Introduction

With inflation on the rise, and finances tight, you might be rethinking that high-annual-fee credit card. If you're not traveling or finding value in the perks, it may seem wise to get rid of that hefty fee. However, you may be concerned about the impact on your credit score if you close the account.

Luckily, downgrading your credit card can be a smart alternative.

Downgrading Your Credit Card

Most credit card issuers, including Chase, offer the option to downgrade your card to one with a lower or no annual fee. By doing so, you can eliminate that expensive fee without the negative impact on your credit score that closing an account might have.

Saving Your Credit Score

Downgrading your card won’t negatively affect your credit score. Your account will retain the same credit history and credit limit on your credit report. The downgrade is an internal product change, so the credit bureaus remain unaware, and no credit check is required.

Con: Impact on Your Rewards

While downgrading your card has many benefits, it can impact your rewards. Although you won’t lose your rewards, the value and rules around them will adjust to match the new card. For instance, if you downgrade from the Chase Sapphire Preferred® Card to the Chase Freedom Unlimited®, you’ll lose the ability to transfer your points to partner airlines or hotels.

Welcome Bonus During Upgrade or Downgrade

Typically, welcome bonuses are only available to new cardholders. If you upgrade or downgrade a card, you won’t receive a welcome offer unless you’re targeted for a special promotion.

Downgrading and the Chase 5/24 Rule

Chase's 5/24 rule states that if you’ve opened five or more credit cards within the last 24 months, you can’t be approved for a new Chase card. However, downgrading a card doesn’t count as opening a new one and won’t impact this rule.

How to Downgrade

To downgrade a Chase credit card, call the number on the back of your card. Most downgrades are approved. Your card number will remain the same, so you can continue using your old card until the new one arrives. However, the CVV and expiration date will change.

When to Downgrade

Chase allows you to downgrade a card within 41 days of the annual fee being billed to receive a full refund. If you downgrade after 41 days, you may receive a prorated refund. Remember, you can only downgrade after the first year of opening the account.

What Can I Downgrade To?

Here are your downgrade options for various Chase cards:

• Chase Sapphire Reserve® ($550) and Chase Sapphire Preferred® Card ($95)
• Downgrade to:
  • Chase Sapphire Preferred® Card ($95)
  • Chase Freedom Unlimited® ($0)
  • Chase Freedom Flex® ($0)
  • Sapphire ($0, only available via product change)
• Ink Business Preferred® Credit Card ($95)
• Downgrade to:
  • Ink Business Cash® Credit Card ($0)
  • Ink Business Unlimited® Credit Card ($0)
• United Club℠ Infinite Card ($525), United Quest℠ Card ($250), or United℠ Explorer Card ($95)
• Downgrade to:
  • United Quest℠ Card ($250)
  • United℠ Explorer Card ($95)
  • United Gateway℠ Card ($0)
• IHG One Rewards Premier Credit Card ($99)
• Downgrade to:
  • IHG One Rewards Traveler Credit Card ($0)
• Marriott Bonvoy Boundless Credit Card ($95)
• Downgrade to:
  • Marriott Bonvoy Bold Credit Card ($0)
• Chase Southwest Personal Cards
• Downgrade to any Southwest Personal credit card:
  • Southwest Rapid Rewards® Priority Credit Card ($149)
  • Southwest Rapid Rewards® Premier Credit Card ($99)
  • Southwest Rapid Rewards® Plus Credit Card ($69)
• Chase Southwest Business Cards
• Downgrade to any Southwest Business credit card:
  • Southwest® Rapid Rewards® Performance Business Credit Card ($199)
  • Southwest® Rapid Rewards® Premier Business Credit Card ($99)
• British Airways Visa Signature® Card ($95)
  • Note: Unfortunately, there is no longer a downgrade option for this card.
• Ink Business Premier® Credit Card ($195)
  • Note: There is no downgrade option available, but closing this business card won’t impact your personal credit score.