{"id":257559,"date":"2026-08-14T20:00:54","date_gmt":"2026-08-14T20:00:54","guid":{"rendered":"https:\/\/entertainment.runfyers.com\/index.php\/2026\/08\/14\/should-you-cancel-or-downgrade-your-credit-card-the-points-guy\/"},"modified":"2026-08-14T20:00:54","modified_gmt":"2026-08-14T20:00:54","slug":"should-you-cancel-or-downgrade-your-credit-card-the-points-guy","status":"publish","type":"post","link":"https:\/\/entertainment.runfyers.com\/index.php\/2026\/08\/14\/should-you-cancel-or-downgrade-your-credit-card-the-points-guy\/","title":{"rendered":"Should you cancel or downgrade your credit card? – The Points Guy"},"content":{"rendered":"


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Your credit card’s annual fee is due. For one reason or another, you’ve decided that it’s not worth paying the fee to keep your card for another year. Or maybe it’s a credit card you no longer use<\/a><\/span> or want, so you’re considering closing the account.<\/p>\n

Your first inclination might be to cancel your card. However, other options exist: You could downgrade or product change your card instead.<\/p>\n

Wondering what those options are and how they work? Let’s look at what goes into the decision. Then you can make an informed choice to cancel, downgrade or product change your credit card.<\/p>\n

What is downgrading a credit card?<\/h2>\n

Downgrading is when you switch your credit card to one that earns the same type of rewards but has a lower (or no) annual fee.<\/p>\n

Here’s an example: I previously held the United\u2120 Explorer Card<\/a><\/span> (see rates and fees<\/a><\/span>) but wasn’t flying United much, so the $150 annual fee ($0 introductory annual fee for the first year) wasn’t worth it to me.<\/p>\n

I downgraded this card to the United Gateway\u2120 Card<\/a><\/span> (see rates and fees<\/a><\/span>), which has no annual fee.<\/p>\n

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Both cards earn United Airlines miles, so they’re in the same family. I downgraded my card, but didn’t need to open a new card. I also kept my credit history with this card, since it’s considered the same account on my credit report.<\/p>\n

It’s worth noting that not all cards have downgrade options. For example, you can’t downgrade the IHG One Rewards Premier Business Credit Card<\/a><\/span> (see rates and fees<\/a><\/span>). That’s because there’s no other IHG business credit card, and you can’t change between personal and business credit cards.<\/p>\n

Related: When can you downgrade your credit card?<\/a><\/span><\/strong><\/p>\n

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What is product changing a credit card?<\/h2>\n

Product changing means swapping out your current card for one that earns a different type of rewards currency. It’s different from downgrading, which means switching to another card within the same family, i.e., earning the same type of rewards.<\/p>\n

As with downgrading, your account history is preserved because you aren’t canceling your credit card. You can also choose a card with a lower annual fee if that’s your goal.<\/p>\n

Both Bank of America and Citi allow you to product-change a credit card to one that earns a completely different type of rewards.<\/p>\n

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For example, I product changed the Air France-KLM World Elite Mastercard\u00ae<\/a><\/span> to the Bank of America\u00ae Unlimited Cash Rewards credit card<\/a><\/span>. In another instance, I changed the Citi\u00ae \/ AAdvantage\u00ae Platinum Select\u00ae World Elite Mastercard\u00ae<\/a><\/span> to the Costco Anywhere Visa\u00ae Card by Citi<\/a><\/span> (see rates and fees<\/a><\/span>).<\/p>\n

The information for the Air France-KLM Mastercard and the Citi\u00ae \/ AAdvantage\u00ae Platinum Select\u00ae World Elite Mastercard\u00ae has been collected independently by The Points Guy. The card details on this page have not been reviewed or provided by the card issuer<\/em>.<\/p>\n

I was able to preserve my credit history by keeping my accounts open, while switching to a card that costs me nothing to keep open year after year.<\/p>\n

Related: How your credit scores work<\/a><\/span><\/strong><\/p>\n

Should I downgrade, product change or cancel a credit card?<\/h2>\n

You can cancel your credit card, which will close your account permanently. Policies vary by bank, but you should receive a refund of your annual fee (or at least part of it) if you cancel your card<\/a><\/span> within 30 days after the fee is posted.<\/p>\n

However, when deciding whether to cancel your card or keep it open with a downgrade or product change, consider the following:<\/p>\n