Considering canceling your credit card? Here's why you might want to "downgrade" it instead

Your credit card's annual fee is due. For one reason or another, you've decided that it's not worth paying the fee to keep your card for another year. Or maybe it's a credit card you no longer use or want, so you're considering closing the account.Your first inclination might be to cancel your card. However, other options exist: You could downgrade or product change your card instead.Wondering what those options are and how they work? Let's look at what goes into the decision. Then you can make an informed choice to cancel, downgrade or product change your credit card.What is downgrading a credit card?Downgrading is when you switch your credit card to one that earns the same type of rewards but has a lower (or no) annual fee.Here's an example: I previously held the United℠ Explorer Card (see rates and fees) but wasn't flying United much, so the $150 annual fee ($0 introductory annual fee for the first year) wasn't worth it to me.I downgraded this card to the United Gateway℠ Card (see rates and fees), which has no annual fee.GUIDO MIETH/GETTY IMAGESBoth cards earn United Airlines miles, so they're in the same family. I downgraded my card, but didn't need to open a new card. I also k...