Recently I discussed the pros and cons of paying the annual fee on the Chase Sapphire Reserve card, evaluating whether it is worth it or not heading into the second year. Turns out, I technically lied. It’s not *my* Sapphire Reserve card. The account is my mom’s and I’m an AU, and we’ll actually be downgrading it. At the same time I am trying to decide…should I upgrade my Chase Sapphire Preferred to a Reserve?
Weighing the decision
Much of the factors that go into this decision have already been discussed in my previous post on whether I should keep the Sapphire Reserve open. For my parents, it doesn’t make sense. They don’t travel enough to get any real benefit out of it.
Plus, they can simply downgrade to a Freedom Unlimited. I ultimately convinced my mom to try the card since they’ve never had a travel card and I couldn’t get one due to 5/24. Â They haven’t used a single UR point to date, even after me prompting them to take a little “free” getaway. So…yeah. Close that sucker. Maybe I can get them to pick up a Sapphire Preferred later this year and they can actually do something with their points.
The pros
If I upgrade the Chase Sapphire Preferred I am about to get as a product change of my Fairmont card, I would be paying $450 for a $300 credit (essentially pre-paying travel), and the rest of the benefits for $150. This is an honest evaluation since we have no way of getting around a large chunk of paid travel in the near future as we are about to head to Costa Rica for nearly 2 months to adopt 3 beautiful kids! Can’t really hack an extended stay style hotel room for that long (so I’m honestly factoring in the $300 credit as an offset to the fee).
Thus, we’ll essentially be paying $55 for the remaining benefits, plus we’ll earn 3x on at least $3,000 of lodging over the time we will be in the country.
Since my wife already has a Sapphire Preferred, we’d probably downgrade that to a Freedom Unlimited (one of the Chase cards neither of us have). This will leave us with both types of Freedom cards, plus a CSR. Not bad, in my opinion.
The cons
It’s still $450 out the gate. The annual fee came due on my wife’s CSP in June, I believe, so we won’t be credited that back. I doubt Chase will be willing to pro-rate the annual fee (since the fee doesn’t technically come due on the Fairmont card until February). So…we will have paid an extra $95 for the “privilege” of having a CSR.
If they *do* pro-rate the fee, we come out ahead. But I highly doubt that will be the case.
Should I upgrade my Chase Sapphire Preferred to a Reserve?
What’s your take? Right now I think it is worth it, especially with the unavoidable travel expenses coming up. Should I just stick with the Sapphire Preferred?
[SEE: Chase Sapphire Preferred vs. Chase Sapphire Reserve]
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Dan Miller travels with his wife and 6 (SIX!) children. He loves to help families travel for free / cheap, especially larger families. If you are looking for help, drop him an email at 
Congrats on the adoptions! Scared me at first. I hadn’t read your previous articles and had to double check that Dan wasn’t writing this.
Yeah…there was a lot of confusion on that front when I first started writing adoption-related articles. 🙂
Yes we’re happy with the 6 we have already thanks 🙂
I get the fact that with that much hotel spending upcoming, the extra UR point on hotels makes the CSR worth it. True.
However, it seems to me that you are forgetting the 50,000 point sign up bonus. Wouldn’t it be better to sign up for a new CSR to get the new card bonus? If not, then sign up for a new CSP quick before the Fairmont card converts to get the CSP sign up bonus.
As for all your existing Chase cards, convert them to Freedom or dump them.
This assumes I am below 5/24. I’ve burnt that bridge and am not looking back. Just checked my credit yesterday, and I’m 19/24.
Why noylt upgrade your wife’s card and downgrade you’re card? Surely, Chase would refund partial year AF on involuntary product change from Fairmont to CSP?
There is no annual fee the first year for the Fairmont, or CSP, so this really isn’t an issue. Although the thought has crossed my mind since we *should* come out slightly ahead that way.
My son canceled his CSR before 12 months and was refunded, pro rated.
I don’t think you’ll be able to PC to CSR as you’re still within the first year of the Fairmont card. You should be able to do so as you get close to your anniversary date. Do let us know if your experience is otherwise.
I’ve thought about that, and my backup plan is to convert my wife’s CSP. I figured this may be different, since they are already pulling a product change on me to something I didn’t sign up for.
My understanding is that it has to do with the CARD Act rather than internal policies. Although it’s possible they could allow you to upgrade AND not charge you anything until the end of the first year. Best of all worlds. I would jump on that myself, as I recently PCd my CSR back to CF (when the AF hit) in anticipation of having a free CSP this month.
Don’t forget that the Reserve card provides for travel insurance and protection on trips purchased with the card. This saves a good deal of you regularly buy this.
Unless there’s something I’m missing if you upgrade you don’t get the 50,000 point bonus and it would be ridiculous to do that. If you want the Reserve apply for it, if you can’t get it now because of 5/24 or something then wait. You’d be nuts to leave 50,000 points laying on the table. This is a no brainer.
You can always PC to another card later if you become eligible for the CSR opening bonus. Having had a card in the past doesn’t disqualify one from earning a Chase bonus as long as you didn’t get it the first time (which, as you note, you can’t get when you PC).
You are 100% correct but from my point of view easily the most attractive part of the card is the 50,000 point bonus now that they changed the travel credit so that you can’t get it twice in the first year of having the card.
The opportunity cost of allowing myself to drop below 5/24 (at this point, 20+ months) is not worth it. I’d have to go cold turkey on all apps for nearly 2 years.