Should You Cancel or Downgrade? Portfolio Cleanup Guide

Too many cards dilute rewards and attention. Clean up smartly.

Signal: Downgrading instead of cancelling preserved 5+ years of credit age for most PerkPilot members while removing ₹40k in annual fees.

Decision Tree

1. Is the card your oldest account? If yes, try downgrading to lifetime-free rather than cancelling.
2. Do you earn ≥2× fee in guaranteed value? If no, request retention or downgrade.
3. Will cancellation drop overall credit limit by >25%? If yes, get a limit increase elsewhere first.

Portfolio Audit Sheet

Card	Opened	Fee	Last year value	Utilization role	Decision
HDFC Regalia	2018	₹2,500	₹10k	Backup limit	Keep
Amex MRCC/)/)/)/)	2021	₹1,000	₹3k	Dining offers	Downgrade to lifetime-free variant
Axis Magnus/)/)/)	2022	₹11,800	₹18k	Primary travel	Retention call

Actions

• Call issuer 60 days before renewal; ask for fee waiver, bonus points, or downgrade option.
• If they refuse, redeem points, download statements, and send written closure request.
• Monitor credit report to ensure closure is reported correctly.

Documentation Pack

• Final statement with zero balance.
• Screenshot/email confirming closure or downgrade.
• Ticket/Case ID from customer support.
• Note the date bureau should reflect closure (usually next cycle); verify on CIBIL/CRIF.

When to Cancel Immediately

• Fraudulent merchant disputes where the issuer refuses support.
• Cards whose benefits overlap entirely with better ones, and the issuer offers no downgrade path.
• Products that force you to maintain unwanted relationships (e.g., low-value linked savings accounts).

Next Steps

1. List all cards with age, fee, and value in a spreadsheet.
2. Prioritize clean-up starting with the costliest/least-used cards.
3. Set calendar reminders for renewal months so decisions aren’t rushed.