Author Topic: Should we downgrade credit card?  (Read 3442 times)

MountainTown

  • Bristles
  • ***
  • Posts: 269
Should we downgrade credit card?
« on: May 28, 2017, 04:11:00 PM »
We got the Delta American Express card for the 50,000 mile bonus and $100 credit. It served us well and got us at least one flight and now we have a few miles leftover but not enough to get us far. We will have to pay the fee if we don't downgrade next week. We are awfully new to the concept of travel hacking and aren't quite ready to dive in feet first on that. I'm curious what people recommend? Is it better to take the fee hit? Or downgrade and then move on to another credit card with signing bonus? How do you rack miles on both cards? Or is it only necessary to do so on one?

I know that's a lot of questions so mainly I am wondering if the strategy is to get the bonus miles and then downgrade to avoid the $100 a year in fees. At this point I don't see how it's worth it for us. We really aren't racking enough miles to justify a flight...and the free baggage isn't really necessary. Thoughts?


pbkmaine

  • Walrus Stache
  • *******
  • Posts: 8927
  • Age: 67
  • Location: The Villages, Florida
Re: Should we downgrade credit card?
« Reply #1 on: May 28, 2017, 04:33:03 PM »
Call them and tell them you want to cancel. It's quite likely they will waive the fee.

Haitianwarrior

  • 5 O'Clock Shadow
  • *
  • Posts: 1
Re: Should we downgrade credit card?
« Reply #2 on: May 28, 2017, 05:00:24 PM »
I don't trust credit company at all. I have 2 percent cash back credit card with bofa that has a 17 apr, some people may play with it, but it's a trap if you don't have enough to pay it full at the end of the month.

Sent from my Moto G (5) Plus using Tapatalk


bacchi

  • Walrus Stache
  • *******
  • Posts: 7056
Re: Should we downgrade credit card?
« Reply #3 on: May 28, 2017, 06:38:19 PM »
Cancel it. Have your spouse/partner apply for the same card in a few weeks for another 50/60k miles.

Very few credit cards are worth the annual fee.

MountainTown

  • Bristles
  • ***
  • Posts: 269
Re: Should we downgrade credit card?
« Reply #4 on: May 28, 2017, 10:21:28 PM »
Isn't it going to hit her credit it if we cancel it? It's her only card...is it possible to just downgrade/

GizmoTX

  • Handlebar Stache
  • *****
  • Posts: 1450
Re: Should we downgrade credit card?
« Reply #5 on: May 29, 2017, 08:51:29 AM »
Definitely do not cancel until you've replaced it with another card, which includes downgrading, or raised the credit limit on another card, else your credit score will suffer. Utilization is important. So is the age of the oldest account.

Barclaycard waived its fee for us on the AAviator card for 2 years but not this year; DH, DS, & I each had one. Since DS only has a few credit cards, he was able to get the credit limit raised on one of his no fee reward cards, then cancelled his Aviator. If he finds he needs an AA card later for the free checked bags, better boarding group, & 2x AA miles, then he can apply for the Citi version & get its bonus miles. We simply cancelled ours because we have cards with a total very large limit & are lifetime Platinum members. Several years ago we downgraded our Citi AAdvantage cards to no fee Citi Double Cash cards which pay 2x on everything, but Citi also agreed to 'age' the cards the same as the AAdvantage cards we were cancelling, which meant our credit score wouldn't be hit. The Double Cash card is the one we now use the most but although it calls itself World Elite, it (and the Citi AAdvantage card) charges foreign transaction fees. Barclaycard, BOA, Chase, & CapitalOne do not.

Catbert

  • Magnum Stache
  • ******
  • Posts: 3298
  • Location: Southern California
Re: Should we downgrade credit card?
« Reply #6 on: May 29, 2017, 01:05:55 PM »
Call them and tell them you want to cancel. It's quite likely they will waive the fee.

Flyer Talk Forums is the best place to check to who's giving what retention bonuses.  Unless you've charged a lot in the past year small chance:
 http://www.flyertalk.com/forum/american-express-membership-rewards/1812751-american-express-retention-offers.html

I would downgrade unless you plan on traveling enough on Delta this coming year to make free luggage worth it.