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Help with C$R Decision

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Anonymous
Not applicable

Help with C$R Decision

Always need to check in with you guys before I make big decisions like this because you're way smarter & have helped me make great decisions in the past!

 

HISTORY:

- Opened C$R (Chase Sapphire Reserve) in 09/2016 for Dining & Travel charges only

- 1 or 2 nice vacations with the girls per year + a decent amount of dining spend made the AF (minus travel credit & other benefits) worth it for me (IMO)

        - Nothing crazy, I think about 7-10k spend on the card, annually

- Also have the FU that I use for general spend and combine those points with the C$R points 

- I usually redeem the rewards for travel through the Chase Portal (my go-to) OR I transfer them to United if I get more than 1.5 cent value for that specific flight

 

CHANGES:

- Chase increased the AF by $100 (to a total of $550) which will hit my 10/2020 statement

- Due to the pandemic, my Dining & Travel spend is at an all-time low 

        - Less than $800 total spend so far this year & I don't estimate it getting to $2,000 by 12/2020

                - (groceries in lieu of dining & 0 travel)

- Closing on a new home purchase on 07/2020 so I'm estimating my Dining & Travel expenses will be very low through the next 1.5 years (end of 2021-ish)

- I will get the full DoorDash credit ($60) before the end of the year but I doubt I'll get the full $300 travel credit unless I take a bunch of rideshares when we reopen, which I don't think I would do organically

 

MY PLAN FOR THE CARD:

- Downgrade the C$R to the Chase Freedom (already have the FU)

       - I won't miss the 3x points for travel or the travel benefits since I don't have travel plans for a while (maybe until 2022)

              - If there is a surprise vacation before 2022, I have 180,000 points accumulated in the C$R account to use

       - I won't miss the 3x points for dining, as I'm grandfathered in to the non-AF Cap1 Savor (4% CB Dining & Entertainment)

 

MY PLAN FOR THE POINTS:

This is where I need your help, guys:

180,000 points accumulated in the C$R account

- I think the best thing to do is transfer all points to United prior to closing the card. This way, I can at least have them sitting in my United account & more than likely will be able to redeem them for more than $0.01 per point whenever I decide to book a flight again in the future

- OR should I only transfer some points to United & leave some points on the card? Would there be any benefit in that? 

       - For example, let's say in 2 or 3 years from now the C$R or CSP makes sense for my spend again & I reapply, I'll have those points there to use for the travel portal

 

Does anyone have other suggestions that I may not have thought of?  Thanks so much, in advance for all of your help!

 

 

Message 1 of 23
22 REPLIES 22
CBrow
Regular Contributor

Re: Help with C$R Decision

The only thing I can think of is that if you downgraded and left a points balance, you can't use them for partner transfers. What are the points worth to you on United vs. if they were used as cash back redemption on the Freedom?


Message 2 of 23
Anonymous
Not applicable

Re: Help with C$R Decision


@CBrow wrote:

The only thing I can think of is that if you downgraded and left a points balance, you can't use them for partner transfers. What are the points worth to you on United vs. if they were used as cash back redemption on the Freedom?


I won't be able to transfer to travel partner once I downgrade, that's correct.

 

I'm assuming that if I transfer the points to United just before downgrading then they would be worth more than $0.01 per point at some time in the future when I want to use them but I honestly don't know. That's why I'm asking you guys if I should go all in with United or maybe only put half in United & leave the other half on the Chase Freedom. 

Message 3 of 23
Aim_High
Super Contributor

Re: Help with C$R Decision

This one could be tricky because "points" value can change dramatically and the travel industry is in a period of major realignment.  Who knows what points will be worth in the future? 

 

That said, one option would be to simply cash them out for $1800 at 0.01 ccp and put it into a high yield savings for spending wherever and whenever you do decide to travel.  Puts you totally in control and insulates you from any point value loss. 

 

Transferring to United would be an acceptable option also if you want to retain the potential for a higher return via travel redemption.

 

You can, however, transfer those CSR UR points over to either the Freedom or Freedom Unlimited before you close or downgrade the CSR.  It's easy to move points and I do it all the time.  (Top menu of UR; click "more" and "combine points".)  Later, you could just transfer back to the (new) CSP or CSR once you do reopen it. 


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Message 4 of 23
Anonymous
Not applicable

Re: Help with C$R Decision

If at signing, I had intended to keep the CSR as a long term rewards card, one bad year where I didn't feel I got my money's worth wouldn't ruin my feelings toward the card or its benefits. 

If I had planned on churning the card and just wanted the SUB, and wanted to dump the card the second it stopped returning my AF in rewards, then go right ahead. 

I run about $20-25k through my CSR annually, and I feel I'd break even on a lesser AF / lesser rewards card. It just wouldn't matter too much, mathematically. So long as my new CL wasn't impacted, I wouldn't feel cheated out of anything. 

