2 reasons why it could be better to downgrade your credit card instead of canceling it - Business Insider

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If you're worried about your credit score, downgrading to a no-annual-fee credit card is a safer bet

The key is searching for card options from the same card issuer. That way, you can have a card or two in mind before you move onto the next step.Credit card issuers are typically pretty flexible when it comes to letting their customers downgrade credit cards, although there are really no hard and fast rules to point to. Your best bet is having a card in mind to downgrade to, then calling your card issuer using the number on the back of your credit card to ask.

Tell them you don't want to pay the annual fee on your credit card or any other reason you're considering a downgrade. From there, ask them what your options are, and that you would prefer to keep your current line of credit open versus closing it. Keep in mind that your card issuer may also be willing to waive the annual fee on your card versus having you downgrade it, or they might offer enough rewards to make up for the annual fee. This is called a, and it's definitely worth seeing if you're eligible for any incentive to keep your card open if you're already prepared to cancel or downgrade it. The key to finding out is calling in to ask, then downgrading your card if that winds up being the best option.

Your card issuer should send you a new credit card in the mail within 10 business days, which you can begin using upon activation. Either way, you can feel free to destroy your old credit card or tuck it away for safekeeping.You can absolutely downgrade your credit card, but there's an argument to be made for signing up for a new, different credit card instead and simply closing your old one. There are also some downsides to be aware of when it comes to downgrading your credit card.

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