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Canceling My Sapphire Preferred




There is no doubt that the Chase Sapphire Preferred is the best personal Chase credit card, and just last month I wrote about keeping it through 2015. I looked over my spending patterns the last six months and it doesn’t make sense to keep the card. Here’s what I wrote about the card:

This card is getting tougher to keep. The loss of the 7% dividend after 2015 and the fact that I have an Ink Bold which gives me the ability to transfer points to the travel partners.

I used to use the Sapphire Preferred because of the 2x on dining, then Citi introduced transferrable partners and I have the Citi Forward for 5x on dining. That leaves travel for 2x, but I now have the Fidelity American Express for 2% cashback. Sure, Ultimate Reward points could be worth more than 2 cents per points, but I would need to spend a pretty penny to make up for the $95/year annual fee. Unfortunately, my membership year is in November. I am thinking of waiting until after the points dividend of 2015 hits my account, and hoping to see if I fall within the grace period of the annual fee before changing the product. If not, then I’ll use it through 2016 before the annual fee hits again and do the shift to the Fidelity AMEX.

In November, I paid the $95 annual fee which I now consider a sunk cost. The biggest reason that has swayed me to drop the Sapphire Preferred is the huge fact that I can product change into another Chase Freedom card. I spoke to a friendly customer service rep and asked her “what are my product change options” and she went over the entire list. For the record they are, as of writing this today:

  • Chase Freedom
  • Chase Sapphire
  • Chase Slate

This year, the categories are awesome:

Sapphire Preferred

 

Groceries in Q1, Gas in Q3, and likely Department stores for Q4 is compelling enough for me to eat the $95 annual fee convert after the point dividend payout and be able to grab the Q1 category for a cool as a cucumber 7500 points. And now that I have changed my statement date to the first of the month, as soon as February rolls over, I can product change and still have some time to maximize Q1.

While it is really, really awesome to have someone answer on the first ring because of the Sapphire Preferred card, they are able to service other Chase credit cards. I have the number saved in my phone and plan to call them when I need their help.

21 comments… add one
  • I keep it for the primary rental car insurance. It saves me many times the annual fee with that benefit alone.

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  • I have been planning to cancel my CSP too, but wanted to wait for the 7% (I have to look into when that posts…can’t remember). I’m hoping I can get a 2nd Freedom card via downgrade and also that I can get it before the grocery category goes away.

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    • That’s what I’m going to do, as soon as the 7% comes in, I’m calling to product change. It is usually the second statement of the new year when the dividend posts

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  • As a travel agent I think this is a big mistake. The expanded Trip Cancellation benefits with the CSP are amazing, way cheaper than if you buy travel insurance for multiple trips. As long as you don’t need pre existing medical coverage, it’s really a bargain. And a huge limit too ten thousand dollars! . Add on primary car rental insurance and I’m keeping it and all travel goes on it.

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    • Thanks for the feedback! Could you expand on maximizing the trip cancellation benefits? I haven’t traveled enough to need to know what’s the best option for that

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  • Question:

    I don’t yet have Chase Freedom and will probably sign up for one in the future when the periodic 20K bonus comes up again (my wife has a Freedom card, so we’re not completely missing out on the 5X although we don’t really maximize it).

    If I were to product-change my Sapphire Preferred down to a Freedom *before* applying for my own Freedom card would:

    1. That interfere with my ability to get the Freedom card?

    2. Would I still get the bonus since I’d have an existing Freedom card (despite not having received the bonus for it)?

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    • Funny, I was thinking of the exact same thing. Can I get the Freedom sign up bonus while cancelling csp?

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      • Yes, you can grab the Freedom sign up bonus while you cancel the CSP since they are different products

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    • I think if you downgrade to the Freedom and then apply I think it would interfere as they may say you already have the product. I don’t know the answer to #2 – I would think Chase would be strictish and say no bonus, but that’s just my opinion.

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  • The luggage delay insurance pays for the af many time over every year for me. After 6 hours, we get up to $200 every day when we don’t get our luggage. It means great shopping sprees!

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    • I didn’t even think of that part Nick! Definitely can see that happening at least every other year for a moderate traveler…

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    • That sounds like a nice deal!

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  • I’m not as familiar with the CSP travel insurance… how does it compare to the Arrival+?

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    • I assume this covers the Arrival+? If so the limit is $1500, on the CSP they raised it as far as I know from $5k to $10k. And the baggage limit was $100, $200 Nick said on CSP.

      Also CSP is now Primary, Barclay World Mastercard is Secondary c for car rental insurance.

      Again I hate that CSP doesn’t waive this or give you miles each year as Retention Bonus, but these increased benefits that just hit a few months ago make it worthwhile IMHO. I’m doing a cruise soon, used my CSP and didn’t buy travel insurance – so I considered I got my $89 already back. Plus double Chase points for travel.
      https://www.barclaycardus.com/app/ccsite/benefits/guide/F03-K046-3_MC_W.pdf?domainCPC=USA

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  • Good move. This card has been overrated. No need to keep after signup bonus.

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    • I think the Sapphire Preferred is a great card if you don’t have an Ink card or you have other cards that can fill the void that the Preferred card fulfills.

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  • Three questions:
    1) Does keeping the card until Nov 2015 before cancelling it in any way affect your ability to get another CSP bonus in the future? Must you be 24 months removed from opening the card or closing the card with Chase?
    2) Do you have a Freedom already? I have the Freedom Visa and CSP Visa. Would love to downgrade to another Freedom…but don’t know if that is allowed.
    3) I thought the Chase Sapphire (non-preferred) was no longer available? If I can’t get another Freedom, then I’d love to change to this card and at least it is available for 2X dining with no AF (I don’t have the Citi Forward).

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    • I think Doctor of Credit posted (not 100% sure), but I know someone posted it, that it’s actually 24 months after receiving the bonus and not when the card closes. I need to research and confirm on that.

      I currently have 2 Freedoms, hoping to product change this Sapphire Preferred into a third 🙂

      The regular plain jane Sapphire is still available, just not for new sign ups

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  • Me and my wife, both signed up for CSP(VISA as well as MC) in 2011, come 2012, we converted it to Freedom. As we already had Chase freedom beforeand, now, both of us have 3 freedom cards.

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    • Nice! I hope to join you and your wife next month with 3 Freedom cards

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