Good morning everyone, I hope your week is going well. I am struggling to make a decision regarding the Chase Sapphire Reserve Credit Card. I really want the credit card and sign up bonus, but due to the Chase 5/24 rule, I am not getting any new Chase credit cards anytime soon. I also have a few Chase business cards that I don’t use much. Should I convert my Chase Freedom Credit Card to a Chase Sapphire Reserve Credit Card? Here are the facts in my situation:
- I am way over the Chase 5/24 rule, so I am not getting a new Chase credit card anytime soon
- I am not a Chase Private Client and have not been pre-approved for the Chase Sapphire Reserve or Chase Ink Preferred
- I currently have a Chase Freedom, Chase Ink Cash, and Chase Ink Plus
- I do not have a Chase Sapphire Preferred or Chase Freedom Unlimited
- I do not max out my Chase Ink Cash or Chase Ink Plus 5x categories
- I do not max out my Chase Freedom 5% rotating cash back categories
- My Chase Ink Plus annual fee is due in March 2017
- You can only convert a Chase Freedom, Chase Freedom Unlimited, Chase Sapphire, or Chase Sapphire Preferred to a Chase Sapphire Reserve.
- You need to have a credit line of at least $10,000 to be approved for the conversion (my Chase Freedom has a $25,000 credit line).
Here is what I am planning on doing:
- Keep my Chase Ink Cash open (since there is no annual fee)
- Downgrade my Chase Ink Plus to another Chase Ink Cash in March 2017 (to avoid paying the $95 annual fee)
- Without the Chase Ink Plus, I will not have any premium Chase credit cards that allow me to transfer Chase Ultimate Reward points to travel partners
- If I convert my Chase Freedom to a Chase Sapphire Reserve in December 2016, I should be able to take advantage of the $300 travel credit in December 2016 and again in 2017
- The $600 in travel credit will offset the $450 annual fee on my Chase Sapphire Reserve and save me from paying the $95 annual fee on my Chase Ink Plus
Here are some of the negative aspects of converting my Chase Freedom to a Chase Sapphire Reserve:
- I am forgoing the possibility of getting a sign up bonus on the Chase Sapphire Reserve (very unlikely unless Chase loosens up on their 5/24 rule)
- I am forgoing all future 5% rotating cash back categories on my Chase Freedom. Doctor of Credit reports the first 2 quarters of 2017 as follows:
- Q4 2016: Department stores, wholesale clubs, and drugstores – as my wardrobe will attest to, I do not shop at department stores or wholesale clubs. I buy Walgreens gift cards online for 10-12% discount.
- Q1 2017: Gas stations & commuter passes – I do not have a car in SF and have no rental car needs in Q1. For commuting, I use a pretax transportation card (EBC Flex).
- Q2 2017: Grocery stores & drugstores – I don’t spend very much buying groceries at Trader Joe’s. For drugstores, I buy Walgreens gift cards for a 10-12% discount.
Those are all the facts and negatives of following through with the product conversion. Am I missing anything important? Did I overlook anything important? If you have any questions, please leave a comment below. Have a great day everyone!
P.S. The power went out in my apartment building halfway through writing this post on Monday night. I grabbed my laptop, turned on my iPhone’s flashlight, and connected to my iPhone’s WiFi hotspot to finish this post #dedication