Is your American Airlines co-branded credit card annual fee coming up, and you're wondering if it's still worth it? Perhaps your travel habits have changed, or the benefits no longer align with your needs. Whatever the reason, downgrading your American Airlines credit card can be a smart move to save on annual fees while preserving your credit history. It's a process often overlooked, but one that can significantly benefit your financial well-being.
Before we dive into the step-by-step guide, let's understand why downgrading might be a better option than simply canceling your card. When you downgrade, you're essentially performing a "product change" within the same bank's credit card portfolio. This means your account history, including the age of the account and your credit limit, remains intact. This is crucial because closing an old credit card can negatively impact your credit score by reducing your overall available credit and shortening your average age of accounts. Downgrading helps you avoid these potential pitfalls while still shedding that hefty annual fee!
Your Step-by-Step Guide to Downgrading Your American Airlines Credit Card
Let's get started on making this a smooth and beneficial transition for you!
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| How To Downgrade American Airlines Credit Card |
Step 1: Assess Your Current Card and Future Needs – Are you ready for a change?
Before you pick up the phone, take a moment to honestly evaluate your current American Airlines credit card. Ask yourself:
What is the annual fee of my current card? Is it a significant amount that you're no longer getting enough value from?
Which benefits do I actually use? Do you regularly utilize lounge access, free checked bags, priority boarding, or annual flight credits? Be honest about what you truly value.
Have my travel patterns changed? Maybe you used to fly American Airlines frequently, but now you fly less, or with other airlines.
What are my financial goals? Are you looking to reduce recurring expenses, simplify your wallet, or optimize your rewards strategy?
Once you have a clear picture of why you want to downgrade, you'll be much better equipped for the next steps.
Step 2: Research Potential Downgrade Options – What's available in the American Airlines family?
American Airlines co-branded credit cards are primarily issued by two banks: Citi and Barclays. The downgrade options available to you will depend on which bank issued your current card.
Sub-heading 2.1: Downgrade Options for Citi® / AAdvantage® Cards
If your American Airlines card is issued by Citi, your primary downgrade option is usually the American Airlines AAdvantage® MileUp® Card. This card typically has:
No annual fee: This is the biggest draw for many looking to downgrade.
Basic earning on American Airlines purchases and at grocery stores: It still allows you to earn AAdvantage miles on everyday spending.
Limited travel benefits: Don't expect perks like free checked bags or priority boarding with this card.
Sub-heading 2.2: Downgrade Options for AAdvantage® Aviator® Cards (Barclays)
If your American Airlines card is issued by Barclays, your downgrade options often include lower-tier Aviator cards. While specific offerings can vary, common options include:
QuickTip: Repeat difficult lines until they’re clear.
AAdvantage® Aviator® Red World Elite Mastercard®: This card usually has a lower annual fee (e.g., $99) compared to higher-tier Aviator cards. It often retains benefits like a free checked bag and preferred boarding.
AAdvantage® Aviator® Mastercard® (no annual fee version): This is the ultimate downgrade for those seeking to eliminate the annual fee entirely, similar to Citi's MileUp card. It will have very few travel benefits.
It's crucial to understand that you can typically only downgrade within the same "card family" and with the same issuer. For example, you can't downgrade a Citi AAdvantage card to a Barclays Aviator card, or vice-versa.
Step 3: Timing is Everything – When is the best time to make the call?
While you can technically request a downgrade at any time, there are a few strategic considerations:
Sub-heading 3.1: Wait at Least One Year
Most credit card issuers, including Citi and Barclays, recommend waiting at least 12 months after opening your card or receiving a significant welcome bonus before attempting a downgrade. Downgrading too soon can sometimes lead to the bank clawing back your sign-up bonus or even blacklisting you from future applications.
Sub-heading 3.2: Before Your Annual Fee Posts
The ideal time to initiate a downgrade is shortly before your annual fee is due to post to your account. This way, you can avoid paying the fee for another year. Even if it posts, many banks offer a grace period (often 30-60 days) to downgrade and receive a full refund of the annual fee.
Step 4: Prepare for the Conversation – What to say to the agent.
