Mar 7, 2014, 7:25 pm
Last edit by: der_saeufer
Why should I keep my CSP?
When downgrading, the card number does not change, but the expiration date and CVV will. The downgraded account retains the same credit limit and opening date, so it doesn't change AAoA nor count towards 5/24.
What's the best use of UR points?
Possible reasons to keep the card include
For additional details, see the CSP Benefits Guide.
Why should I cancel my CSP?- ability to earn 2 UR points/dollar on travel & dining expenses
- primary insurance coverage on rental cars
- See post #369 for an example of how this has real financial value
- 7% annual dividend (Note that this benefit ends in early 2016 with the award of the 2015 dividend.)
- no forex fees
- ability to transfer points at 1:1 (in many cases instantly) to a wide range of airline & hotel partners
- the potential difficulty in being approved again later for a second CSP
- See this wiki for details
- synergy with Freedom or other Chase card earning UR points
- you are among the few customers who receive a retention bonus offsetting the cost of the annual fee
For additional details, see the CSP Benefits Guide.
Possible reasons to cancel the card include
Why should I downgrade my CSP?- lack of interest in the UR transfer partner programs (or you hold, or will hold, another transfer-eligible premium card, such as the Ink Plus)
- you have a no-fee Freedom card to which you can transfer (and warehouse at no cost) your UR points
- you plan to re-apply & earn a second signup bonus at a later date or with a different first-year-free UR card
- Note: In 2015, Chase UR cards became much more difficult to churn
- you would rather use a 2% cashback card for most spending
- benefits of the card in your particular circumstances are outweighed by the annual fee
Possible reasons to downgrade the card include
What can I downgrade to (no AF), and why would I want to?- Opened a new CSR account for that sweet, sweet bonus. The CSP offers nothing that the CSR doesn't, so there's little point in keeping both--the AF is refunded in full if you downgrade within 60 days. There are conflicting reports of prorated refunds for downgrades >60 days after the fee is charged. AF refunds generally post within a day or two.
- You plan to re-apply & earn a second signup bonus at a later date or with a different first-year-free UR card, but have a UR balance you want to keep
- You're waiting out 5/24 to get CSR and you don't want to pay the CSP AF
- Sapphire (non-preferred). Not much point in this. No UR transfers to partners, 2x on dining, 1x on everything else. This card no longer exists for new customers, but it was still a downgrade option from CSP as of 9/16.
- Freedom. 5x bonus categories, rotating by quarter, 1x on everything else. If you downgrade and activate the bonus, you'll get the bonus retroactive to the beginning of the quarter. When they overlap, you get both (e.g. Jul-Sep '16 restaurants paid with CSP pre-downgrade get base points plus 1 extra from CSP and 4 extra from Freedom)
- Freedom Unlimited. 1.5x on everything.
When downgrading, the card number does not change, but the expiration date and CVV will. The downgraded account retains the same credit limit and opening date, so it doesn't change AAoA nor count towards 5/24.
Please read about/discuss this issue in Best use of Ultimate Rewards points [Consolidated].
Chase Sapphire Preferred - Keep, Downgrade, or Cancel?
Dec 7, 2012, 10:04 pm
#76
Moderator: Chase Ultimate Rewards
Join Date: Apr 2005
Location: SFO
Programs: UA 2P, MR LT Plat, IHG Plat, BW Dia, HH Au, Avis PC
Posts: 5,457
When you wrote "ONLY", did you mean you only keep a single credit card account open at a time?
That's dangerous for your FICO score......
That's dangerous for your FICO score......
Dec 7, 2012, 10:29 pm
#77
FlyerTalk Evangelist
Join Date: Aug 2002
Location: Intermountain West
Programs: Too many to list
Posts: 12,088
Exactly. I think I have 10 or 11 active cards right now. Many have a lot more. Miles & points are calling your name, flygirl12. Maybe she doesn't travel too much and wants the cash-back options.
Dec 7, 2012, 11:24 pm
#78
Moderator: Chase Ultimate Rewards
Join Date: Apr 2005
Location: SFO
Programs: UA 2P, MR LT Plat, IHG Plat, BW Dia, HH Au, Avis PC
Posts: 5,457
Dec 8, 2012, 12:22 am
#79
FlyerTalk Evangelist
Join Date: Jul 2003
Location: Florida
Posts: 29,764
Cannot imagine how one can have a SINGLE CC only. Even if one does not care for miles / points, and only for cash rebates, what happen the card is lost, stolen, especially when you are away from home, dont have enough cash with you... you can be stranded...
