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?
May 23, 2013, 10:45 am
#106
Join Date: Apr 2009
Location: CLD
Programs: ua S, marriott P, hilton G, ihg P
Posts: 579
Since you use your CSP for everyday spend, what did your 7% dividend come out to this year? If it was over 9000 UR points, you've made up the annual fee already.
But if you def want to close it, sounds like a good plan to open an Ink as you wont lose transfer privileges.
But if you def want to close it, sounds like a good plan to open an Ink as you wont lose transfer privileges.
I think of the 7% as part of the deal, not something extra. Funny the CS rep. said the exact same thing. I said to her 'nice try though'.
May 24, 2013, 7:53 am
#107
Join Date: Jan 2013
Posts: 96
Assuming you didn't have another card that earns bonuses in similar categories, you would only need to spend $4750 in a year in travel/dining to pay for the annual fee if you value UR points at 2 cents a piece. If you value a UR point differently, that changes the calculation. If you have other cards with similar bonus categories, that changes the calculation as well. Just make sure you're actually better off getting a new card (aside from the signup bonus) versus sucking it up and paying the AF.
May 25, 2013, 12:11 am
#108
Join Date: Apr 2009
Location: CLD
Programs: ua S, marriott P, hilton G, ihg P
Posts: 579
That's a good point. However, I charge airfare to the airline cc, accommodation to the hotel cc. The only travel-related charge left is probably rental car. That won't cut it. Besides, there are other cards out there you can put travel charges, like amex. So this card is a goner.
I'd look at it a little differently. Are the bonus points you are earning in travel and dining adding up to more than the fee? It seems like a lot of people are violently oppose to paying AF, but are you better off avoiding the fee and putting the spend on a different card?
Assuming you didn't have another card that earns bonuses in similar categories, you would only need to spend $4750 in a year in travel/dining to pay for the annual fee if you value UR points at 2 cents a piece. If you value a UR point differently, that changes the calculation. If you have other cards with similar bonus categories, that changes the calculation as well. Just make sure you're actually better off getting a new card (aside from the signup bonus) versus sucking it up and paying the AF.
Assuming you didn't have another card that earns bonuses in similar categories, you would only need to spend $4750 in a year in travel/dining to pay for the annual fee if you value UR points at 2 cents a piece. If you value a UR point differently, that changes the calculation. If you have other cards with similar bonus categories, that changes the calculation as well. Just make sure you're actually better off getting a new card (aside from the signup bonus) versus sucking it up and paying the AF.
May 25, 2013, 11:20 am
#109
Join Date: Jun 2012
Location: In CT,left my heart in Leicester.
Programs: Work in progress.
Posts: 1,237
There's some good advice given in this thread.
I'd go with the downgrade and reapply.
I plan to that as well next month, and then I'll just hold on to the MC Sapphire.
That way, I'll have a card that I am paying the annual fee on (looks good to Chase) and I will not have lost the CL or the history from closing the regular CSP.
I'd go with the downgrade and reapply.
I plan to that as well next month, and then I'll just hold on to the MC Sapphire.
That way, I'll have a card that I am paying the annual fee on (looks good to Chase) and I will not have lost the CL or the history from closing the regular CSP.
May 25, 2013, 1:47 pm
#110
Join Date: Sep 2011
Posts: 176
I don't understand all the shorthand I'm seeing here, but I have a question similiar to OP..... I have the freedom,and the sapphire- I would like to cancel the sapphire before I have to pay the fee,as I don't use it much right now-
But this will mean I can;'t transfer the UR points to many things if I cancel...right? So there really is no alternative card that will keep that benefit,and have no fee?
This is my question.
But this will mean I can;'t transfer the UR points to many things if I cancel...right? So there really is no alternative card that will keep that benefit,and have no fee?
This is my question.
May 25, 2013, 2:39 pm
#111
Join Date: Jun 2012
Location: In CT,left my heart in Leicester.
Programs: Work in progress.
Posts: 1,237
I don't understand all the shorthand I'm seeing here, but I have a question similiar to OP..... I have the freedom,and the sapphire- I would like to cancel the sapphire before I have to pay the fee,as I don't use it much right now-
But this will mean I can;'t transfer the UR points to many things if I cancel...right? So there really is no alternative card that will keep that benefit,and have no fee?
This is my question.
