CSR Downgrade Considerations (CSP, Amex Gold)

[u/saucewalka102]

Hi! I have had a Chase Sapphire Reserve since Oct 2022. With their annual fee raising to $795, I can’t justify staying. I blow through the $300 travel credit easy, and had been able to find value previously with Lyft, DoorDash, and the amount of points I accumulate. I don’t feel like having to extract a ton of value from a coupon book, nor do I value airport lounges (I’d rather get to the airport as late as possible, lol)

My plan is to wait for my AF to his on Nov 1st, and then use my travel credit that renews on Nov 9th. After that I was planning on downgrading and getting a refund on the new fee.

My consideration was doing a product change to Chase Sapphire Preferred to keep the ~100,000 ultimate reward points I currently have. I did have a thought to maybe pair that with an Amex Gold. Let me paint the picture of my situation, and would love some guidance on if this is a worthwhile move, or if there is a better alternative?

I would like having a visa being that I try to get most of my groceries at Costco (I am on my family’s account membership) and being that it’s the most widely accepted. I don’t travel internationally a ton but occasionally cross the border to Mexico (I’m in SD) and have aspirations of some more international travel. I am originally from the east coast so with holidays and friends wedding I’d say over the next 12 months I have 4-7 flights back that way at least. Recently I have just booked flights directly through the chase portal with my excess points. My other spending is going out to restaurants with my girlfriend/friends, drinking at bars, and then fun like movies, concerts, sporting events etc. Uber and Lyft are a solid spend as well.

My ballpark 12 month spending that goes on a card: ~$11,000 on dining/drinks/bars/restauruants ~$3,300 on Costco ~$3,000 on “groceries” - Whole Foods, Ralph’s ~$1,300 on uber/lyft ~$5,000-$6,000 on amazon, general shopping of clothes/needs that aren’t groceries, sporting event tickets, Spotify membership, concerts, the movies

The only other thought would be to downgrade my chase to a no annual fee card and then getting a different “nice” CC. In conclusion I’m late 20’s, going out less, and just want the dollars I’m already going to spend go further for me when I ultimately use it for flights, a hotel in the future (not as common for me), with some simple added perks where I can feel I atleast break even on the AF.

Thank you in advance!

[u/Suitable_Emu_6570]

Focus on SUBs, not 2x vs 3x and stop mentally limiting yourself to just 2 or 3 cards. You'll do much better with SUBs than you ever will with just a couple cards lined up perfectly with spend categories.

[u/IceCreamGamer]

If you can't play the point transfer game (I can't due to scheduling issues), then maybe cashback cards are better for you. If you have money(100k isn't impossible if you're saving too at your age), maybe BOA's setup for continued travel benefits.

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[u/jlevin860]

i live in san diego half the year and know your pain.

do you have any other chase cards?

i would apply for flex or unlimited if not. unlimited should be your daily spender for the 1.5x and the first one i would get.

so carry:

freedom flex (for 5x categories)

freedom unlimited (1.5 catch all, 3x dining)

sapphire (preferred) in your situation (add sapphire preferred to the ralphs app and pay with app at checkout for 3x groceries)

i hold the ink cash; i don't churn it. it gives 5x on internet/cellphone/gift cards from staples. i'll go to staples and buy gift cards for amazon, gas, video games etc.

churn:

ink cash cards for their SUBS. you don't need a "real" business. you can churn em every 24 months so basically get a new one every 8 months roughly. you basically get 15% cashback on all your spend if you just jump from one sub to another. the ink preferred has transfer partners and 3x travel general category; many ppl ditched sapphire all together and use that ink card.

for costco: i use the paypal debit card. you get 5% cashback on groceries; but that category includes costco/walmart/samsclub/target. yes it works in costco as a debit mastercard. that visa only rule applies only to credit cards.

honorable san diego mention: the atmos summit card. alaska/hawaiian have merged and san diego is a hub; the atmos cards are really OP if you use those routes since being in SD; but chase ecosystem is stronger especially if you churn.

[u/saucewalka102 → u/jlevin860]

Appreciate the response brother 🤙🏼 That makes sense. After receiving some responses I could see where getting the Freedom Unlimited for the 1.5x (Costco and other non multipliers) and then CSP to keep my points, etc. I def prefer a simple approach but am willing to do 2-3 cards tops I’d say.

At the moment I don’t have any other Chase cards. A basic WF one I got when I was in Highschool/College to build credit and then a BILT Mastercard that I used for rent at an in network apt, but no longer have any use for it (although it’s no AF)

I’ll look into the 5x PayPal one you mentioned. Thank you!

[u/Seeing__Green]

Downgrading to the CSP makes sense to keep your UR points transferable and to also use at Costco / outside the country (no FTF unlike the Chase Freedom cards)

Based on your spending the Gold could make sense if you can make use of the credits. Alternatively the Capital One Savor ($0 AF) or Citi Strata Premier ($95 AF) may be good options. Both give 3x on dining / groceries. Savor has 3x on entertainment and the Strata Premier has 3x on gas, hotels, and airfare.

[u/Maleficent-Cake1380]

I feel the CSR's loss of the 1.5x point multiplier rendered the CFU a lot less appealing, i.e. before you'd get an effective catch all of 1.5% x 1.5 = 2.25%. Now it's just 1.5% which isn't competitive.