If you’re a current Chase Sapphire Reserve® cardholder, you’re probably questioning whether the card is still worth it when the annual fee jumps to $795. Increasing $245 from the previous $550 could be a tipping point, and it’s worthwhile to compare the value you get to how much it costs each year.
If the math doesn’t add up, you could close the card, open a different premium credit card or downgrade to a different Chase card with a lower annual fee. Here’s how to downgrade and what to consider before you make a change.
Chase Sapphire Reserve®’s Fee Increase
Starting Oct. 26, current Chase Sapphire Reserve® cardholders will pay a $795 annual fee on their renewal date. New applicants will pay the higher annual fee immediately.
The increase accompanies a card refresh, including new benefits like eight points per dollar on all Chase Travel? purchases and an assortment of additional statement credits.
If you’re not getting enough value from the card to justify the cost, you might consider closing it.
Another option, however, is to request a product change — also known as a downgrade. When you downgrade your card, you choose another Chase card with a lower annual fee. You’ll keep your account history intact, but use a different product.
Downgrading Your Chase Sapphire Reserve® Card
If you want to downgrade your Chase Sapphire Reserve®, follow these steps.
Choose a Lower-Fee Chase Card
You can move Chase Ultimate Rewards points to another card that earns them, such as the Chase Sapphire Preferred® Card or Chase Freedom Unlimited®, says Chip Chinery, personal finance blogger at Chip’s Money Tips.
The Chase Sapphire Preferred® Card has a $95 annual fee and earns five points per dollar on Chase Travel; three points per dollar on dining, select streaming services and groceries; two points per dollar on all other travel purchases and one point per dollar on all other purchases. Cardholders get $50 in Chase Travel hotel statement credits annually, and the card offers trip cancellation and interruption insurance, an auto rental collision damage waiver, lost luggage insurance and more.
The Chase Freedom Unlimited® has no annual fee and earns 5% cash back on Chase Travel, 3% at drugstores and on dining and 1.5% on all other purchases.
“The best one would be the Chase Sapphire Preferred® Card,” says Dana Yao, a travel blogger who downgraded because she’d need to spend more to maximize the lifestyle value credits. “It has a much lower annual fee of $95, and it keeps the Chase Ultimate Rewards transferability to travel partners.”
Contact Chase Directly
Call the phone number on the back of your card to talk to Chase customer service.
Ask for a Product Change
Clearly tell the Chase customer service representative that you want to keep your account but downgrade to the lower-fee card of your choice.
Confirm All Changes
Expect to keep the same account number and credit line but lose Chase Sapphire Reserve® benefits such as statement credits and extensive travel insurance.
[READ How AmEx Platinum Measures Up Against Sapphire Reserve and Strata Elite]
Alternative Cards to Consider
If you decide the Chase Sapphire Reserve® is no longer the right choice, you might switch to a different premium credit card with a lower annual fee.
— Capital One Venture X Rewards Credit Card has a $395 annual fee but offsets it with a $300 annual Capital One Travel credit and 10,000 annual bonus miles equal to $100 toward travel each anniversary year. See Rates & Fees
— Citi Strata Elite? Card has a $595 annual fee and offers up to a $300 annual Citi Travel® hotel credit, up to a $200 annual Splurge Credit? good at participating brands and up to a $200 annual Blacklane® chauffeur service credit.
“The Capital One Venture X Rewards Credit Card is a strong contender for lounge access, giving you access to both the Capital One lounges and Priority Pass,” says Dave Grossman, author of “MilesTalk: Live Your Wildest Travel Dreams Using Miles and Points.”
Should You Keep, Downgrade or Switch?
The Chase Sapphire Reserve® card offers valuable perks that can outweigh its cost, but it’s not a good fit for every traveler. Ultimately, you should get at least $795 in value each year if you want to break even. Add up the benefits you use, such as the $300 annual travel credit, airport lounge visits and insurance protections to determine how much the card saves you.
“You have to do your own math and remember that every benefit and every statement credit is worth the value you assign to it,” says Grossman, “not the value the credit card company states.”
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Your Chase Sapphire Reserve Fee Is Shooting Up. Here’s How to Downgrade originally appeared on usnews.com