I am somewhat vain and love plunking down a metal card, even just seeing it in my wallet. I'm big on the tactile feel of a card, the heft and design. My advice would be do what takes care of you, so long as you're under 5/24, and low INQ. Always keep your profile ready to apply Smiley Happy

Let us all know what you decide! 

Message 5 of 23
Citylights18
Valued Contributor

Re: Help with C$R Decision

I would go from CSR to CSP because you'll retain the doordash credit and the ability to move points.

 

You can still move points from the CSP to United at 1.5 but also have the option of going 2.5 to Hyatt.

 

Chase usually splits up promotions between Sapphire and Freedom so its good to have one of both.

 

FWIW, Freedom had 5x Gas in Q1 and 5x Groceries this quarter. That may be the best of the year already in.

Official travel point totals as of 10/21/24 (1,358,177 Total Points)
Chase Ultimate Rewards 696,884 | IHG One Rewards 144,957 | Hilton Honors 144,521 | AMEX Membership Rewards 102,729 | World of Hyatt 76,095 | Marriott Bonvoy 65,343 | Citi Thank You 38,153 | Choice Rewards 32,460 | United MileagePlus 13,316 | British Airways Avios 12,333 | Jet Blue TrueBlue 11,780 | Wells Fargo Rewards 2,858 | Southwest Rapid Rewards 2,447 | NASA Platinum Rewards 1,883 | AA Advantage 1,744 | Navy Federal Rewards 1,087 | Delta Sky Miles 175 | Virgin Atlantic Virgin Points 100 | Lowes Business Rewards 7,102 ($71.02) | Amazon Rewards 2,200 ($4.75) | Discover CB 10 ($0.10)
Message 6 of 23
Anonymous
Not applicable

Re: Help with C$R Decision

@Anonymous  I hardly feel like I'm churning the card, don't make me feel so guilty! Smiley Wink I've had it for a solid 4 years & paid three AFs.

 

I did sign up with the intention of it being a long term travel card but my spend pattern and travel plans are going to be thrown off for a minimum of 2 years, due to the pandemic & a home purchase, not just one bad year.

 

I share your sentiment on the metal card feel and I've been proud to have the C$R and take advantage of the benefits over the years. I've used the Primary Rental Car Insurance several times on vacation, utilized the Priority Pass lounges when I've traveled internationally, Global Entry, etc. But $550 is large fee if you're not utilizing the benefits for a while.

Message 7 of 23
jdbkiang
Established Contributor

Re: Help with C$R Decision

Not sure if this was suggested, but what about just keeping the points and downgrading. In the future, if/when travel opens up again, you can upgrade back to the CSR and use the points as is. 







[2/2019]
Message 8 of 23
Anonymous
Not applicable

Re: Help with C$R Decision


@jdbkiang wrote:

Not sure if this was suggested, but what about just keeping the points and downgrading. In the future, if/when travel opens up again, you can upgrade back to the CSR and use the points as is. 


Like any investment, this all comes down to how you predict things will change and timelines.     Generally, with exceptions, points become less valuable over time as airlines and hotels revise their award charts.   Once the current situation improves, it seems reasonable that carriers and hotels will be eager to drum up business, and may lower prices significantly.  They may also improve the award charts, but as cash fares become cheaper, points might appear to be less valuable.

 

 

It also depends on what sort of fares you are looking at.  Points are almost always going to be the best way for international premium cabin fares, much less so for domestic or international economy.   So if you are doing the former, and expect to travel on united or partner, transferring might be a good thing to do, especially now that those miles don't expire.

 

As AIM_HIGH says, you could also cash out at 1cpp and put it in a high yield savings.   However, even though that might be the best, I always find it hard to do: you get the card expecting a min of 1.5cpp and getting less seems like defeat!

Message 9 of 23
NRB525
Super Contributor

Re: Help with C$R Decision

180,000 UR is a large value. I would not be too quick to just give them to United.  
I would transfer them into the CFU as a least worst option. Worst case there, you redeem them at 1c through Chase. 

Best case, you apply for a new CSR in 2021 for the updated SUB, pull the UR back to CSR and do some awesome redemption with the ~250,000 UR.

High Bal Jan 2009 $116k on $146k limits 80% Util.
Oct 2014 $46k on $127k 36% util EQ 722 TU 727 EX 727
April 2018 $18k on $344k 5% util EQ 806 TU 810 EX 812
Jan 2019 $7.6k on $360k EQ 832 TU 839 EX 831
March 2021 $33k on $312k EQ 796 TU 798 EX 801
May 2021 Paid all Installments and Mortgages, one new Mortgage EQ 761 TY 774 EX 777
April 2022 EQ=811 TU=807 EX=805 - TU VS 3.0 765
Message 10 of 23
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