner United, well worth 2 annual fees!
Ughh! That’s really frustrating. I’m finding myself in a similar situation now, so I’ve been looking into this. The policy seems to be that if you got a new card number, it counts as an account close/open and resets the clock. If Citi keeps your old number, I understand that the downgrade does NOT reset the 24-month clock.
What card did you downgrade to?
Good overview of the options, but didn’t really explain when the best time is to downgrade a card…I’m assuming shortly after the AF hits?
This post was very informative and one that I’ll be referring to when I look to cancel or downgrade some cards in the near future. Thank you!
Interesting article. New to rewards cards & recently approved for CSR. Like the perks, but can see how the fee may become cumbersome if I don’t travel enough. Appreciate the recommendations for maintaining the UR points. Are there posts about how best to determine whether the fees or perks are paying off?
Frank, we provide some insight on how to look at the value, but you need to individually look at what you’re paying to see if it makes sense for your specific case. For example, if the only benefit you receive from a card is lounge access but you never use the lounge, it sounds like it is not paying off.
I had the Delta gold Amex card and received 50,000 bonus miles for reaching a certain spending threshold within 3 months. After a year’s time I noticed that I was charged the annual fee. I was then able to cancel the card within the 30 day window and get a full refund. I was offered the option of signing up for the no-fee Amex EveryDay card and got another 10,000 miles after reaching an easy spending requirement. I hope my FICO score is not affected by cancelling and signing up for the new card, but I was able to get a total of 60,000 miles with no fee.
Recently was looking to downgrade my CSP to a regular sapphire, but instead went to a Freedom, which has much more UR earning potential.
And no annual fee as well – that is the move I would have gone with (either that or the Freedom Unlimited which earned 1.5x all the time)
This is good avise. Probably the most important yet not so highlighted tip is to _attempt_ to downgrade them. Most companies (and not just credit card) will prefer to offer a promotion rather than losing a customer. So once you investigated a little bit about the options (the next steps below), you have the tools to make the call with some arguments to negotiate!
Timely article for me: recently approved for the Reserve and have been debating how to proceed with the Preferred.
I’ve had the Amex Green since forever. I also have Amex Hilton, Everyday Preferred, and Platinum. I’m trying to figure out what to do with Green Card as the age is good for my credit score, but I don’t like the Membership Rewards earning rates. Should I upgrade Green to Gold? Does that mean I lose any chance of promo MR for Gold? Should I apply for Gold first to get Promo MR and then deal with doing something with Green?
Frank, I’d call up Amex and tell them this exact story and ask what your options are for converting the card product. This is a perfect scenario for Amex to do the right thing. Upgrading in place would preclude you from a future bonus on that updated card.
Thank you so much for the advice! Question on Citi Double Cash cards – can you possess more than one Double Cash card at the same time (I already have one, but may want to downgrade one other Citi card)? Thanks!
Bill, I don’t personally know if you can — however, not sure why you’d want to do this. Perhaps look to convert to another product like the ThankYou Preferred? Are you looking to keep the account open from an aging perspective or just keep the line of credit available?
If I downgrade my Chase Ink Plus to the Chase Ink Cash, does it still earn 5 points per dollar on Office supplies, or is it a 3 point deal when I downgrade?
Joseph, you’ll still earn 5 points/dollar. That is exactly what I did earlier this year with my Ink Plus converting it to an Ink Cash.
Howie, the Ink Cash isn’t one of Chase’s UR cards that’s being demoted to only 3x rewards instead of 5x? Or, are you saying we’d still earn 5x because we’re downgrading an existing acct from Ink Plus to Ink Cash?
Rick, the rumors being spread were only about new cardmembers — not existing ones and they have not been confirmed or denied at this point. So currently, a conversion would still get you 5x. This could of course change in the future.
Howie, are new Chase *biz* card applications subject to 5/24, or does that apply only to personal cards?
The new Ink Preferred is indeed subject to 5/24
I guess the Ink Cash is also subject to 5/24?
Correct, it is.
Can I downgrade my Ink Plus to Ink Cash and still be able to transfer points to my Sapphire Reserve?
What’s the downside to downgrading Ink Plus to Ink Cash?
Yes, you can do that conversion and then consolidate points. As for the downside, when paired with the Sapphire Reserve I haven’t found one yet. I guess if you’re spending more than $25,000 at 5x earning categories you’ll lose a bit as the Ink Plus rewards you at 5x on up to $50,000/year, whereas the Ink Cash is only up to $25,000/year.
But at one has to watch their total credit line with Citi. At some point the credit risk would be too high, unless you ask them to reduce credit with individual cards.
Good idea.
Don’t forget about the CIti Costco Anywhere card, for those of you with Costco memberships.
I should probably downgrade my Barclays as they did away with miles for revenue [test]
Thanks for explaining the issues to consider. I guess I’m stuck with some branded credit cards, but might downgrade others in lieu of cancellation.
The Amex Fidelity card is another good option… Unlimited 2℅ cash back, no annual fee.
Agree completely. I have this card as well.
Will Citi let you downgrade their Premier to their Prefered without many issues? Never dealt with a card with annual fee and would just like to know I have the option to downgrade (or upgrade) depending on how life happens?
Rob, I’ve actually done this and had no issues. They evaluate each cardholder on a case by case basis, however.
As a UK credit card holder, I always downgrade the £195 BA credit card to the free one when I’ve earned the Companion Voucher.
That’s a wise idea. My wife has two vouchers. I doubt we will ever use them. Might as well downgrade now.
And now to consider the £450 Amex Plat fee.