Canceled My Chase Sapphire Reserve

[M_Smart007]

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@SALEEN961 wrote:

I did make sure to reallocate my available credit before closing the card, before hand my other Chase cards had my lowest limits by a large margin, but now they're pretty comparable with my other cards.

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For a minute, I was worried that you closed it with the full CL.

[AverageJoesCredit]

My guess is Chase has no shortage of high income users and probably to them, 25k spend , while high for me, probably doesnt match the clients they really fight for. Im sure if everyone was offered points or a $200 discount , no one would cancel and they'd just be taken for another year ride until said person wants to cancel again. When it comes to money and credit, banks dont care sbout any of us. The day you become not profitable, you become a liability. Good luck with your next endeavers

[ldkcivilservant]

I had the same experiance when I closed my CFU last week. You want to close? Ok. Done.

It's no problem, because I wasn't playing a game, I didn't want the card, but it was still a little... jarring.

[Anonymous]

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@red259 wrote:

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There is no reality where chase wants to lose customers. That would make zero sense. They already paid out bonuses to get these customers. They simply don't want to pay extra to retain customers and are hoping their new so-called benefits will get enough people to shell out the higher AF. 

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I mainly agree.   They want to lose (and can shutdown) unprofitable customers, but the general "$550 is too much" population are probably not worth expending money to keep, so if they want to go, Chase will let them go.   My guess is that Chase has data to show that AF sensitivity is correlated to low profitability (as you might expect)

Now it could more sophisticated and the right type of customer could get a retention offer on this card but haven't heard of this,

[Citylights18]

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@Anonymous wrote:

is downgrading to the sapphire preferred not a good move instead of closing it?

that one has a lower AF.

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I would think so over canceling it.

Unless its a situation as the OP was saying with a small limit on the CSR along with it being a newer account bringing down the AoA assuming the OP added it in 2016 when it first came out or later after that.

[kerplunk]

I was a profitable CSR customer for Chase at $450, but I'm glad they raised the fee as it helped me realize I didn't need that card. Ended up going with a no annual fee cash back card to replace that spend and I'm loving it.

[wasCB14]

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@Citylights18 wrote:

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@Anonymous wrote:

is downgrading to the sapphire preferred not a good move instead of closing it?

that one has a lower AF.

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I would think so over canceling it.

Unless its a situation as the OP was saying with a small limit on the CSR along with it being a newer account bringing down the AoA assuming the OP added it in 2016 when it first came out or later after that.

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But CSP still has an AF and a fraction of the rewards and benefits of CSR. The value of CSP is in the bonus, the (still?) waived AF for a year, and the primary rental coverage. Without the bonus, a lot of cards can beat CSP with $25k annual spend on a travel/dining card.

I took the view that another Freedom is nice when a fair number of quarterly categories are useful.

[mikesonthemend]

Before: https://www.cnbc.com/2017/01/18/jamie-dimon-i-wish-chase-sapphire-reserve-cost-jpmorgan-more-money.h... 

After: https://onemileatatime.com/chase-reserve-cost/ 

It was costing them too much

[MyFault]

I'm not sure i would have just closed the account entirely, however i'm not sure how much history you had with the card. Why not xfer the CL from it to your other cards and PC to the Sapphire no AF card with the lowest CL they allow, and keep it open?

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@Anonymous wrote:

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@red259 wrote:

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There is no reality where chase wants to lose customers. That would make zero sense. They already paid out bonuses to get these customers. They simply don't want to pay extra to retain customers and are hoping their new so-called benefits will get enough people to shell out the higher AF. 

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I mainly agree.   They want to lose (and can shutdown) unprofitable customers, but the general "$550 is too much" population are probably not worth expending money to keep, so if they want to go, Chase will let them go.   My guess is that Chase has data to show that AF sensitivity is correlated to low profitability (as you might expect)

Now it could more sophisticated and the right type of customer could get a retention offer on this card but haven't heard of this,

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The CSR was never a profitable card for Chase, so those who don't want to pay the new $550 AF i'm sure they're happy to let go if they don't want to stay. 

Not to knock the OP's spending, but i do believe that $25k annual spend isn't large to Chase. I'm still deciding whether to PC my CSP to CSR, but i have until July to figure it out. The DoorDash doesn't do much for me, nor does the Lyft membership, but i can definitely utilize them to use the credits to keep the effective AF down.

I think Chase's position moving forward is, to say goodbye to those who don't want the CSR now due to the increased AF and move it into a more profitable card for them. Vs how it's been since it was released.

[wasCB14]

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@mikesonthemend wrote:

Before: https://www.cnbc.com/2017/01/18/jamie-dimon-i-wish-chase-sapphire-reserve-cost-jpmorgan-more-money.h... 

After: https://onemileatatime.com/chase-reserve-cost/ 

It was costing them too much

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The CSR model (at least when it was a $450 card) definitely costs Chase a lot of cash with the $300 travel credit, 1cpp as cash, and 1.5 cpp as "travel cash". Add to that other UR cards at 1.5 cpp. Chase can probably get a cut of some sort of travel agent commission, but it won't be very much.

I don't really mind the Amex quirks and gimmicks because the gross amount of the credits is high and I can actually use them without much waste. But they probably cost Amex far, far less than their face value as Uber and Saks likely don't lose that much in revenue through trickle credits *while getting attention from generally affluent consumers, so they probably charge Amex very little*. And when miles cost Amex fairly little, they don't suffer by offering a lot of airline transfer bonuses.

Not that many people have the Schwab Platinum, and those that do still pay a big gross AF.

Lyft and DoorDash seem to be a big step towards the Amex model and away from the relatively "clean" former CSR model.