But this will mean I can;'t transfer the UR points to many things if I cancel...right? So there really is no alternative card that will keep that benefit,and have no fee?
This is my question.
You have to have the Ink Bold, Plus, or the Sapphire Preferred. in order to be able to transfer UR points.
The strategy most use is -Downgrade the Sapphire to Freedom and then apply for the Bold or the Plus or Sapphire Mastercard.
Ofcourse, you're always free to transfer the points out and then cancel the card.
Holding on to the card and applying for a new card has two advantages.
1. If you're not approved right away, you can use the current card as a bargaining chip by offering to downgrade it then, and transfer the Credit Limit(CL) over to the new card. OR
2. If you're approved for the new card, THEN downgrade the old one and you will still have the CL from the old one and the history.
Last edited by jatink129; May 28, 2013 at 12:12 pm
May 28, 2013, 11:51 am
#112
Join Date: Sep 2011
Posts: 176
but if I keep my original Sapphire, and apply for another in the UR family, then I'll have 2 annual fees,right?
May 28, 2013, 12:12 pm
#113
Join Date: Jun 2012
Location: In CT,left my heart in Leicester.
Programs: Work in progress.
Posts: 1,237
I edited that last bit...what I meant to say was : If you're approved for the new card, THEN downgrade the old one and you will still have the CL from the old one and the history.
Jun 8, 2013, 7:07 pm
#114
Join Date: Mar 2013
Location: Tampa, FL
Programs: SPG Plat, Marriott Plat, Hyatt Diamond, IHG Plat
Posts: 194
Chase Sapphire Preferred - Keep, Downgrade, or Cancel?
I am coming up on my one year mark with the Chase Sapphire Preferred. The first year the annual fee was waived, but this year I'll have to pay. I'm trying to decide if I should cancel, downgrade to the no-fee version, or pay the fee. I've tried twice to negotiate the annual fee of $95, but no dice.
I also just got the Chase Ink Bold, so I won't lose the ability to transfer my points to travel partners. I was thinking of downgrading so I can still take advantage of the 3x points for dining on friday. I will lose 2x points on travel, but I already have the Amex Business Gold (3x points on airfare, 2x points on gas) and the Ink Bold (2x points at gas stations and hotels). I won't get points on parking or car rentals, though, which was nice.
Normally I would just cancel the card, but I heard Chase cards are hard to get back. Plus, if I keep the sapphire, I still get the 3x on dining.
I know if I don't do the annual fee I will lose out on the 7% points bonus, but since I got the card in July I already got my 7% for my 40k points.
Thoughts. I'm hoping others in the same situation can give their advice.
Thanks!
I also just got the Chase Ink Bold, so I won't lose the ability to transfer my points to travel partners. I was thinking of downgrading so I can still take advantage of the 3x points for dining on friday. I will lose 2x points on travel, but I already have the Amex Business Gold (3x points on airfare, 2x points on gas) and the Ink Bold (2x points at gas stations and hotels). I won't get points on parking or car rentals, though, which was nice.
Normally I would just cancel the card, but I heard Chase cards are hard to get back. Plus, if I keep the sapphire, I still get the 3x on dining.
I know if I don't do the annual fee I will lose out on the 7% points bonus, but since I got the card in July I already got my 7% for my 40k points.
Thoughts. I'm hoping others in the same situation can give their advice.
Thanks!
Jun 8, 2013, 8:21 pm
#115
Join Date: Apr 2004
Programs: AA plt 2 mm, Marriott LTT, HH dia
Posts: 1,215
I plan on converting to a Chase Freedom when my CSP anniversary comes up. That card has no annual fee, and the account would remain open with Chase.
Jun 8, 2013, 8:23 pm
#116
Join Date: Mar 2013
Location: Tampa, FL
Programs: SPG Plat, Marriott Plat, Hyatt Diamond, IHG Plat
Posts: 194
I forgot to mention I also have a Freedom. I didn't know you could convert it to a Freedom, I thought you could only downgrade it to a Sapphire.
Jun 8, 2013, 8:27 pm
#117
Join Date: Jul 2011
Location: SF Bay Area
Programs: UA MileagePlus (Premier Gold); Hilton HHonors (Gold); Chase Ultimate Rewards; Amex Plat
Posts: 6,680
All depends on how much you spend on the card, and what type of spend you're racking up.
