Should You Upgrade Your Chase Freedom to a Sapphire Card?

If you're a Chase Freedom cardholder, you might be wondering if it's worth upgrading to a Sapphire card. The Chase Sapphire Preferred card offers a 60,000-point bonus after spending $4,000 in the first 3 months, which can be redeemed for travel through Chase Ultimate Rewards.

The Chase Sapphire Preferred card also has a higher earning rate on travel and dining purchases, earning 2X points per dollar spent. This can add up quickly, especially if you frequently dine out or travel.

One key difference between the Chase Freedom and Sapphire cards is the annual fee. The Chase Sapphire Preferred card has a $95 annual fee, while the Chase Freedom card has no annual fee. However, the Sapphire card's benefits and rewards may make up for the added cost.

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Upgrading from Chase Freedom to Sapphire Preferred can be a great way to boost your rewards earnings, but it's essential to consider the potential impact on your credit utilization and scores. You'll want to be mindful of your credit utilization ratio, as closing multiple cards at once can cause it to spike and potentially harm your FICO scores.

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If you're considering upgrading to Sapphire Preferred, you may be able to reallocate the credit limit from your Chase Freedom Unlimited card, which can be a good strategy to maximize your rewards earnings. However, this requires being under 5/24, and you'll also need to be aware of the potential impact on your credit utilization ratio.

It's worth noting that the value of Chase Freedom Unlimited is increased when paired with Sapphire Preferred, as the 1.5% cash back becomes a bigger number when redeemed for travel through the Chase portal. This can be a valuable perk, especially for travelers.

You can refer to the following table to see the benefits of upgrading to Sapphire Preferred:

Remember to carefully consider your financial situation and credit profile before making a decision, and it's always a good idea to consult with a financial advisor or credit expert if you're unsure.

Upgrading from the Chase Freedom Unlimited to the Chase Sapphire Preferred offers several benefits.

The value of the Chase Freedom Unlimited is increased when you have the Chase Sapphire Preferred. The 1.5% cash back becomes a bigger number 1.5*1.25(?) back on all spend, which can be valuable in terms of redemption for travel through their portal.

Having the Chase Sapphire Preferred can also provide a generous sign-up bonus, which is hard to pass up.

If you're considering closing cards, keep in mind that having fewer cards can cause your utilization to spike more easily, which may lead to a decline in your FICO scores and ability to apply for new credit.

Closing three cards at the same time may cause your scores to fluctuate wildly, so it's a good idea to space out any closures.

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You'll get a statement credit to offset the annual fee if you product change to the Sapphire Preferred, which is a nice perk.

Applying for the Sapphire Preferred from scratch is not a good idea in the runup to a mortgage, as it's not something you want to do at that time.

You might want to ask a Chase customer service representative if product changing will report as a new account, but there's no guarantee they'll give you an accurate answer.

The safest course of action is to resist the temptation and do nothing until after you close on the mortgage.

If you upgrade to the Sapphire Preferred now, you won't be eligible for the Sapphire Preferred's sign-up bonus later on.

You can always combine the limits from both cards if you decide to apply for the Sapphire Preferred later and no longer need the Chase Freedom.

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The Chase Sapphire Reserve comes with a hefty annual fee of $550, which is prorated when you upgrade. This fee is a significant consideration when deciding whether to upgrade from the Chase Freedom.

If you're considering upgrading, make sure the benefits of the Chase Sapphire Reserve will save you more money than you're spending on the annual fee. The Sapphire Preferred's annual fee is a much more reasonable $95.

You won't be earning the Chase Sapphire Reserve's sign-up bonus when you upgrade, so factor that into your decision as well.

Related reading: Can I Upgrade My Chase Sapphire Preferred to Reserve

The annual fee is a significant consideration when choosing a credit card. A $550 annual fee, like the one for the Chase Sapphire Reserve, can be a major expense.

If you're planning to upgrade from a no-annual-fee card, make sure the benefits of the new card will save you more money than you're spending on the fee. The Chase Sapphire Reserve's benefits might not be worth it if you're not earning the sign-up bonus.

The Chase Sapphire Preferred has a much more reasonable annual fee of $95, which is a significant difference.

Upgrading your Chase Freedom card to the Chase Sapphire Preferred means you'll forfeit the card's sign-up bonus of 60,000 points.

You'll also miss out on earning those points, which we estimate are worth around $1,020 in travel, given our estimated value of 1.7 cents per point.

The sign-up bonus is a significant perk, making it a huge reason not to upgrade your cards.

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To get the most out of your Chase Freedom card, you'll want to activate it for 5% cash back on up to $1,500 in combined purchases in bonus categories each quarter.

You can earn 3% cash back on dining, including takeout and eligible delivery services, and 3% cash back on online grocery purchases.

The Chase Freedom card also offers a $200 bonus after spending $500 in the first 3 months.

You can redeem your cash back rewards for statement credits, direct deposits, or gift cards.

The Chase Freedom card has no foreign transaction fees, making it a great option for international travel.

You can also use your Chase Freedom card to earn 1% cash back on all other purchases.

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