How to Downgrade Chase Sapphire Preferred? The Ultimate Guide
So, you’re considering downgrading your Chase Sapphire Preferred card. Perhaps the annual fee is starting to sting, or maybe your spending habits have shifted. Whatever the reason, downgrading can be a smart financial move. Here’s the straightforward answer:
To downgrade your Chase Sapphire Preferred card, you need to contact Chase customer service. Call the number on the back of your card, or use the secure messaging feature within your online account. Request a downgrade to a no-annual-fee Chase card, such as the Chase Freedom Unlimited or the Chase Freedom Flex. The key is to ensure that the product change is to another Chase card and not complete cancellation. Keep in mind that this action is irreversible and may require you to wait 48 months to be eligible to earn the sign-up bonus for the Chase Sapphire Preferred card once again.
Why Downgrade Your Chase Sapphire Preferred?
Before we dive deeper, let’s briefly touch on the reasons behind this decision. The Chase Sapphire Preferred boasts excellent travel benefits and rewards, but its annual fee of $95 isn’t negligible. Some cardholders find that they don’t fully utilize the card’s perks to justify the cost, or they might prefer the flexibility of a no-annual-fee card with a simpler rewards structure. Others might temporarily reduce expenses.
Step-by-Step Guide to Downgrading
Here’s a detailed breakdown of the downgrading process:
Assess Your Needs: Before you call Chase, be honest with yourself. What do you value most in a credit card? Is it travel rewards, cashback, or a low interest rate? Identifying your priorities will help you choose the best downgrade option.
Explore Downgrade Options: Chase typically offers two main downgrade options: the Chase Freedom Unlimited and the Chase Freedom Flex. Both are excellent no-annual-fee cards with unique rewards structures. The Freedom Unlimited offers a flat 1.5% cashback on all purchases, while the Freedom Flex features rotating 5% cashback categories and 1% on everything else.
Contact Chase Customer Service: This is the most crucial step. Call the number on the back of your Chase Sapphire Preferred card. Be prepared to wait on hold, but remain polite and professional with the representative.
Request the Downgrade: Clearly state that you want to downgrade your Chase Sapphire Preferred to either the Chase Freedom Unlimited or the Chase Freedom Flex. The representative might try to persuade you to keep your Sapphire Preferred by offering retention bonuses or temporary fee waivers. It’s okay to listen to their offers, but stick to your decision if you’re certain about downgrading.
Confirm the Details: Once the downgrade is approved, confirm the following details with the representative:
- New Card Details: Double-check which card you’re downgrading to (Freedom Unlimited or Freedom Flex).
- Account Number: Verify that your account number will remain the same. This is important to avoid any disruptions to your credit history.
- Credit Limit: Confirm that your credit limit will stay the same.
- Rewards Transfer: Ask how your existing Chase Ultimate Rewards points will be transferred to the new card. Your points will be safe, but understanding the process is important.
Receive Your New Card: Your new card will arrive in the mail within 7-10 business days. Once you receive it, activate it immediately.
Destroy Your Sapphire Preferred Card: Cut up your old Chase Sapphire Preferred card to prevent any unauthorized use.
Important Considerations Before Downgrading
Lost Perks: You’ll lose the valuable travel benefits associated with the Sapphire Preferred, such as travel insurance and primary rental car insurance.
Rewards Value: Chase Ultimate Rewards points are generally more valuable when redeemed through the Chase Sapphire Preferred portal. Downgrading might slightly reduce the value of your points, especially for travel redemptions.
5/24 Rule: Remember Chase’s 5/24 rule, which states that you won’t be approved for a new Chase card if you’ve opened five or more credit cards (from any bank) in the past 24 months. Downgrading frees up a slot within the 5/24 rule, allowing you to apply for other Chase cards.
Sign-Up Bonus Eligibility: Downgrading resets the clock for earning the Sapphire Preferred bonus again in the future after waiting 48 months from the date you last earned it.
Alternatives to Downgrading
Before you take the plunge, consider these alternatives:
Retention Offers: As mentioned earlier, Chase might offer you a retention bonus to keep your Sapphire Preferred. This could be in the form of bonus points, a statement credit, or a temporary annual fee waiver.
Product Change to Chase Sapphire Reserve: If you’re a heavy traveler, consider upgrading to the Chase Sapphire Reserve. It has a higher annual fee ($550), but offers more valuable travel perks and a higher rewards rate on travel and dining. However, you can’t directly product change to the Chase Sapphire Reserve. You need to apply for it separately.
Chase Credit Card FAQs: All About Downgrading
Here are answers to some frequently asked questions about downgrading your Chase Sapphire Preferred:
1. Can I downgrade my Chase Sapphire Preferred to a card with no annual fee?
Absolutely! The Chase Freedom Unlimited and Chase Freedom Flex are the most common no-annual-fee downgrade options.
2. Will downgrading affect my credit score?
Generally, downgrading shouldn’t negatively impact your credit score, especially if you keep your credit limit the same and continue to make on-time payments. Downgrading usually does not involve a hard inquiry, which could temporarily lower your credit score.
3. What happens to my Chase Ultimate Rewards points when I downgrade?
Your Ultimate Rewards points will remain in your account and be transferred to your new card. You can still redeem them through the Chase Ultimate Rewards portal.
4. Can I downgrade to any Chase card?
No, you can only downgrade to cards within the same “family” of Chase cards. Typically, this means downgrading to the Chase Freedom Unlimited or the Chase Freedom Flex. You can’t change a personal card to a business card or vice-versa, and you can’t change a travel card to a cash-back card.
5. How long does it take to receive my new card after downgrading?
You can expect to receive your new card within 7-10 business days.
6. Can I upgrade back to the Chase Sapphire Preferred after downgrading?
Yes, you can apply for the Chase Sapphire Preferred again in the future. However, you’ll need to wait 48 months from the date you received your last bonus to be eligible for a new sign-up bonus.
7. Is it better to downgrade or cancel my Chase Sapphire Preferred?
Downgrading is generally preferable to canceling, as it keeps your account open, maintains your credit history, and allows you to retain your Ultimate Rewards points. Canceling can potentially negatively impact your credit utilization ratio.
8. Can I get a refund of the annual fee if I downgrade mid-year?
Yes, if you downgrade your card within 30 days of the annual fee posting, you can request a refund of the fee. Call Chase customer service to inquire about this.
9. Will my account number change when I downgrade?
In most cases, your account number will remain the same, simplifying the transition. However, it’s always best to confirm this with the Chase representative.
10. What if I don’t qualify for a downgrade?
If you don’t qualify for a downgrade (due to creditworthiness or other factors), your only option might be to close the account.
11. Can I downgrade my card online, or do I have to call?
Unfortunately, you can only downgrade your Chase Sapphire Preferred by calling Chase customer service. There is no online option for downgrading.
12. What if Chase doesn’t offer the downgrade option I want?
Sometimes, the specific downgrade options available can vary. If Chase doesn’t offer the card you want, consider applying for a new Chase card instead. However, be mindful of the 5/24 rule.
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