You need a back up card at a minimum.
You need a back up card at a minimum.
Dec 8, 2012, 4:38 pm
#80
Used to be garyjr316
Join Date: Feb 2011
Location: LAX or SBA
Programs: AAdvantage, MileagePlus, Gold Passport, Hilton HHonors, Marriott
Posts: 800
Cannot imagine how one can have a SINGLE CC only. Even if one does not care for miles / points, and only for cash rebates, what happen the card is lost, stolen, especially when you are away from home, dont have enough cash with you... you can be stranded...
You need a back up card at a minimum.
You need a back up card at a minimum.
Dec 10, 2012, 6:35 pm
#81
Join Date: Jun 2010
Posts: 117
Okay, I'm not at the 10-15 cards stage (yet...), but I think you need at least 2 cards that are either Visa or Mastercard. Currently, I carry an Amex and a Visa (for where the Amex isn't taken), and then I have one more Visa that I leave at home, just as a backup.
If you don't have an Amex, I can see how you could get away with just two (though there are still the occasional "the machine can't read your card" issues). But I'll add to the chorus here that you do need a backup that you leave at home.
If you don't have an Amex, I can see how you could get away with just two (though there are still the occasional "the machine can't read your card" issues). But I'll add to the chorus here that you do need a backup that you leave at home.
Dec 11, 2012, 1:49 pm
#82
Join Date: Oct 2012
Posts: 771
I don't want to hijack the thread, but is there a thread that explains the option to have freedome card and transfer to CSP? i am interested in racking up UR poitns to transfer to airlines ( IE UA)
Last edited by mia; Dec 11, 2012 at 2:46 pm Reason: Prune quotation
Dec 11, 2012, 2:55 pm
#83
Moderator
Join Date: Jun 2003
Location: Miami, Mpls & London
Programs: AA & Marriott Perpetual Platinum; DL & HH Gold
Posts: 48,958
Chase issues two classes of cards which participate in Ultimate rewards.
Standard cards with no annual fee: Freedom, Sapphire and Ink Classic
Premium cards with an annual fee: Sapphire Preferred, JP Morgan Select, JP Morgan Palladium, Ink Plus, Ink Bold
Only the premium cards permit transfers to airlines, hotels or Amtrak programs. However, points from the standard cards can be "combined" with a premium card. Go to ultimaterewards.com, login, and if you have multiple card accounts linked to the same User ID you will see an option to "Combine Points". Otherwise, click: Manage Ultimate Rewards > Combine Points.
Note that the system will permit you to combine with any Ultimate Rewards account, but if you combine with an account in the name of anyone other than yourself or a spouse/domestic partner you risk having the account closed. See this thread:
http://www.flyertalk.com/forum/credi...-accounts.html
Standard cards with no annual fee: Freedom, Sapphire and Ink Classic
Premium cards with an annual fee: Sapphire Preferred, JP Morgan Select, JP Morgan Palladium, Ink Plus, Ink Bold
Only the premium cards permit transfers to airlines, hotels or Amtrak programs. However, points from the standard cards can be "combined" with a premium card. Go to ultimaterewards.com, login, and if you have multiple card accounts linked to the same User ID you will see an option to "Combine Points". Otherwise, click: Manage Ultimate Rewards > Combine Points.
Note that the system will permit you to combine with any Ultimate Rewards account, but if you combine with an account in the name of anyone other than yourself or a spouse/domestic partner you risk having the account closed. See this thread:
http://www.flyertalk.com/forum/credi...-accounts.html
Dec 11, 2012, 9:26 pm
#84
Join Date: Apr 2004
Programs: AA plt 2 mm, Marriott LTT, HH dia
Posts: 1,215
One card managed well is better for a FICO score than several overdue cards managed badly.
First of all, I don't know the OP, but some people only need to keep open one card. I have a cousin that really should take that advice!
If a person has a history of credit card debt, credit councilors often recommend cutting up the cards. Keeping one card open to make purchases that don't work as well on a debit card or cash is an option in those cases.
Or I also know people who don't like buying things on credit, even if they pay the balance every month. Finally, I think that when people are just establishing credit keeping one card is good as well. Maybe it could help them get used to paying the balance in full every month.
