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The Question
Keep, Cancel, or Downgrade? This is undoubtedly one of the most common questions in travel hacking, and for good reason. When we first started, all I could think was how many credit cards can one end up with? The answer is…..a lot. But most of us don’t want to carry around a million cards. While I know it is frustrating that no one will give you a straight answer on this, it’s a really personal choice. Here is our method for determining what to do with our cards.
Questions
When I cancel my card will I lose the points?
This depends on the card. You will want to investigate it before pursuing cancellation. For Example: The Southwest Card through Chase – Once your points have transferred into Rapid Rewards from Chase, you are clear to cancel your card and the points will stay in your rapid rewards account. However, with a Chase Sapphire card, you would lose the points if you canceled the credit card.
How do I downgrade?
To downgrade a credit card, you need to pick a card in the same product line. Let’s say I have a Chase Sapphire Card, I could downgrade that to a Freedom Flex or a Freedom Unlimited card. I could not downgrade to a Southwest card, because that is in a different line even though it is with the same bank. Once you have determined the card you wish to downgrade to, simply call the bank and request a downgrade.
Does a downgrade count against 5/24?
It does not hurt your 5/24. This is a huge reason people will downgrade. It is easy to maintain your credit account, get rid of any annual fees, and not hit 5/24 again with another card.
Will downgrading hurt my credit?
Downgrading your credit card will not hit your credit, as they do not run your credit again. It also maintains longevity of credit because it is not considered a new account.
Can I have too many cards?
Haha. This was my husbands idea. Let’s just say there are differing opinions in our household on this one. My personal answer is NOPE! But the number of cards we have still overwhelms him. So, we will call this a draw for personal preference.
Should I keep a card that I never use?
This is a tricky one. I only keep one card that I don’t really use, and that is my longest standing credit. I got it in college, and still hold onto it because it helps my credit score to have that long standing card on there. We do have some that we don’t use much, but we try to at least utilize them occasionally, so that they don’t close the account.
Is there a downside to downgrading a credit card?
Missing out on a signup bonus is the biggest drawback to downgrading a credit card for us. However, there are times that the card you are downgrading to will have a signup bonus that is not enticing to you. You are also losing whatever perks came along with the card. Be cautious of this as it can be easy to get comfortable with those bonuses and not realize what you are losing.
Will my points disappear if I cancel a Card?
We have all the answers to that HERE.
