Based on my scenario, would you keep a CSP or go for the CSR?

[Anonymous]

Currently  I have 190k points on my CSP card. Right now chase is letting me cashout at 1.25, and I'm wondering if I do a product change, would I be able to do the same and have more benefits. Here's my gameplan:

1. Product change to CSR
2. I am assuming I will have to pay a af (since I just paid in apr for my csr af, it should be $455 (Chase deducts af fee from csp)).
3. Cash out at 1.5 and use the travel credit within a year.
4. PC in april next to Freedom Unlimited (wonder if I have to pay for a 2nd year)?

So if all goes according to plan thats:

$2850-460= $2395

if I keep the CSP thats:

$2375

Any suggestions?

[Aim_High]

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@Anonymous wrote:

Currently  I have 190k points on my CSP card. Right now chase is letting me cashout at 1.25, and I'm wondering if I do a product change, would I be able to do the same and have more benefits. Here's my gameplan:

1. Product change to CSR
2. I am assuming I will have to pay a af (since I just paid in apr for my csr af, it should be $455 (Chase deducts af fee from csp)).
3. Cash out at 1.5 and use the travel credit within a year.
4. PC in april next to Freedom Unlimited (wonder if I have to pay for a 2nd year)?

So if all goes according to plan thats:

$2850-460= $2395

if I keep the CSP thats:

$2375

Any suggestions?

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I like my CSR and plan to keep it long term.  I get a lot of value out of it, especially with the quadfecta cards (CF, CFU, INK).  But I know different cards fit some people better.  Unlike some, I also balance SUBs and rewards in the overall picture of my credit file.  I don't normally apply for cards I don't plan to keep. 

That's a lot of work and changes to net only $20 difference, IMO. 

Rumor on the street today is Chase has waived the increase in CSR's AF through the end of 2020 due to coronavirus, so you might net more than your estimate.

[TSlop]

Personally, I wouldn't go through the work just for the $20. However, if you see good value with the CSR perks, it would be worth it. You could maybe consider that with the $300 you would be at $2,695. I don't get enough value out of it to make it worth it for me, but maybe that $300 could boost your $20 difference.

[Citylights18]

You can only PC every 12 months. If you PC to CSR then you wont be able to PC to a CFU until at least June 2020.

But the strategy, assuming you don't spend on the Sapphire and just reedem you would be able to pull $480 more out of your points with the 1.5 against a net AF of $255. If you are counting additional earn from having the CSR that margin grows even more.

The question to me is are you putting enough money on the CSR for it to make a difference? Check your annual spend on your CSP to see if it makes a difference.

[Anonymous]

The $300 travel credit available with the Reserve is so broad you almost can’t help but use it. (It used to reset based on calendar year, which allowed you to get $600 in credit for just one annual fee. I believe they fixed that.) So the fee difference against the Preferred isn’t nearly as large as it appears.

Both cards allow transfer of points to partners. I don’t believe the partners are different or that the Reserve offers any advantages when transferring. My wife and I get considerable value transferring to Hyatt.

[Aim_High]

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@TSlop wrote:

Personally, I wouldn't go through the work just for the $20. However, if you see good value with the CSR perks, it would be worth it. You could maybe consider that with the $300 you would be at $2,695. I don't get enough value out of it to make it worth it for me, but maybe that $300 could boost your $20 difference.

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That's true.  If you can use any of the travel credits (up to $300 credited automatically on any travel, Global Entry reimbursed, $60 Door Dash credit in 2020 and $60 in 2021, etc.)  that further offsets the AF.    You don't have to fly to use the travel credits.  Chase automatically credits your account for not only flights but hotels/motels, rental cars, tolls, parking, ferries, taxis/limos, trains, cruise ships etc.  Travel is already slowly coming back but even a short weekend local trip might help you to claim the $300.  The wide-ranging and easy automatic travel credits are one thing I love about my CSR.

The difference in CSP and CSR in AF is not as great as it sounds once you factor in all the credits and increased value.  If you travel or dine out at all (unless you already have other favorite cards for that spend), they could easily pay for themselves from my valuation. 

I know you're thinking about getting rid of even the CSP, but here's a link to a comparison I wrote of the CSP and CSR.  It was last year before Chase raised the normal fee on CSR but the principles are the same.  Add the new Door Dash and Lyft benefits intot the equation also.   Just something else to consider. 

https://ficoforums.myfico.com/t5/Credit-Cards/Is-Chase-Sapphire-Preferred-credit-card-worth-it/m-p/5...

[Anonymous]

The other issue with the original plan is that the Freedom Unlimited is of little value unless you have a Sapphire card to which you can transfer points. The raw earnings rate is 1.5%. If you can transfer points to the Reserve, you're earning at least 2.25%. That's the difference between being better than or worse than a generic 2% card.

[Aim_High]

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@Anonymous wrote:

The other issue with the original plan is that the Freedom Unlimited is of little value unless you have a Sapphire card to which you can transfer points. The raw earnings rate is 1.5%. If you can transfer points to the Reserve, you're earning at least 2.25%. That's the difference between being better than or worse than a generic 2% card.

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Right, that 50% bonus in UR points is something I find very valuable. For travel redemptions, I can transfer over points from CFU @ 2.25% or CF @ 7.5% on the rotating categories. On my INK Cash card, I can transfer over those 5% categories also @ 7.5% (cellphone and cable-internet bill, plus any office supply store purchases.)  That's definitely something I factor in when I calculate the value I get versus the CSR AF. 

I got the idea that OP wasn't concerned with long-term on the card though.  Either he has better options or primarily got the CSP for the SUB to churn.  In that case, downgrading to the CFU mainly as a 'placeholder' might be the plan.  Or maybe he does not have a flat rate 2% card at the moment, so the 1.5% is attractive as it is.

[Anonymous]

Thanks for all the advice, and I appreciate everyone chimming in. I do have other chase cards as well such as the

- Business ink cash and cash unlimited, freedom, aarp. I basically use freedom for 5% catogories, ink cash for cable/internet and phone 5%, csp for dine/restuarants, and cash unlimited for everything else. I am not a big traveler or spender. The reason I am thinking about downgrading or going another path is because I've had the csp for about 3 years and have not taken advantage of anything. This year I planned to travel, but due to the events, that changed, so nearly $300 in af cost, is starting to add up especially when I'm not spending a ton (I have almost the trifeca of wf cards as well (cashwise and propel), a target and lowes to get 5%, and a amex card that gives me 3% in shipping.

[elixerin]

@Anonymous @Aim_High 

tons of good advice, sifting through the thread i think the recent tempo benefits werent mentioned/just released and might also play a tipping factor 

https://www.google.com/amp/s/www.doctorofcredit.com/chase-announces-major-temporary-benefits-on-sapphire-reserve-preferred-1-5-cents-cashout-easy-travel-credit-450-renewal/amp/