Upset Over Your Credit Card’s New Terms? Don’t Cancel Yet

Notably, major issuers like Chase and American Express overhauled their flagship premium cards in 2025, increasing their annual fees — in some cases by more than $200 — and making substantial changes to benefits. Less-traditional cards weren’t immune either. For instance, last year the rent payments company Bilt announced a reboot of its portfolio and rewards structure, which took effect early in 2026.

Beyond product updates, cardholders have had to navigate multiple acquisitions and mergers, in which cards have changed hands to new issuers and/or customers have been moved to new products. For example, in May 2025, Capital One acquired Discover, and while so far the effects have been limited mostly to debit cards, Capital One's consumer credit cards could eventually see changes. Similarly, Citi took over Barclays' American Airlines portfolio, meaning changes are on the way for many current Barclays customers.

Such upheaval can be frustrating, and especially in cases where fees increase or rewards and perks change substantially, it can lead to a knee-jerk decision to cancel a credit card. That might be the right call if the card no longer fits your needs. But there are factors to consider before canceling, including when exactly the changes are happening, what the impact might be on your credit scores, and whether your rewards will be affected.

Here’s what to do before canceling your card.

See whether the math still makes sense

When deciding whether to cancel a card, John Cabell — managing director of payments intelligence at J.D. Power — says cardholders should “review their spend in the context of the rewards, benefits, annual fees and credits offered by the issuer to make sure they are centering on the core value offered by the product.”

Significant changes to a card might mean its core value no longer holds — or it might mean that value is enhanced, in cases where new perks cover some of your spending costs.

For instance, many benefit changes to premium cards in 2025 came in the form of “coupon book”-style statement credits that are doled out incrementally. And while using those statement credits can be cumbersome, if you’re already paying for a service or subscription (e.g., Uber, Apple TV+, DashPass, Peloton), your card will now save you money on those purchases you're making anyway. In some cases, those credits may help offset annual-fee increases.

Consult your calendar

Depending on the issuer and your card renewal date, you might not actually see any changes to your card for a year or more after a new term is announced.

For example, although American Express' premium travel card increased its annual fee in fall 2025, cardholders who opened their accounts before then were locked into their current lower annual fee until their next renewal date. That meant many cardholders had at least a year before the higher fee kicked in, and thus no reason to rush into a decision about whether to keep the card.

Similarly, in 2025 Chase’s premium travel card announced adjustments to how points were valued when redeemed for travel. But for those who applied for the card before June 23, 2025, points earned before Oct. 26 of that year were still subject to the previous redemption rules until late 2027.

Consider an alternative to closing the card

Beyond losing benefits and rewards, closing a credit card can have implications for your credit profile; it can affect your average age of credit accounts, your credit mix and your credit utilization ratio, all of which are factors that affect your credit scores.

According to Cabell, keeping a card open, even if you don’t plan to use it regularly, can be beneficial because it can help your credit and offer spending flexibility down the line. Even still, he says, “that potential upside may be less compelling if the card no longer fits your lifestyle, such as when it’s tied to a retailer you no longer shop with."

If you're sure you don't want to keep the card, consider downgrading it to a different card in the same issuer portfolio, one that might offer a lower annual fee. Typically, you'll avoid any negative effects on your credit this way: You'll usually retain the same account number (and thus its age and history), while avoiding a hard inquiry on your credit, since you're not opening a "new" account.

Or you can call your issuer to ask for a retention offer, which are incentives — such as waived annual fees, bonus points, statement credits or better terms — that issuers will sometimes grant you to keep you as a cardholder.

Have a plan for your rewards

When you cancel a general-purpose rewards credit card, you're likely to lose any unused rewards you’ve earned, so have a plan to redeem them beforehand. If it's a cash-back card, for instance, go ahead and redeem your rewards as a direct deposit, statement credit or check before closing the account.

Note that co-branded travel cards — those linked to a specific airline or hotel — work differently. Once your rewards are transferred to the partner program, you generally won’t lose them, even if you cancel your card.

The article Upset Over Your Credit Card’s New Terms? Don’t Cancel Yet originally appeared on NerdWallet.