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.