Good morning everyone. As you all probably know by now, the Chase Sapphire Reserve Credit Card will be adding 2 new benefits (Lyft Pink Membership & DoorDash’s DashPass with a $60 yearly credit) along with raising the annual fee from $450 to $550, beginning on January 12. Doctor of Credit has all the details on the key dates:
- Annual fee will increase to $550 for new users on January 12, 2020
- Annual fee will increase to $550 for existing users in April 2020
- Not possible to product change to the card until after January 12, 2020 (new $550 annual fee will be charged)
- Complimentary Lyft pink membership to be added on January 12, 2020
- $60 DoorDash credit to be added for 2020 and 2021 (this is is an annual credit that is valid from 1/12 – 12/31 each year)
The first thing I wanted to do was take a look at my 2019 credit card statements and see when the $450 annual fee posted to my Chase Sapphire Reserve. It looks like my annual fee posted on April 1, 2019. The new $550 annual fee will increase in April 2020, but no specific date is listed. If I am really unlucky, the $550 annual fee will post on my April 2020 statement, but if I am really lucky, the $550 annual fee will post next year on my April 2021 statement. I should have my answer in 3 months…
The next thing I did was look at all my Chase credit cards. I have 3 business credit cards and 5 personal credit cards. In total, I pay Chase $1,307 in annual fees every year. If you think that is high, you should read my post: I Paid $4,588 in Credit Card Annual Fees in 2019 & Was it Worth it?
The first idea that came to mind was that I could downgrade my Chase Ink Plus Business Credit Card to another Chase Ink Cash Business Credit Card and save myself the $95 annual fee, which would basically cancel out the $100 annual fee increase on the Chase Sapphire Reserve. The Chase Ink Plus is no longer available, but the only real difference between that credit card and the no annual fee Chase Ink Cash is that the Chase Ink Plus allows $50,000 of 5x transactions, compared to the Chase Ink Cash which only allows $25,000 of 5x transactions. I checked out my 2019 spending report on my Chase Ink Plus and it said I only spent $3,912.74. If I remove the $95 annual fee, I only spent a total of $3,817.74 in 2019.
I am 100% confident that all of those transactions earned 5x, so my Chase Ink Plus earned 19,089 Chase Ultimate Rewards Points last year. When I transfer those points to my Chase Sapphire Reserve, they are worth $286.34 in travel. After accounting for the $95 annual fee, I only generated $191.34 in value from this credit card. Since I am nowhere near maxing out the $50,000 in 5x categories, I would not be giving up anything by downgrading to the Chase Ink Cash. And don’t forget, I have another Chase Ink Cash (previously this card was a Chase Ink Bold), so I have access to another $25,000 in 5x categories, if I ever need it.
Even though I’m not super excited about these new changes, I still plan on keeping my Chase Sapphire Reserve. I like the primary car rental coverage, the 1.5 CPP travel redemptions, and the $300 annual travel credit. I don’t use Lyft very often when I’m home, but I do tend to use Uber and Lyft often when I travel, so I’m looking forward to my Lyft Pink Membership and the discounted rides and 10x earning. I’ve never used DoorDash, but I’ll figure out a way to use the $60 annual credit.
Do you think it makes sense to keep the Chase Sapphire Reserve and downgrade my Chase Ink Plus to the no annual fee Chase Ink Cash? What would you do in my situation? Please let me know in the comments section. Also, if you have any questions, please leave a comment below. Have a great day everyone.