Downgrade or Convert to these Credit Cards

This post is a combination of my recommendations and the recommendations from readers.  Thank you for contributing to this post.  The big question is, why should you downgrade or convert a credit card instead of closing it outright?

Pros of downgrading or converting a credit card:

• Downgrading/converting your credit card lengthens the average age of your credit card accounts and improves your credit score (learn more about your credit score here).
• Downgrading/converting your credit card keeps your credit utilization ratio lower, which is good for your credit score (see link above).
• Downgrading/converting your credit card keeps your miles/points from expiring or being forfeited back to the credit card company.
• Downgrading/converting your credit card results in no hard pull of your credit report.
• Downgrading/converting your credit card is sometimes easier than outright applying.
• Downgrading/converting your credit card makes it possible to get the same credit card multiple times (like 2 Chase Freedom or Bank of America Better Balance Reward cards).
• Downgrading/converting your credit card may result in a sign up bonus on the new card (sometimes not, see cons below).

Cons of downgrading or converting a credit card:

• Downgrading/converting your credit card may result in not get a sign up bonus for the new credit card.
• Downgrading/converting your credit card may take a long time for the conversion process (Citi takes 60+ days).
• Downgrading/converting your credit card may cause you to have “too much available credit” and may make it harder to be approved for future credit cards (mostly Barclays, but you can do recon calls to reverse their decision).
• Downgrading/converting your credit card may interfere with the “churnability” of the credit card.

To read the full article, please click here.  Gotta go watch the Little League World Series now.