For me, the ability to book airfares through Travelocity for example, gives 2 points per dollar base + 2 bonus points per dollar = 4 points per dollar. With the Sapphire Preferred, I'm getting 4 points/dollar * 1.25 cents/point * 1.07 dividend point/point = 5.35 cents/dollar back. That's 2.35% extra that I wouldn't have with the regular Sapphire.
Then there's the foreign transactions. When I took a trip to Korea last year, it cost me over $10000 and I pocketed about $300 worth of points thanks to the 2 points per dollar on travel and dining and 0% foreign transaction fees. That one trip alone made it more than worth it (and I had other foreign trips in addition to that one).
For me, the ability to book airfares through Travelocity for example, gives 2 points per dollar base + 2 bonus points per dollar = 4 points per dollar. With the Sapphire Preferred, I'm getting 4 points/dollar * 1.25 cents/point * 1.07 dividend point/point = 5.35 cents/dollar back. That's 2.35% extra that I wouldn't have with the regular Sapphire.
Then there's the foreign transactions. When I took a trip to Korea last year, it cost me over $10000 and I pocketed about $300 worth of points thanks to the 2 points per dollar on travel and dining and 0% foreign transaction fees. That one trip alone made it more than worth it (and I had other foreign trips in addition to that one).
Jun 9, 2013, 12:09 am
#118
Join Date: Jul 2009
Location: ORD
Programs: American Airlines EXP, Marriott Titanium, Hyatt Globalist
Posts: 410
I am coming up on my one year mark with the Chase Sapphire Preferred. The first year the annual fee was waived, but this year I'll have to pay. I'm trying to decide if I should cancel, downgrade to the no-fee version, or pay the fee. I've tried twice to negotiate the annual fee of $95, but no dice.
I also just got the Chase Ink Bold, so I won't lose the ability to transfer my points to travel partners. I was thinking of downgrading so I can still take advantage of the 3x points for dining on friday. I will lose 2x points on travel, but I already have the Amex Business Gold (3x points on airfare, 2x points on gas) and the Ink Bold (2x points at gas stations and hotels). I won't get points on parking or car rentals, though, which was nice.
Normally I would just cancel the card, but I heard Chase cards are hard to get back. Plus, if I keep the sapphire, I still get the 3x on dining.
I know if I don't do the annual fee I will lose out on the 7% points bonus, but since I got the card in July I already got my 7% for my 40k points.
Thoughts. I'm hoping others in the same situation can give their advice.
Thanks!
I also just got the Chase Ink Bold, so I won't lose the ability to transfer my points to travel partners. I was thinking of downgrading so I can still take advantage of the 3x points for dining on friday. I will lose 2x points on travel, but I already have the Amex Business Gold (3x points on airfare, 2x points on gas) and the Ink Bold (2x points at gas stations and hotels). I won't get points on parking or car rentals, though, which was nice.
Normally I would just cancel the card, but I heard Chase cards are hard to get back. Plus, if I keep the sapphire, I still get the 3x on dining.
I know if I don't do the annual fee I will lose out on the 7% points bonus, but since I got the card in July I already got my 7% for my 40k points.
Thoughts. I'm hoping others in the same situation can give their advice.
Thanks!
I have the CSP, Ink Plus and Ink Bold today. My long-term plan plan is to keep the CSP as my card to transfer to UR partners, and downgrade Ink Plus/Bold to regular Ink (dropping the other if needed to get another Chase card). This gives me the 5x UR for telecomm, office supply stores, but I get to keep the broader travel bonus categories of the CSP and the 7% annual div.
Jun 9, 2013, 4:58 pm
#119
Join Date: Aug 2012
Location: BOS
Programs: Chase Ultimate Rewards
Posts: 624
Jun 9, 2013, 5:35 pm
#120
Join Date: Jul 2011
Location: SF Bay Area
Programs: UA MileagePlus (Premier Gold); Hilton HHonors (Gold); Chase Ultimate Rewards; Amex Plat
Posts: 6,680
Neither of the cards has 3x on dining. Both cards have 2x on dining, but only the Preferred has 2x on travel, no foreign transaction fees, a 7% points dividend, 1.25 cents per point when redeeming for travel on Ultimate Rewards, and ability to transfer points to partner travel programs like United MileagePlus.