What I am saying is that there may be circumstances that makes it a wise choice for the OP to only keep one card.
Dec 12, 2012, 11:58 am
#85
Join Date: Oct 2012
Posts: 970
If you are spending $10K a year, check out the Amex Blue Cash Preferred. There is $75 Annual Fee, but that is quickly recouped thanks to the ability to effectively get 6% (5% after load fees) on up to $6K a year at grocery stores, so that's $285 net on $6K spend, or an effective 4.75% cb after deducting the $75 fee.
Remember, you can buy gift cards (Visa/MC or Amex) at grocery stores (where Blue Preferred has 6% cb up to $6K a year). Load fees on the gcs are ~1%, so net cb is 5%. You then use those gcs on all your other spend (gas stations, dept stores, restaurants, online etc etc). For someone with $10K spend a year, this seems like a winner.
Blue Preferred also gives 3% cb at gas stations (but only use that if/when your 6% gc limit is reached) and 1% elsewhere.
Before I head to Costco, I make sure to load up on a few Amex GCs from Safeway (or to OD with my Ink) to earn 5% (or 5x) rather than the 2% I get with my Costco Amex.
You have the option of downgrading to the Blue Cash Everyday that has no AF and lower bonus amounts (3% cb at grocery for example). So once you meet your $6K limit ($1500 per quarter) you can downgrade and even get prorated AF rebate.
Remember, you can buy gift cards (Visa/MC or Amex) at grocery stores (where Blue Preferred has 6% cb up to $6K a year). Load fees on the gcs are ~1%, so net cb is 5%. You then use those gcs on all your other spend (gas stations, dept stores, restaurants, online etc etc). For someone with $10K spend a year, this seems like a winner.
Blue Preferred also gives 3% cb at gas stations (but only use that if/when your 6% gc limit is reached) and 1% elsewhere.
Before I head to Costco, I make sure to load up on a few Amex GCs from Safeway (or to OD with my Ink) to earn 5% (or 5x) rather than the 2% I get with my Costco Amex.
You have the option of downgrading to the Blue Cash Everyday that has no AF and lower bonus amounts (3% cb at grocery for example). So once you meet your $6K limit ($1500 per quarter) you can downgrade and even get prorated AF rebate.
Dec 12, 2012, 2:09 pm
#86
Join Date: Sep 2011
Location: Salt Lake City, UT
Posts: 16
Depends on how much your spend annually. If the value of the points are greater than the annual fee, keep it. Else, there are many awesome cards out there with no annual fee. For instance, you could downgrade to the Chase Sapphire.
Feb 11, 2013, 10:39 am
#87
Join Date: Jul 2010
Location: Los Angeles, CA
Programs: Alaska MVP Gold 75K, AA Exec Plat, Hyatt Globalist, Hilton Diamond, Hilton/Marriott Gold
Posts: 47
I called today to downgrade my chase sapphire preferred card to a chase freedom. After completing the process, the agent told me he would send a return envelope for my composite metal card, and he said they were tracking all the cards and expect their return after cancelling or downgrading. Has anyone gotten this before and had to send them back? I really would like to keep it, I keep all my credit cards as souvenirs after they become inactive. I would be sad to see this one go as this is one of the better ones, if not the best after the amex centurion card which is kind of out of my league.. 
Feb 11, 2013, 3:48 pm
#88
Join Date: Feb 2012
Programs: UA, AA, SW, Marriott, SPG, Hyatt, TYN
Posts: 59
I called today to downgrade my chase sapphire preferred card to a chase freedom. After completing the process, the agent told me he would send a return envelope for my composite metal card, and he said they were tracking all the cards and expect their return after cancelling or downgrading. Has anyone gotten this before and had to send them back? I really would like to keep it, I keep all my credit cards as souvenirs after they become inactive. I would be sad to see this one go as this is one of the better ones, if not the best after the amex centurion card which is kind of out of my league..
Feb 12, 2013, 9:57 am
#89
Join Date: Jan 2009
Posts: 41
I kind of regret that they didn't ask, because those cards were difficult to destroy.
Feb 12, 2013, 11:11 am
#90
Join Date: May 2008
Location: SFO
Posts: 851
when i downgraded a year ago they did not ask for it back. i had to use a drill press in the machine shop at my office to put holes in it - tough piece of metal that was..