In case your bank card not seems like the very best match, canceling might not be your solely choice. Downgrading to a different bank card means that you can change a card you have already got with one other one from the identical issuer, typically with the purpose of getting a card with a decrease annual charge.
Chase, which points bank cards for a variety of credit score scores, permits cardholders to downgrade a bank card, though there are some restrictions. In the event you’re eligible, downgrading your Chase card ought to be a reasonably simple course of.
Find out how to downgrade a Chase card
Present Chase cardholders should name Chase straight in order that an advisor can course of the downgrade request over the telephone. Chase’s bank card customer support quantity is 800-432-3117.
Chase’s web site and app does provide a safe messaging characteristic, which permits logged-in cardholders to ask questions and make some requests, however downgrade requests can’t be processed this manner.
A Chase enterprise bank card can’t be downgraded to a shopper card, and vice versa.
Advantages to downgrading a Chase card
“Downgrading” may sound such as you’re settling for much less, however on the earth of bank cards, getting a downgrade typically ends in a web achieve. Among the many advantages:
No exhausting pull on credit score report: Downgrading places one other bank card in your pockets with out having to undergo a exhausting pull in your credit score report, doubtlessly sparing you the non permanent loss of some factors to your credit score rating.
Preserved credit score historical past: Downgrading to a different card means you get one other card, however maintain the earlier card’s credit score historical past intact. If the cardboard you’re trying to do away with is one you’ve had for a very long time, a downgrade could also be preferable to canceling the cardboard, as common age of credit score accounts is a consider figuring out one’s credit score rating.
Decreased charges: You could reduce or do away with an annual charge altogether by downgrading a Chase card. Say you presently have Chase’s top-of-the-line journey card, the Chase Sapphire Reserve®, which has a $550 annual charge. Downgrading to the Chase Freedom Flex℠ with its $0 annual charge can be a straightforward technique to reduce that expense.
Rule workaround: Downgrading to a special card might be a workaround to Chase’s casual 5/24 rule. Chase usually gained’t approve you for one more bank card in the event you’ve utilized for greater than 5 bank cards throughout any issuer inside a 24-month interval. Say you’ve hit the five-card restrict over the earlier two years, however you desire a new Chase bank card. It’s attainable to get it by requesting a downgrade reasonably than submitting a brand new card software.
The Chase Freedom Flex℠ is the one Chase Final Rewards®-earning card that may be a Mastercard, and subsequently runs on a special fee community from the Visa playing cards in its “household.” Though your credit score line and historical past stay the identical, downgrading to a card on a special fee community requires getting a brand new bank card quantity. Which means you will must manually replace the cardboard data for any recurring payments or subscriptions you might have arrange on autopay.
Limitations on downgrading a Chase card
Contemplate these restrictions and caveats to Chase’s coverage on downgrading a bank card:
You will not earn a bonus: Acquiring a brand new card by downgrading makes you ineligible for the cardboard’s sign-up bonus, which you may qualify for in the event you utilized for that card as a brand new account. Chase sign-up bonuses embrace money, reward playing cards and bonus factors that may be redeemed by way of Chase’s Final Rewards Program.
You could not get a refund on the annual charge: While you downgrade from a card with an annual charge to 1 with out, chances are you’ll be eligible for no less than a partial refund on the annual charge, however your timing have to be proper. Chase gained’t situation a refund on the annual charge in the event you downgrade the cardboard within the month earlier than the annual charge is due. Say your present card’s annual charge is charged to your bank card on July 1, and also you downgraded to a different card in June. You’ll not obtain a refund on the annual charge that you simply paid nearly a 12 months in the past.
Even with a few of these limitations, downgrading your Chase card generally is a sensible transfer if it ends in a card that higher fits your present life-style.