I signed up for the Chase Sapphire Preferred Visa last year
back when Chase was offering 50,000 points for spending $3,000 in three months
(current offer is 40,000 points).
This is a wonderful card—not only is cool-looking thanks to
the metal inside—it has benefits
like no foreign transaction fees and the ability to transfer points directly to
airline/hotel programs, including United, Southwest, British Airways, Hyatt, Priority
Club and Marriott. The card gives double points on all travel and dining
purchases and there’s a 7 percent annual points dividend on all new points
earned on purchases throughout the year – even points that have been redeemed.
Why did I say goodbye? Well, the card’s $95 annual fee was coming
due soon (it was waived the first year) and I just didn’t feel I used the card
enough to justify paying that. In fact, I hadn’t made a purchase on it in six
months.
I seriously considered paying the fee to keep it, however,
back in November, I signed up for the Chase Ink Bold business credit card,
which has a lot of overlapping benefits, including no foreign transaction fees
and direct transfer to other reward programs. Now, you do need some sort of legitimate
business to open this card (even small operations like freelance writing or
selling on Amazon or eBay).
The Ink card also has some pretty awesome 5X categories,
including at office supply stores and on cellular phone, landline, internet and
cable TV (on the first $50,000 spent annually). Then there are 2X points
per $1 on the first $50,000 spent annually at gas stations and for hotel
accommodations when purchased directly with the hotel. This card is also $95
per year, but the first year is free.
Now I could have downgraded my card to the no fee regular
Chase Sapphire card, however, I had read reports of some folks getting a bonus
for both the Preferred Visa and MasterCard, so I wanted to give myself the
opportunity to possibly open the MasterCard later this year. So I opted to
cancel completely. I didn’t attempt a retention offer the way I did with
Citibank, I simply requested to close my card and transfer the credit line to
another one of my existing Chase cards.
My hope in transferring the credit line was that my credit score
wouldn’t take a hit (sometimes cancelling a card can lower your credit score
because it can increase your debt to credit ratio, even if you pay it off
monthly). Also, I wanted some potential leverage in opening additional Chase
cards. If given a low limit on a new card, Chase allows you to transfer some
the limit from your existing cards.
So, while I’m sad to have said goodbye to my CSP, I hope we’ll
meet again in the future.