How to Downgrade Your Chase Credit Card Without Losing Points
When news broke that Chase was raising the annual fee for its popular Sapphire Reserve card from $ 450 to $ 550, many readers wondered if it was worth keeping the card. While the increased fees provide additional benefits for cardholders, $ 550 is not exactly a fun and easy amount to get rid of when you see it on your statement.
If you want to avoid paying this fee, closing your card is not the smartest move. This lowers your credit score and erases the positive payment history that you accumulated when you used your backup card. Experts recommend downgrading the card rating . Instead of completely severing ties with that card issuer, you stay and switch to another credit card with a lower fee or no fee at all.
But what happens to your accumulated points? Credit cards often erase your points when you close your card, which is one of the reasons we say not sit on your points for too long before redeeming them. If you change your mind and no longer want to use your credit card, all your hard work of earning rewards will go to waste. But what if you just switch the card to another from the same issuer?
The programming agreement for Chase Ultimate Rewards does not explicitly state this, but since I have this card, I called customer service to inquire about the policy. The representative I spoke with was not embarrassed.
The good news for Chase customers is that if you switch from your reserve card to another Chase Rewards card, you do not lose your points. This means that if you request to switch from your Reserve card to your Preferred card with an annual billing of $ 95, you will see the same balance in your Chase Ultimate Rewards account.
Just keep in mind that if you do a Product Change, your ability to earn and redeem points will be limited by the rules of the new card.
For example, when you redeem Ultimate Rewards points through the Chase portal (instead of transferring them to your travel partner), those points are worth 50% more; at your preferred level, your points are only worth 25% more when used in a chase portal.
This news leaves you with two main options. You can downgrade your card prior to the renewal date and continue earning points. Or you can take a look at your calendar, drop it on the floor, and book yourself a ticket in a sunny location. When we say don’t accumulate points , we are not joking.