We’re big fans of using credit cards to earn travel points and perks, but we’re also big fans of being smart about it. If you’ve ever opened a premium travel card with a big annual fee, you’ve probably hit that moment where you ask yourself: “Is this still worth it?”
The good news? You don’t always have to cancel a card you’re not loving anymore — you can often downgrade it instead. Let’s walk through what that actually means, when it’s the right move, and how to do it without hurting your credit score (or losing your points in the process).
What Does It Mean to “Downgrade” a Credit Card?
Downgrading a credit card means switching from a card with a higher annual fee to a no-fee or lower-fee card from the same credit card issuer. It’s an easy way to keep your account open (which is great for your credit history) without continuing to pay for benefits you no longer need or use.
For example:
You could downgrade the Chase Sapphire Preferred ($95/year) to a Chase Freedom Flex (no annual fee).
Or the Amex Platinum ($695/year) to the Amex Green ($150/year) or Amex EveryDay (no fee).
When Should You Downgrade?
Here are a few signs it might be time to consider downgrading:
You’re not using the card’s benefits enough to justify the annual fee anymore (looking at you, airport lounges).
You already earned the welcome bonus and don’t plan to close the card, but don’t need its high-end perks long-term.
You want to keep your credit history and credit line intact, but without paying an annual fee.
You’re doing a points strategy shift and want to consolidate your cards into a simpler setup.
A new card from the same issuer has your eye, and you want to downgrade one to make space in your wallet or avoid annual fee overload.
What to Know Before You Downgrade
Before you make the call to downgrade, keep these in mind:
You won’t get a new welcome bonus on a downgraded card — bonuses are only for brand new applications.
You may lose certain travel or shopping protections with the lower-tier card.
If the card has points attached to a specific ecosystem (like Amex Membership Rewards or Chase Ultimate Rewards), be sure you won’t lose access to those points. In some cases, you’ll need to transfer them or combine with another card before downgrading.
Downgrading too soon after opening a card can risk clawbacks or may not be allowed. Most issuers recommend waiting 12+ months.
How to Downgrade a Credit Card
Call the number on the back of your card and ask about your downgrade options. Some issuers let you do this via online chat or messaging too.
Ask questions like:
Will I keep my same account number and credit history?
Will I lose any rewards or benefits?
Are there any upgrade/downgrade offers currently available?
Request the downgrade, confirm the details, and make note of when the change takes effect.
Update your autopay and subscriptions if needed, especially if you’re issued a new card number.
When You Shouldn’t Downgrade
Sometimes downgrading isn’t the right move. A few examples:
If you’re no longer using the card at all, and don’t care about keeping the account open, cancelling might make more sense.
If the downgrade options don’t align with your spending categories or rewards goals.
If you’re eligible to apply for the lower-tier card separately and earn a new welcome bonus — just note that issuers may limit how many cards you can have in the same family.
Our Take
We’ve downgraded several cards over the years — not because we didn’t like them, but because our travel habits and priorities shifted. That’s the beauty of building a smart credit card strategy: you can adjust it as your lifestyle changes.
Downgrading is a great way to stay flexible, protect your credit score, and keep more money in your pocket without losing all the value a card can offer.
Looking for a new credit card for your wallet? Check out our list of favorite credit cards HERE!
