Why I Recently Downgraded (Instead of Closing) My Amex Delta SkyMiles Gold Card

I opened my Delta SkyMiles® Gold American Express Card in 2011. I was young and eager, fresh out of college and ready to start my life as a true card-carrying "adult." I can't remember now what drew me in, but I suspect the card was offering a welcome bonus that I thought would be an excellent way to fund a relaxing vacation.

The card had an annual fee, but it was less than $100 a year, and the card's benefits seemed worth paying for. After all, every time I booked a vacation (once or twice a year) I would use the card, if for no other reason than to take advantage of the free checked baggage benefit.

But alas, I finally hit my breaking point for a couple key reasons. Find out why I downgraded to the no annual fee Delta SkyMiles® Blue American Express Card (see rates and fees).

The checked baggage benefit is great -- when you use it

The Delta SkyMiles® Gold American Express Card includes your first checked bag free on flights booked with your card. This benefit applies for up to eight passengers on the same reservation. Terms apply.

Delta charges $35 each way for the first checked bag. This benefit saves cardholders a minimum of $70 traveling solo on a roundtrip flight. If you travel in groups, it could save you (and your party) up to $560 per trip! I always travel with at least one other person on my reservation, so I was saving a minimum of $140 per trip with this benefit alone.

Prior to February 2024 when the annual fee was sub-$100, the math worked out. Now, the card charges a $0 introductory annual fee for the first year, then $150. (See rates and fees.) So even after that annual fee kicks in, it's possible to see how you could make your annual fee back each year with this benefit. But that's no longer the case for me.

The problem? I've become a bit jaded about flying with Delta for every trip. The airline is fine, sure. But does it always have the shortest, most convenient routes and the best prices? Absolutely not.

For my next trip in early 2025, I booked direct flights with Southwest instead. Not only were they cheaper than Delta flights, but Delta wasn't offering any direct routes to my destination. Even better? Southwest gives passengers their first two checked bags for free -- no need for a free checked bag benefit.

If that's the only trip I take in 2025, I won't have used my most valuable (to me) Delta SkyMiles® Gold American Express Card benefit at all, thus paying an annual fee essentially for nothing.

Travel rewards credit cards offer a host of benefits, from free checked baggage to airport lounge access -- and more. Click here for a list of our favorite travel rewards cards to find one that's a good fit for your travel lifestyle.

Why not just cancel?

I could have called American Express to cancel my card outright, but I had a better idea. The Delta SkyMiles® Gold American Express Card was one of my oldest card accounts, and my credit limit on the card was quite high. So by canceling, I would harm:

• My length of credit history (which makes up 15% of my FICO® Score)
• Amounts owed (30% of FICO® Score)

Say I'm carrying a $5,000 balance across all my cards and have total available limits of $35,000. That makes my credit utilization ratio about 14%, which is fine in the eyes of FICO.

Now, say I cancel my Delta SkyMiles® Gold American Express Card, and with it goes $20,000 of available credit. I now have a $5,000 balance with only $15,000 available, making my credit utilization 33% -- beyond the 30% FICO recommends to maintain a healthy credit score.

Downgrade for the win

While the Delta SkyMiles® Blue American Express Card doesn't come with the free checked baggage benefit, it does come with a $0 annual fee, so I won't have to worry about paying for it yearly even if I don't use the benefits.

Downgrading to the no annual fee version of the card lets me keep the account open, keep my current credit limit and account history, and eliminate an annual fee from my budget. It's a win-win-win!

It was also an incredibly easy process. All I had to do was log into my American Express account online and initiate a customer service chat to tell American Express what I wanted to do. A customer service rep approved the change for me immediately, and I didn't get any sales pitches or deal offers to try to convince me to keep the card.

The bottom line

Sometimes, it makes sense to pay an annual fee for a card that you're getting good value out of. In my case, the value dried up, so I traded down to a card that won't cost me anything to own.

If you have any cards with annual fees, look through the card benefits, do the math, and ensure you're not throwing money away on annual fees. If you find you're not using your card benefits to their fullest extent, check out our list of the best no annual fee credit cards and consider switching or downgrading.