If you travel often, then you may have decided to get The Platinum Card® from American Express. It's loaded with perks like 5X rewards on hotel and airline bookings, and its generous welcome offer allows you to score a pile of bonus points that might cover the cost of an upcoming trip. The card also offers more than $1,500 in spending credits that can put serious cash back in your pocket (terms apply).

The problem with the Amex Platinum Card, though, is the costly annual fee. At $695 (see rates and fees), it's certainly on the expensive side as far as travel rewards credit cards go. So if your travel-related needs have changed, and you're no longer booking flights and hotels as often as you once did, then you may no longer want to pay $695 a year just to keep the Amex Platinum Card in your wallet.

RewardsEarn 5X Membership Rewards® Points for flights booked directly with airlines or with American Express Travel up to $500,000 on these purchases per calendar year and earn 5X Membership Rewards® Points on prepaid hotels booked with American Express Travel. Earn 1X Membership Rewards® Points on other purchases. Terms and limitations apply.

Welcome OfferEarn 80,000 Membership Rewards® Points after you spend $8,000 on eligible purchases on your new Card in your first 6 months of Card Membership.

Now, you might assume that canceling the Amex Platinum Card is your only choice. But there's another avenue it pays to explore -- one that could be a lot better for your credit score and lead to less of a hassle.

Before you cancel, see if you can downgrade

When you downgrade a credit card, you're asking your issuer to swap an existing card for a lower-tier card within its product line. To downgrade any credit card, simply call your issuer and ask what options you have for a downgrade.

With the Amex Platinum Card, you may decide to go from that card to the American Express® Gold Card. The card offers 4X points at restaurants worldwide and U.S. supermarkets, plus 3X points on flights booked directly with airlines or on AmexTravel.com. It also offers over $400 in spending credits, including dining options and Uber. Terms apply.

And with an annual fee of $325 (see rates and fees), it takes a lot less spending to recoup the cost of having the card than the Amex Platinum Card.

RewardsEarn 4X Membership Rewards® Points at Restaurants, plus takeout and delivery in the U.S. (on up to $50,000 per calendar year in purchases), and earn 4X Membership Rewards® points at U.S. supermarkets (on up to $25,000 per calendar year in purchases, then 1X). Earn 3X Membership Rewards® points on flights booked directly with airlines or on amextravel.com.

Welcome OfferEarn 60,000 Membership Rewards® Points after you spend $6,000 on eligible purchases on your new Card in your first 6 months of Card Membership. Plus, receive 20% back in statement credits on eligible purchases made at restaurants worldwide within the first 6 months of Card Membership, up to $100 back. Limited time offer. Offer ends 11/6/24.

There may also be another less expensive Amex card you can downgrade to. Calling to discuss your options could help you make the right choice.

At this point, you may be wondering why you should bother downgrading a card when you can just cancel it instead. And a big reason boils down to preserving your credit score.

When you cancel a credit card, it could negatively impact your credit utilization, or the amount of available credit you're using at once. It's generally best to keep your credit utilization to 30% of your total spending limit.

If you cancel a credit card with a $10,000 limit, it could drive your utilization upward because you have a lower cap to work with. If you downgrade a credit card and keep your same $10,000 spending limit, albeit on a different card, your utilization shouldn't be negatively affected if your balance stays the same.

Also, in some cases, when you downgrade a credit card, your issuer will let you transfer recurring bills set to pay automatically onto your new card. This helps you avoid the hassle of setting up those payments all over again.

The Amex Platinum Card is a fabulous option for people who travel a lot because in addition to the benefits mentioned above, it also gives you access to well over 1,000 airport lounges (terms apply). But if your days of frequent travel have come to an end or slowed down significantly, then shelling out $695 a year may no longer make sense. Before you cancel the card, though, see if there's another option in the Amex family that works for you.