Once you've done your research and chosen your desired downgrade option, it's time to call the bank.
Sub-heading 4.1: Gather Your Information
Have your credit card number, account details, and American Airlines AAdvantage number readily available.
QuickTip: Stop scrolling, read carefully here.
Sub-heading 4.2: The "Retention Offer" Play
When you call, you'll want to state that you're considering closing your account due to the annual fee and want to explore your options. This might prompt the customer service representative to offer you a "retention offer." Retention offers are incentives (like bonus miles, statement credits, or a reduced annual fee) designed to keep you as a customer on your current card.
It never hurts to ask for a retention offer. If the offer is attractive enough to justify keeping your current card for another year, it might be a better short-term solution than downgrading. If not, politely decline and proceed with your downgrade request.
Sub-heading 4.3: Be Clear and Concise
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If no retention offer is suitable, clearly state that you wish to downgrade your American Airlines credit card to a specific lower-tier product (e.g., "I'd like to downgrade my Citi® / AAdvantage® Platinum Select® World Elite Mastercard® to the American Airlines AAdvantage® MileUp® Card").
Confirm that your account history and credit limit will remain the same. Also, ask about the effective date of the change and when you can expect your new card.
Step 5: Confirm and Follow Up – Ensuring a smooth transition.
After the call, it's important to confirm the downgrade and take any necessary follow-up actions.
Sub-heading 5.1: Look for Confirmation
Keep an eye out for a confirmation email or letter from the bank detailing the product change. Your online account statement should also reflect the change within a billing cycle or two.
Sub-heading 5.2: Update Autopay and Subscriptions
If your new card has a different card number (which is common with product changes), remember to update any recurring payments or subscriptions linked to your old card.
Tip: Read the whole thing before forming an opinion.
Sub-heading 5.3: Understand Loss of Benefits
Be aware that as soon as your downgrade is processed, you will lose the benefits associated with your higher-tier card. This includes things like free checked bags, lounge access, and any statement credits. If you have any pending benefits or credits you were planning to use, try to utilize them before the downgrade takes effect.
Frequently Asked Questions about Downgrading American Airlines Credit Cards
Here are 10 common "How to" questions related to downgrading your American Airlines credit card, with quick answers:
How to know if I should downgrade my American Airlines credit card?
Assess if the annual fee and benefits of your current card still align with your travel habits and financial goals. If you're no longer utilizing premium perks or want to reduce fees, downgrading is a good consideration.
How to find out my American Airlines credit card downgrade options?
Contact the issuing bank (Citi or Barclays) directly. They can inform you of the specific lower-tier American Airlines co-branded cards available for product change within their portfolio.
How to avoid losing my credit history when downgrading?
Downgrading (a product change) allows you to keep your existing account history, including the age of the account and credit limit, which helps preserve your credit score, unlike outright canceling a card.
How to time my American Airlines credit card downgrade correctly?
Ideally, wait at least 12 months after opening the card or receiving a bonus. Initiate the downgrade request shortly before your annual fee is due to post to your account to avoid paying it.
Tip: Keep the flow, don’t jump randomly.
How to request a retention offer before downgrading?
When calling the bank, express your consideration of closing the account due to the annual fee. This often prompts the representative to offer incentives to keep your current card.
How to prepare for the phone call to downgrade my card?
Have your account information ready, know which card you want to downgrade to, and be prepared to state your reasons clearly and politely.
How to confirm my American Airlines credit card downgrade was successful?
Look for a confirmation email or letter from the bank, and check your online account statement within a billing cycle or two for the updated card details.
How to ensure I don't lose my AAdvantage miles when downgrading?
As long as you are downgrading to another American Airlines co-branded card with the same issuer, your AAdvantage miles balance linked to your AAdvantage account should remain unaffected.
How to handle lost benefits after downgrading my card?
Understand that premium benefits like free checked bags or lounge access will cease upon downgrade. Plan to utilize any such benefits before the change takes effect.
How to update my recurring payments after a card downgrade?
If your new downgraded card has a different card number, remember to update all online subscriptions, bill payments, and stored card details that were linked to your previous card.
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