For several years, the Chase Sapphire Preferred® Card was one of the best travel reward credit cards. It offers 2X points on travel and dining at restaurants worldwide and 1 point per dollar spent on all other purchases. With Chase Sapphire Preferred®, you can transfer your points to leading frequent travel programs at 1 to 1 value. Points can be transferred to ten airline travel partners or three hotel travel partners. You can also redeem points for 1.25 cents each towards travel reservations made through Chase.
In 2016, Chase’s Sapphire Reserve® card was introduced. It offers 3x points for travel and dining purchases, and points are worth 1.5 cents towards travel reservations. It also offers airport business lounge access and a $300 annual travel statement credit.
Not only did the Chase Sapphire Reserve® overtake the Chase Sapphire Preferred® Card, but it also became one of the most sought-after credit cards ever introduced. For a while, Chase even had trouble printing enough of them. Yet those who have received a Chase Sapphire Reserve® were often left wondering what do with their old Chase Sapphire Preferred® card.
Chase Sapphire Preferred® Card vs. Chase Sapphire Reserve®
Often, a new credit card will provide benefits that complement existing offerings. For example, if a new Chase card offered bonus points for entertainment and grocery store purchases, then it might make sense for some to hold this card and keep their Sapphire Preferred®. But the benefits of the Sapphire Reserve® completely equaled or surpassed those of the Sapphire Preferred®. For instance, the Sapphire Reserve® offers triple points where the Preferred® only offers double points. And every cardholder benefit offered to Preferred® cardholders is granted to Reserve® cardholders, and more.
The Three Choices
If you hold both the Sapphire Reserve® and the Sapphire Preferred®, then you are left with three choices:
Option 1. Keep the Sapphire Preferred®. There are few logical reasons to keep this card if you already have the Sapphire Reserve®. One reason is to continue to build your credit by having more credit extended and another account on your credit report. But with a $95 annual fee, this is an expensive way to build credit.
Option 2: Cancel the Sapphire Preferred® Card. This seems like the obvious choice for many cardholders when they realize that the Sapphire Preferred® card’s benefits are completely redundant to the Sapphire Reserve®. The advantages of this strategy is that you’ll save the $95 annual fee, and have one less card to worry about. On the other hand, you will be reducing your credit extended and you’ll have one less account adding to your credit history. For those with a shorter credit history, or with very few credit cards, this could have a small, negative effect on your credit score.
Option 3: Request a product change. A product change is where a card issuer keeps your account open, but changes the type of card associated with it. And when you product change your Sapphire Preferred® to a card without an annual fee, you can save $95 while keeping your account open and on your credit report. In addition, you can also enjoy the complementary advantages of another Chase credit card.
For example, you could perform a product change to the Chase Freedom® card, which offers 5% cash back on up to $1,500 spent each quarter at merchants in featured categories, and 1% cash back on all other purchases. You could also choose to the Chase Freedom Unlimited®, which features unlimited 1.5% cash back on all purchases. Neither of these cards have an annual fee.
With the Chase Freedom Unlimited®, you can earn a $200 bonus after you spend $500 on purchases in the first 3 months of your account opening. You can earn unlimited 1.5% cash back on all purchases. If you choose the standard Chase Freedom® card, you earn 5% on travel purchased through Chase and 3% on dining at restaurants and drugstores. These Chase Freedom Unlimited® and Chase Freedom® card benefits seem better than having to pay $95 for the redundant benefits of the Sapphire Reserve®.
It’s always a good problem to have when your credit card has been replaced with a better one, but you still need to figure out what to do with your old card. By understanding all of your options, you can choose the best one for you needs.
- Credit Recommended (660-850):
- Intro Rewards Bonus
- 100,000 bonus points
- Rewards Rate 1
- 2X points on dining at restaurants including eligible delivery services, takeout and dining out and travel
- Foreign Trans Fee
- Annual Fee
- Regular APR
- 15.99% - 22.99% Variable
- Credit Recommended
- Our best offer ever! Earn 100,000 bonus points after you spend $4,000 on purchases in the first 3 months from account opening. That's $1,250 when you redeem through Chase Ultimate Rewards®.
- Earn 2X points on dining including eligible delivery services, takeout and dining out and travel. Plus, earn 1 point per dollar spent on all other purchases.
- Get 25% more value when you redeem for airfare, hotels, car rentals and cruises through Chase Ultimate Rewards®. For example, 100,000 points are worth $1,250 toward travel.
- With Pay Yourself Back℠, your points are worth 25% more during the current offer when you redeem them for statement credits against existing purchases in select, rotating categories
- Get unlimited deliveries with a $0 delivery fee and reduced service fees on eligible orders over $12 for a minimum of one year with DashPass, DoorDash's subscription service. Activate by 12/31/21.
- Count on Trip Cancellation/Interruption Insurance, Auto Rental Collision Damage Waiver, Lost Luggage Insurance and more.
- Get up to $60 back on an eligible Peloton Digital or All-Access Membership through 12/31/2021, and get full access to their workout library through the Peloton app, including cardio, running, strength, yoga, and more. Take classes using a phone, tablet, or TV. No fitness equipment is required.
Editorial Disclaimer: Information in these articles is brought to you by CreditSoup. Banks, issuers, and credit card companies mentioned in the articles do not endorse or guarantee, and are not responsible for, the contents of the articles. The information is accurate to the best of our knowledge when posted; however, all credit card information is presented without warranty. Please check the issuer’s website for the most current information.