Do you have a credit card with a high annual fee that you don’t think is pulling its weight anymore? Or maybe you want to earn another sweet welcome offer on the Chase Sapphire Preferred® Card, but Chase’s rules say “nope” because you’re already a Sapphire cardholder?
Before you rush to cancel, pause — downgrading your card might be the smarter move.
Downgrading allows you to switch to a card with a lower or no annual fee, helping you maintain your credit history and hard-earned points.
Let’s walk through the basics of downgrading your Chase credit card and why you may want to do so.
What Does It Mean to Downgrade Your Credit Card?
Downgrading is a way to replace your existing credit card with another card from the same issuer. Typically, a downgrade involves going from a card with an annual fee to another card with a lower or no annual fee at all, and the downgraded card usually has fewer perks. Meanwhile, an upgrade involves switching to a card with more benefits and a higher annual fee.
Unlike applying for a new card, downgrading doesn't require a credit check, so there's no hard inquiry on your credit report. It’s like changing outfits, not entire closets.
To downgrade with Chase, you’re required to:
Have your current card for at least 12 months before you downgrade
Stay within the same card family (for example, from a Sapphire card to a Freedom card — not a co-branded one)
Why You Should Downgrade Instead of Canceling
Canceling a card might feel like a clean break, but it can cost you in the long run, especially when it comes to your credit and your points.
You Keep Your Credit History
By downgrading, you keep your account’s original open date and payment history, both of which can help boost your credit score. Older credit cards increase your average age of accounts, which makes up 15% of your credit score. And your payment history makes up a whopping 35% of your credit score, so having a positive record of on-time payments is extremely useful.
Maintain Your Credit Limit
Keeping your credit limit intact helps maintain a lower credit utilization ratio, a key factor in your credit score. Canceling a card reduces your total available credit, potentially increasing your utilization ratio (not great for your score). Having several credit cards with higher credit limits can be helpful because you can request to move credit from an existing card to get a new card approved. For example, if you get denied for the new card because Chase says it extended you the maximum amount of credit you qualify for, you can call and ask to shift some of the credit from your newly downgraded card.
You Keep Your Points
Chase Ultimate Rewards is one of the most valuable travel rewards currencies thanks to its many redemption possibilities. If you downgrade from a Sapphire Preferred to the Chase Freedom Unlimited®, your existing balance of points will remain with the downgraded card. However, you will lose the ability to transfer your points to Chase’s airline and hotel travel partners, unless you have another transferable points card, like the Ink Business Preferred® Credit Card. But if the goal is to apply for a new Sapphire Preferred after you downgrade, you’ll regain the transfer ability and you can combine the points from the Freedom Unlimited with the Sapphire Preferred.
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How To Downgrade Your Chase Card
If you want to downgrade an existing Sapphire Preferred or Chase Sapphire Reserve®, you’ll need to call the number on the back of your card and request a product change.
Before you call, know which card you want to downgrade to. With Chase, you can only downgrade to cards within the same family. You cannot downgrade from a Chase-branded card to a co-branded card, like The World of Hyatt Credit Card or The New United℠ Explorer Card. You also cannot downgrade from a personal credit card to a business credit card.
The downgrade path from a Sapphire Preferred or Sapphire Reserve includes the Chase Freedom Flex®, Freedom Unlimited, or Chase Freedom with Ultimate Rewards (which is commonly referred to as the “old Freedom”). If you have never had the Freedom Flex or Freedom Unlimited, the old Freedom may be your best bet for a downgrade because it is no longer open to new applicants, so you aren’t missing out on a future welcome bonus. Having the old Freedom will not exclude you from applying for the Freedom Flex or Freedom Unlimited to earn a bonus.
When Can You Apply For A New Card After Downgrading?
The general recommendation is to wait about a week after downgrading before applying for a new card. But there have been reports of new card approvals just four days after downgrading.
If you cancel instead of downgrading, you will need to wait longer than a week to apply for a new Sapphire card. When you cancel, the recommended advice is that it takes at least one statement cycle, or around a month, for the cancelled card to clear out of the bank’s system. If you apply too soon, you’ll likely be denied for being an existing cardholder, even though you just cancelled.
With the excellent Sapphire Preferred current welcome offer only available for a limited time, waiting to reapply after canceling could mean missing out if the bonus offer ends. The shorter window of time needed for a downgrade increases your chances of the bonus offer still being available.
Make Sure You’re Bonus-Eligible
Before you apply for a new Sapphire card, you’ll want to make sure that you meet the eligibility requirements for a new card. Here are the two main restrictions for the Sapphire Preferred:
5/24 rule: If you have been approved for five or more personal credit cards in the last 24 months, you’ll likely be denied a new Chase card. You must be under 5/24. This rule is not specific to just cards you have from Chase — cards from other banks count toward 5/24.
48-month rule: If you received a new cardmember bonus on any Sapphire credit card within the last 48 months, you are not eligible for a welcome offer on a new Sapphire card.
Bottom Line
Downgrading your Chase credit card isn’t just about saving on annual fees, but it’s a savvy way to protect your credit, hold onto your points, and become eligible for future welcome offers.
If you’re eyeing the Chase Sapphire Preferred® Card’s sweet, sweet welcome offer, don’t cancel your current card and risk missing out. A quick downgrade could be the key to unlocking big rewards, with way less hassle.
