A lot of people assume you should keep every card open forever.

That is not always true.

Sometimes it makes sense to downgrade a card.

Sometimes it makes sense to cancel it entirely.

Here is a simple guide to help you decide.

When Downgrading Makes Sense

If you have a card with a high annual fee and you are not getting enough value from it, a downgrade can save you money while keeping your account history intact.

Most major banks let you downgrade to a no fee or lower fee version of the same card family. This keeps your credit line open, which is good for your credit score.

A downgrade is usually the right move if:

• You no longer use the card for bonus categories

• The benefits no longer fit your lifestyle

• The annual fee outweighs the perks

This lets you keep your account aging while reducing your cost.

When Canceling Makes Sense

Sometimes canceling is the cleaner choice.

You might cancel if:

• You have too many cards in the same bank family

• You want to reset your eligibility for a new card bonus in the future

• You simply do not use the card anymore and there is no downgrade option

Canceling does reduce your total credit line, but if you have a strong overall credit profile, the impact is usually minimal.

Just make sure you redeem or transfer any points you might lose before closing the account.

A Simple Rule to Follow

If the card still gives you value, keep it.

If it does not, downgrade it.

If neither of those options make sense, cancel it.

Credit cards should work for you, not the other way around.

Talk soon,

Your Maestro Concierge

Editors Note: Opinions expressed here are only the author’s and have not been reviewed, approved, or endorsed by any bank, credit card issuer, hotel, airline, or other entity.