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Chase Sapphire Preferred - Keep, Downgrade, or Cancel?

Chase Sapphire Preferred - Keep, Downgrade, or Cancel?

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Old Dec 28, 16, 12:13 am   -   Wikipost
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Why should I keep my CSP?
Possible reasons to keep the card include
  • 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
  • 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.
Why should I cancel my CSP?
Possible reasons to cancel the card include
  • 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
  • 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
Why should I downgrade my CSP?
Possible reasons to downgrade the card include
  • 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
What can I downgrade to (no AF), and why would I want to?
  • 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.
And, of course, if you have CSR you can move the UR earned with the other cards to the CSR and transfer it to partners. Likewise, if you re-apply or PC to CSP, you can transfer points earned with F or FU to partners as well.

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?
Please read about/discuss this issue in Best use of Ultimate Rewards points [Consolidated].
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Old Nov 11, 11, 5:52 pm
  #1  
Original Poster
 
Join Date: Feb 2002
Location: Laguna Niguel, CA USA
Posts: 30
Chase Sapphire Preferred - Keep, Downgrade, or Cancel?

For 8 years I have had a Platinum Card with approx $40K per year in spending. Last year I was visiting the bank and the representative recommended that I upgrade to the Chase Sapphire Preferred. I did not ask or receive any bonus miles to upgrade and I did not realize that there was a $95 annual fee after the first year. I just received my statement and there is the $95 renewal fee….

My questions are:

1. Should I have received bonus miles for upgrading from Platinum to Sapphire Preferred?

2. Should I call and request a waiver of the annual fee for year 2?

3. Should I downgrade back to the Platinum to avoid the annual fee?

4. Will I be able to transfer my 300K miles to an airline using a downgrade card? My original Platinum card did not allow me to transfer miles.

5. Why are there so many posts regarding transferring miles to CO's Program? Is there an advantage to transferring to CO or to UA? I am enrolled in both FF Programs.

Any recommendation would be appreciated.
Max 747400 is offline  
Old Nov 11, 11, 9:31 pm
  #2  
 
Join Date: Nov 2011
Posts: 2
yes, yes, no, no, depends on your preference. I bet if you called in and complained that you didn't get the bonus they'll give it to you. A year ago they would give you an extra 50k (in addition to the normal 50k bonus) if you complained.
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Old Nov 12, 11, 10:32 am
  #3  
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Originally Posted by Max 747400 View Post
5. Why are there so many posts regarding transferring miles to CO's Program? Is there an advantage to transferring to CO or to UA? I am enrolled in both FF Programs..
Until extremely recently you couldn't transfer from Sapphire Preferred to UA, only to CO. It's only been in recent weeks that they finally announced the ability to transfer to UA. So all posts you see before that were about transfering to CO because that used to be the only way to do it.
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Old Nov 15, 11, 3:31 pm
  #4  
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Thanks for the advice. I will reply with the outcome.
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Old Nov 15, 11, 3:51 pm
  #5  
 
Join Date: Sep 2003
Posts: 5,833
I didn't realize people signed up for cards without a signup bonus. I would definitel ask about the points and would think no fee for 2nd year would be the minimum they could do.
mcgahat is online now  
Old May 31, 12, 11:54 am
  #6  
 
Join Date: Feb 2003
Location: SFO or OAK
Programs: AA 1MM GLD, Hertz #1 Gold, bunch of other programs w/no status
Posts: 1,085
Cancelling Sapphire but keeping Ink Bold questions

I just received a new Ink Bold card (targeted 50K pt UR bonus on first purchase ) and plan on cancelling my Sapphire card as the annual fee is due. I have already combined the two cards onto my online chase.com account. But before I cancel the Sapphire, I want to make sure I get everything right:

1) I assume Ink Bold UR points will now go into my existing UR account, and that my current point balance won't go away when I cancel the Sapphire, right?

2) I should transfer my Sapphire credit line to my Ink Bold.

