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Million Mile Secrets reader, John, commented:
I recently got the Chase Sapphire Reserve card because of the sign-up bonus and 3X bonus on dining. Plus, I’ll use the $300 annual travel credit without a problem. Is there any reason to hold on to the Chase Sapphire Preferred Card?
Great question, John! And thank you for being a continued reader of our blog!
There’s no reason to keep both cards. Because the Sapphire Reserve has all of the same benefits as the Sapphire Preferred, and then some.
So you can downgrade your Sapphire Preferred card to a no annual fee Chase card and avoid having duplicate benefits. And you can save money on the annual fee.
I’ll compare both cards. And explain what I recently did in this situation!
Sapphire Reserve Vs. Sapphire Preferred
Link: Chase Sapphire Preferred
Link: Chase Sapphire Reserve
With the Sapphire Reserve, you get all of the same benefits as the Sapphire Preferred, plus a few extra. For example, you only get a $300 travel credit per cardmember year with the Sapphire Reserve.
So the extra benefits with the Sapphire Reserve include:
- 3X Chase Ultimate Rewards points on travel (excluding $300 travel credit) & dining purchases
- $300 annual credit for travel purchases such as airfare and hotels
- $100 statement credit for Global Entry
- Chase Ultimate Rewards points are worth 1.5 cents each through the Chase travel portal
- Priority Pass Select membership for access to airport lounges
- Visa Infinite benefits like $25 food and beverage credit at the Luxury Hotel Collection and complimentary car rental elite status with Silvercar
To get the extra perks with the Sapphire Reserve, you’ll pay a higher annual fee. The Sapphire Reserve annual fee is $450 per year. While the Sapphire Preferred annual fee is $95 per year and is waived the 1st year you have the card.
But the additional perks of the Sapphire Reserve offset the annual fee. For example, the $300 travel credit effectively makes the Sapphire Reserve annual fee $150 ($450 annual fee – $300 travel credit).
So for $55 more dollars ($150 effective Sapphire Reserve annual fee – $95 Sapphire Preferred annual fee), you’ll enjoy better perks, like 3X bonus on travel and dining purchases. And you’ll increase the value of all your existing Chase Ultimate Rewards points.
What If You Have Both Cards?
Folks like John who have the Sapphire Preferred and Sapphire Reserve cards can consider downgrading the Sapphire Preferred to a no annual fee card.
This way, you can save $95 a year by not having to pay the Sapphire Preferred annual fee.
For example, after getting the Sapphire Reserve, I downgraded my Sapphire Preferred to the no annual fee Chase Freedom Unlimited.
Remember when you downgrade, you will NOT be eligible to receive the new card sign-up bonus. But your:
- Account history information will transfer to the new card
- Credit card number will be the same
- New card will NOT show up as a new account on credit report
And downgrading your card is not automatic. Chase will review your account for eligibility. Usually, you’ll need to have the card open for 1 year before making a change.
To check if you’re eligible to downgrade, you can call Chase at the number on the back of your credit card. Or send a secure message after you log-in to your online account.
Folks who have both the Sapphire Preferred and Sapphire Reserve can downgrade the Sapphire Preferred to avoid duplicate benefits and save money on annual fees.
Plus, the Sapphire Reserve gets you better perks. Like the card’s annual $300 travel credit and extra bonus points on travel and dining purchases.
If you have both cards, you can consider downgrading the Sapphire Preferred to the no annual fee Chase Freedom Unlimited like I recently did. This card earns 1.5X Chase Ultimate Rewards points on all purchases with no cap!