It is Sebastian from SMB and today we are going to talk about what the Chase Sapphire Preferred after getting approved for the reserve. I think it was a general misconception when you have a credit card, you don’t use, you should close it and that is a good thing because the main issue is that you might forget about it and you might end up having to pay interest or having delinquencies related to forgetting about any balances or any subscriptions you have, like Drop box.
The problem of closing a card is that a negative affects your credit, so things like your image of credit all go down. If you close a card, for most people, instead of closing the Chase Sapphire Preferred, it doesn’t make sense. Keeping a card that has a 95 dollar annual fee, I definitely wouldn’t do products change.
So a product change is when you change one product to other products within Chase pretty straightforward, and there’s no transaction cost or anything related to doing this change. So what I would do is to change the taste I preferred, see either the Chase Sapphire the freedom unlimited or the freedom.
Three of these have no annual fee, which means that you’re not paying next to $95. You already have the reserve, which allows you to transfer to the partners and also book at a 1.5 rate effectively 33 percent off. So you really don’t need the Chase Sapphire Preferred anymore.
The case where the Chase Sapphire is that for whatever reason, you really like having another sapphire. Otherwise, there’s no real benefit other than some travel perfect. If you have the reserve, you already have all these carts. So the chase freedom unlimited is a really good everyday card for non category spends.
So when you think of category spin, you may think of things like restaurants or traveling, maybe even home stores or gas. So if you do category spend, there are cards that help you get 5% back or maybe 3% back, like the Reserve gets a 3% pack on meals. So for your entire non category spends, if you have a lot of those, I would recommend the freedom unlimited.
It gets 21.5 back in terms of your chase points. If you convert those, depending on how you value them that can be 1.5 cents to three cents per transaction, per dollar spent, so to freedom unlimited is a good card, if you have random spam. Finally it’s a chase freedom, and it’s actually the solution that would recommend.
What I would do the reason being is that it has a 5x special categories. So this allows you to get 5% back and Ultimate Rewards points every quarter, depending on what category it is. It might be grocery stores a might be online shopping, it’s been Amazon before, it’s been gas. So if you’re willing to spend, maybe five or ten minutes, every three months, taking a look at what the quarter bonus is and like mentally thinking.
This is my gas card for this month or this is my grocery card for this month, it gets you a lot of points back, it caps off at 1500 per quarter, which is not bad. If you’re getting $75 at a minimum and value from the span, you would have otherwise gotten compared to a one percent card, maybe fifteen dollars, that’s a $60 difference to do the product change and start that process.
You can either send them a secure message on their online website or give them a call. If you’ve had the Chase Sapphire Preferred for less than one year, there might be a few steps that are required, so they might not let you change it from the Chase Sapphire Preferred all the way to the freedom right away. Some people have to go actually from the Chase Sapphire Preferred to the Chase Sapphire, and then to the freedom or to freedom unlimited.
The next question you may ask me is what if I already have the freedom, you can actually have multiple freedoms. Even if you have one, you can get a second one and multiply your categories spend, and that’s exactly literally my goal.
I have a chase freedom, and I have a Sapphire Preferred and a sapphire reserve. And once my gear is up for two preferred, I’m going to move it over to a second freedom. I hope that was helpful, and the one tip is not to cancel your Chase Sapphire Preferred.
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