Reasons to Keep a Credit Card for at Least One Year Before Closing or Downgrading
Why Keeping a Credit Card for a Year is Important
If you are considering closing or downgrading a credit card, waiting at least one year before doing so can protect you from losing valuable welcome offers and rewards.
Risks of Closing a Card Too Soon
Closing or downgrading your card within the first year could result in the loss of any rewards earned through welcome offers.
Card issuers may take back bonus rewards, leading to a negative rewards balance even if rewards have been redeemed.
Impact on Your Relationship with the Card Issuer
Closing a card too soon may lead to being blacklisted by the card issuer, affecting future credit card applications and possibly resulting in the closure of other accounts.
Waiting for the full 12 months can help maintain a positive relationship and prevent potential consequences.
Managing Annual Fees
To avoid paying annual fees or impacting your credit card benefits, waiting for 12 months before taking action and contacting the card issuer within 30 days of the annual fee can help secure a refund.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.