Can You Upgrade Sapphire Preferred to Reserve? Unlocking Premium Rewards

Yes, you can typically upgrade your Chase Sapphire Preferred card to the Chase Sapphire Reserve card. However, there are crucial factors and eligibility requirements you need to understand before initiating the upgrade process. This comprehensive guide will walk you through everything you need to know about upgrading, potential alternatives, and frequently asked questions to help you make an informed decision.

Understanding the Upgrade Process

Upgrading your credit card isn’t as simple as clicking a button. Chase, like other major credit card issuers, has specific protocols in place. Let’s break down the key elements:

Eligibility Requirements

• Creditworthiness: Chase wants to ensure you’re a responsible borrower capable of handling the higher credit limit and annual fee associated with the Sapphire Reserve. They will review your credit history, including your payment history and credit score. A strong credit score is almost always a prerequisite.
• Account Standing: Your Sapphire Preferred account must be in good standing. This means no late payments, no over-the-limit charges, and no history of financial distress. Chase wants to see that you’ve been a reliable customer.
• Upgrade Offer: While not always required, sometimes Chase will proactively offer you an upgrade to the Sapphire Reserve. These offers often appear in your online account or via email. Responding to a targeted offer can streamline the process.
• Time Since Account Opening: You generally need to have had your Sapphire Preferred card for at least one year before Chase will consider an upgrade. This allows them to assess your payment behavior and overall creditworthiness with their product.
• 5/24 Rule: While the Chase 5/24 rule doesn’t directly prevent an upgrade, it’s still essential to keep in mind. The 5/24 rule states that you won’t be approved for a Chase card if you’ve opened five or more credit cards (from any bank) in the past 24 months. Upgrading doesn’t add a new card to your record for 5/24 purposes, but opening a new Reserve card will.

How to Request an Upgrade

1. Check for Upgrade Offers: Log in to your Chase online account and look for any upgrade offers. Alternatively, call the number on the back of your card and ask a customer service representative if an upgrade is available for your account.
2. Call Chase Customer Service: Calling is often the most direct route. A representative can assess your eligibility and guide you through the process. Be prepared to answer questions about your income and employment status.
3. Be Prepared to Justify the Upgrade: While not always required, the representative might ask why you want to upgrade. Highlight the benefits of the Reserve card that appeal to you, such as the travel perks, higher rewards on travel and dining, and access to airport lounges.
4. Understand the Terms: Before committing, make sure you fully understand the terms of the upgrade, including the annual fee, APR, and any changes to your credit limit or rewards structure.

Potential Downsides of Upgrading

• Missed Welcome Bonus: This is the most significant downside. Upgrading doesn’t qualify you for the Chase Sapphire Reserve’s substantial welcome bonus, which you’d receive if you applied for the card outright.
• Higher Annual Fee: The Sapphire Reserve has a significantly higher annual fee than the Sapphire Preferred. Make sure the benefits outweigh the cost for your spending habits.
• Impact on Credit Utilization: Depending on your spending habits, the higher credit limit associated with the Reserve card might tempt you to spend more, potentially impacting your credit utilization ratio.

Alternative: Applying for a New Chase Sapphire Reserve

Instead of upgrading, consider applying for a new Chase Sapphire Reserve card. While this involves a credit inquiry, it offers some distinct advantages:

• Welcome Bonus: As mentioned earlier, you’ll be eligible for the welcome bonus, which can be worth hundreds of dollars.
• Separate Credit Line: You’ll have a separate credit line, which can be helpful for managing your spending and improving your credit utilization ratio.
• Evaluating the Decision: Before applying for a new card, make sure you are under 5/24.

FAQs: Your Sapphire Upgrade Questions Answered

Here are 12 frequently asked questions to further clarify the upgrade process and help you make the best choice.

1. What credit score do I need to upgrade to the Chase Sapphire Reserve?

Generally, you’ll need a good to excellent credit score, typically in the range of 700 or higher. However, Chase considers other factors besides your credit score, such as your income and overall credit history.

2. Does upgrading affect my credit score?

Upgrading generally has a minimal impact on your credit score. There will be no hard credit inquiry. Your account history remains the same, which contributes to your credit age.

3. Can I upgrade if I just opened my Sapphire Preferred card?

No, typically you need to have the Sapphire Preferred card for at least one year before you’re eligible to upgrade.

4. Will I get the Sapphire Reserve welcome bonus if I upgrade?

No, upgrading does not qualify you for the welcome bonus. You only receive the welcome bonus when you open a new card and meet the spending requirements.

5. Is it better to upgrade or apply for a new Sapphire Reserve card?

It depends. If you want the welcome bonus, applying for a new card is better. If you’re not eligible for a new card due to the 5/24 rule or simply prefer not to open a new account, upgrading might be a better option. However, you miss out on substantial rewards by skipping the welcome bonus.

6. What’s the difference between the Sapphire Preferred and Sapphire Reserve?

The key differences are the annual fee, rewards structure, and benefits. The Reserve has a higher annual fee but offers better rewards on travel and dining, plus perks like airport lounge access and a travel credit. The Preferred has a lower annual fee and a more modest rewards program.

7. How long does it take for the upgrade to be processed?

The upgrade is usually processed immediately after you’re approved. You can start using the new benefits right away. The physical Reserve card will typically arrive within 7-10 business days.

8. Can I downgrade from Sapphire Reserve to Sapphire Preferred?

Yes, you can downgrade from the Reserve to the Preferred. This can be a good option if you’re no longer using the Reserve’s benefits enough to justify the annual fee.

9. Will my credit limit change when I upgrade?

Your credit limit may change, depending on your creditworthiness and spending habits. Chase will assess your credit profile and adjust your credit limit accordingly. It’s possible your limit stays the same.

10. Can I transfer my Ultimate Rewards points between the two cards?

Yes, you can freely transfer your Ultimate Rewards points between your Sapphire Preferred and Sapphire Reserve cards. This allows you to pool your points and redeem them for maximum value.

11. What happens to my existing Sapphire Preferred points when I upgrade?

Your existing points will remain in your Ultimate Rewards account and will be available to use with your new Sapphire Reserve card.

12. If I upgrade, will I get a new account number?

No, upgrading typically doesn’t change your account number. However, you will receive a new card with a different expiration date and security code.

Final Thoughts

Upgrading your Chase Sapphire Preferred to the Reserve can be a convenient way to access premium travel benefits and earn more rewards, but carefully weigh the pros and cons. Consider whether you’d be better off applying for a new Reserve card to take advantage of the welcome bonus. Evaluate your spending habits and travel plans to determine if the Reserve’s higher annual fee is justified. Armed with this information, you can make the decision that best aligns with your financial goals and travel aspirations.