Should You Downgrade Chase Sapphire Preferred for Better Benefits

If you're considering downgrading your Chase Sapphire Preferred, it's essential to weigh the benefits of doing so. The Chase Sapphire Preferred has a 60,000-point bonus, which is a significant incentive for many cardholders.

However, some cardholders may find that the benefits of the Chase Sapphire Preferred don't quite align with their spending habits or financial goals. For example, if you're not using the card for travel or dining, the 3X points on those categories may not be as valuable.

Downgrading to a more basic Chase card, such as the Chase Freedom, can be a good option for those who want to simplify their credit card portfolio. The Chase Freedom offers a 20,000-point bonus and 5% cash back on up to $1,500 in combined purchases in bonus categories each quarter.

You can only move within one product family when downgrading a Chase card, so if you have a co-branded airline card, you can't switch to a Sapphire card.

Chase offers several great cards, and you can switch from the Sapphire Preferred or Sapphire Reserve to a card like the Freedom Unlimited, which earns Ultimate Rewards points.

To request a downgrade, pick which card you want to switch to and call the number on the back of your Chase credit card to ask the agent to make a change.

It's a good idea to have a plan when trying to downgrade or convert a credit card, and to prepare a list of possible downgrade options before calling Chase.

You'll want to protect your rewards if you're downgrading a Chase card, especially if you have a high-end card like the Sapphire Reserve or Sapphire Preferred. If you downgrade to a Chase Freedom Flex or Freedom Unlimited, you'll lose the ability to transfer points to hotel and airline partners, unless you have another fully transferable Ultimate Rewards-earning card.

You can transfer your points to a hotel or airline partner before the downgrade, but make sure you choose a partner you frequently book with, as the points will be stuck with that partner once transferred. This is a good idea, as it ensures you get the most value out of your points.

Consider transferring your points to a household member if you have an eligible card, but you'll need to call Chase to request this, as it can't be done online.

If you're no longer getting value from a credit card, there's no reason to pay the annual fee.

Most large card issuers offer no annual fee products, which they'll often let you convert or downgrade to.

Keeping accounts open for long periods of time is a great way to improve your overall credit score.

With my Chase Sapphire Preferred card, I was able to downgrade the card to the no annual fee Chase Sapphire card.

I wasn't able to convert to the Chase Freedom card because my account is less than one year old.

Unofficially, a phone representative mentioned that I'll be able to convert to a Freedom card after my account anniversary.

If you're in a similar situation, make sure to call Chase and downgrade to the Sapphire card prior to your annual fee posting.

Downgrading your Chase Sapphire Preferred card can have some potential risks to consider.

You'll lose the ability to transfer points to hotel and airline partners, which can limit your flexibility in redeeming your rewards.

If you're used to getting bonus value from your points when booking travel through Chase Travel, you'll no longer have access to this benefit.

This could result in your rewards becoming less valuable, which might not be what you want.

You can only move within one product family when downgrading a Chase card, so if you have a co-branded airline card, you can't switch to a Sapphire card.

To request a downgrade, simply call the number on the back of your Chase credit card and ask the agent to make a change.

It's essential to have a plan when trying to downgrade or convert a credit card to another bank offered product, so take some time to see what your options are prior to calling Chase.

You can downgrade the Chase Sapphire Preferred card to a Chase Freedom or Freedom Unlimited card, but you might be ineligible if your account is less than a year old.

You can close your Sapphire Preferred account to avoid paying the annual fee, but then you'll be unable to convert to a Freedom product in the future.

To avoid paying the annual fee, it's best to give a simple answer when asked your reason for downgrading, such as not wanting to pay the fee.

You can downgrade the Chase Sapphire Preferred, but you can only move within one product family, so if you have a co-branded airline card, you can't switch to a Sapphire card.

To request a downgrade, simply call the number on the back of your Chase credit card and ask the agent to make a change. You might get a prorated refund if you call within 30 days of your annual fee being charged.

It's a good idea to have a plan when trying to downgrade or convert a credit card to another bank offered product, so take some time to see what your options are before calling Chase.

Calling Chase can be a straightforward process, but be prepared to explain your intentions and have your list of possible downgrade options ready.

You might be ineligible to convert to a Freedom product if your Chase Sapphire Preferred account is less than a year old, but you can still close your account to avoid paying the annual fee.

Downgrading your Chase Sapphire Preferred card to the Chase Sapphire card can be a good option, as it's a no annual fee card with some benefits, and you can keep your account open and avoid paying the $95 annual fee.

Remember that when you change products, you might lose some card benefits, such as the ability to transfer your points to hotel and airline partners or get bonus value from your points when booking through Chase Travel.