What To Know
- The Sapphire Reserve has a significantly higher annual fee of $550, while the Sapphire Preferred has a more modest $95 fee.
- However, if you’re primarily interested in earning rewards on everyday spending and want to save on annual fees, the Sapphire Preferred could be a better option.
- If you decide to upgrade back to the Sapphire Reserve in the future, you may have to wait 48 months after the downgrade.
Are you considering switching from the Chase Sapphire Reserve® card to the Chase Sapphire Preferred® card? Whether you’re looking to save on annual fees or better align your card with your spending habits, this comprehensive guide will walk you through the process step by step.
Understanding the Differences
Before making the switch, it’s crucial to understand the key differences between the two cards:
- Annual Fee: The Sapphire Reserve has a significantly higher annual fee of $550, while the Sapphire Preferred has a more modest $95 fee.
- Rewards Earning: Both cards offer valuable rewards, but the Sapphire Reserve earns 3x points on dining and travel, while the Sapphire Preferred earns 2x points on dining, travel, and select streaming services.
- Travel Benefits: The Sapphire Reserve comes with an array of premium travel benefits, including lounge access, trip delay insurance, and global entry credits, which the Sapphire Preferred does not offer.
- Other Perks: The Sapphire Reserve offers additional perks such as a $300 annual travel credit and a 1:1 point transfer ratio to airline and hotel partners, while the Sapphire Preferred has a simpler rewards structure.
Evaluating Your Needs
Before switching, carefully consider your spending habits and travel preferences. If you frequently travel and value premium benefits, the Sapphire Reserve may still be the right choice for you. However, if you’re primarily interested in earning rewards on everyday spending and want to save on annual fees, the Sapphire Preferred could be a better option.
Switching Process
To switch from the Sapphire Reserve to the Sapphire Preferred, follow these steps:
1. Contact Chase: Call Chase customer service at 1-800-432-3117 and inform them of your request to downgrade.
2. Confirm Details: Chase will confirm your account details and ask for your reasons for switching.
3. Downgrade Processing: The downgrade will typically take 5-10 business days to process.
4. New Card Issuance: Once the downgrade is complete, you will receive a new Sapphire Preferred card in the mail.
5. Rewards Transfer: Your accumulated Ultimate Rewards points will automatically transfer to your new Sapphire Preferred account.
Benefits of Switching
- Lower Annual Fee: Save $455 per year on the annual fee.
- Simplified Rewards Structure: Earn 2x points on everyday spending instead of having to track multiple bonus categories.
- Flexibility: Use your points towards a wider range of travel and everyday rewards.
- No Impact on Credit Score: Downgrading to a lower-tier card typically does not affect your credit score.
Considerations
- Loss of Premium Benefits: You will lose access to lounge access, trip delay insurance, and other exclusive benefits offered by the Sapphire Reserve.
- Potential Loss of Points Value: If you frequently redeem points for premium travel experiences, the 1:1 transfer ratio of the Sapphire Reserve may be more valuable than the 1:0.8 transfer ratio of the Sapphire Preferred.
- Future Upgrade: If you decide to upgrade back to the Sapphire Reserve in the future, you may have to wait 48 months after the downgrade.
Recommendations: Making the Right Decision
Ultimately, the decision of whether to switch from the Chase Sapphire Reserve to the Chase Sapphire Preferred depends on your individual needs and preferences. By carefully evaluating the differences, considering your spending habits, and following the outlined switching process, you can make an informed decision that aligns with your financial goals.
Frequently Asked Questions
Q: Can I downgrade my Sapphire Reserve to the Sapphire Preferred online?
A: No, you cannot downgrade online. You must contact Chase customer service to initiate the downgrade process.
Q: Will I lose my Ultimate Rewards points if I downgrade?
A: No, your accumulated points will automatically transfer to your new Sapphire Preferred account.
Q: How long will it take to receive my new Sapphire Preferred card?
A: Typically, it takes 5-10 business days to process the downgrade and receive your new card.
Q: Can I upgrade back to the Sapphire Reserve after downgrading?
A: Yes, but you may have to wait 48 months after the downgrade.
Q: Will downgrading affect my credit score?
A: Downgrading to a lower-tier card typically does not impact your credit score.
