If you have multiple credit cards with annual fee, you should review [at least once a year] whether all of them are still worth the fee; if not, downgrading to a no fee card is a good idea.
I was reviewing my cards few weeks ago and realized that I didn’t Chase Sapphire Preferred anymore. It was September already and they charged the annual fee in Jun, so I wasn’t sure whether I was going to any any prorated refund; but as I like to say, “you never know until you try.” I looked up online to see what other folks have experienced and found these articles from MillionMileSecrets.com and DoctorOfCredit.com. Knowing there was a chance, first I looked up on what card I wanted to downgrade to – I didn’t want to cancel the card and lose the credit limit. I figured I could take change freedom unlimited because it had no annual fee and unlimited 1.5% cashback. I could also transfer these points to other chase card using ultimate rewards.
I called the customer service and explained the situation, they were willing to do a product transfer (I had owned this card for 3 years, so I wasn’t just trying to use the card for points then get rid of it) but said they don’t do annual fee credit so even though I could do a product transfer now, it’s better to wait till next Jun so I can take advantage of the features that comes with Sapphire card. I wasn’t very keen on that but understood the point.
A week later, new statement generated and I paid the bill in full, like I always do. I decided to call again about the fee refund since I didn’t really like the idea of paying for a card I didn’t need. After going through the same story again, this time I was told that I would get prorated refund. Score! A week later (this morning when I checked), I had the credit in my account.
Since it was a product change, they didn’t do a hard inquiry to my credit. The good thing is, while the other card is in transit, my current card still works!
Next time if you’re talking to a bank agent and are not satisfied with the response, it’s always a good idea to call back again later.