3) If I keep the Sapphire for some reason, will I earn the 7% dividend on UR points earned via Ink Bold (esp. the sign-on bonus) since it is one account? I suspect not, but I figured I'd ask just in case.

thanks!
mangoMan is offline  
Old May 31, 12, 12:18 pm
  #7  
Formerly known as iahsumr
 
Join Date: Jan 2011
Posts: 520
First, I very much agree with the strategy of keeping the Ink Bold but cancelling the Sapphire Preferred after the free year. Many folks will get a much better bonus out of the Ink Bold than the CSP.

1. I would transfer all of the UR points from your CSP account to your Ink Bold account before calling to close your account.

2. They probably won't let you transfer a personal line of credit to your business card. They do allow that sometimes to open a business card, but I would be surprised to hear that you do it once the account is open. Of course, I could be wrong so it is worth a shot.

3. There were some reports last year of UR points transferred into a CSP account from other accounts counting toward the 7% bonus, so I would give it a maybe, maybe not answer.
Mommy Points is offline  
Old May 31, 12, 2:17 pm
  #8  
 
Join Date: Feb 2003
Location: SFO or OAK
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Originally Posted by Mommy Points View Post
1. I would transfer all of the UR points from your CSP account to your Ink Bold account before calling to close your account.
Thanks MP! OK, so just because I have both cards under one online account, it appears the UR points go into separate accounts. Is there a way to move points between accounts online or do I have to call?
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Old May 31, 12, 2:22 pm
  #9  
mia
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Originally Posted by mangoMan View Post
...Is there a way to move points between accounts online or do I have to call?
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Old May 31, 12, 2:47 pm
  #10  
In memoriam
 
Join Date: Jan 2006
Posts: 4,020
I closed my Sapphire Pref a few weeks ago and just before doing so went on line as described above to transfer the points balance to my Ink Bold card. Very easy.

Interestingly, when I called to close the Sapp card the rep checked to see what my point balance was so that, if there had been one, rep could transfer it to another account thus avoiding point loss. That was very nice of the rep and I wonder if it is Chase policy?
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Old May 31, 12, 2:55 pm
  #11  
 
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Thanks mia

Thanks for the info - moving points was super-easy.
mangoMan is offline  
Old May 31, 12, 4:28 pm
  #12  
 
Join Date: Jun 2011
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You can't transfer the credit limit from the CSP to the Ink Bold because the Ink Bold doesn't have a "credit limit". It's a charge card with a soft limit. I'd be surprised if they did this since there's not really a limit on the Ink Bold (but there kinda is, just not officially).
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Old May 31, 12, 5:10 pm
  #13  
 
Join Date: Feb 2003
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Originally Posted by DavidAL View Post
You can't transfer the credit limit from the CSP to the Ink Bold because the Ink Bold doesn't have a "credit limit". It's a charge card with a soft limit. I'd be surprised if they did this since there's not really a limit on the Ink Bold (but there kinda is, just not officially).
When I got the notice that I had been approved for my Ink Bold they stated that they had moved about half of my CSP credit limit to the Ink Bold. We'll see if they move the remaining limit when I cancel the CSP.
mangoMan is offline  
Old May 31, 12, 5:16 pm
  #14  
 
Join Date: May 2008
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i'd recommend not cancelling the CSP but rather downgrading to the normal chase sapphire with no annual fee. still get 2x on dining out, just lose the 2x on travel and 7% annual bonus. plus you keep your credit line open with the same account, which helps me a lot cause i have relatively short credit history on average.
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Old Jun 2, 12, 8:40 am
  #15  
 
Join Date: Feb 2011
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Originally Posted by decibel08 View Post
i'd recommend not cancelling the CSP but rather downgrading to the normal chase sapphire with no annual fee. still get 2x on dining out, just lose the 2x on travel and 7% annual bonus. plus you keep your credit line open with the same account, which helps me a lot cause i have relatively short credit history on average.
On the flip side, Chase is a little more draconian than others, say Citi, about # of cards you have. I've got 2 freedoms, a UA, the CSP, and an Ink Bold. I was able to call reconsideration and get the UA but it may be safer to reduce the # of cards I have since Chase seems to have a lot of attractive offers.
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