Author Topic: Another CC thread - Chase Sapphire Preferred?  (Read 8982 times)

thedayisbrave

  • Pencil Stache
  • ****
  • Posts: 700
  • Location: Raleigh, NC
  • CFO @ My Life
Another CC thread - Chase Sapphire Preferred?
« on: July 20, 2014, 08:52:03 PM »
I currently am an authorized user on my mom's CC account.  I'm 24 and rarely use it, only for large purchases which I warn her about ahead of time - then I transfer her the cash and we pay the bill in full each month.  I don't abuse credit cards, but I feel like it's time for me to get my own.  The primary reason we combined was so we could both earn rewards and I could use them (as I travel more frequently than she does).  However, we've been disappointed in that respect lately (as far as how far our rewards get us). 

Looking at the Chase Sapphire Preferred card... I won't be traveling as much as I used to as I start work in the fall, but still hope to travel a decent amount on vacations.  My primary reason to open this card would be because I just purchased a home and the sign on bonus rewards sound really good, and I know I will be spending the amount required in the next few months on furniture and the new home.  I only use CCs for the benefit of rewards/points - not because I don't have the money in my account.

So, would love to hear the good/bad.  I seldom use credit cards otherwise, only for large(r) purchases such as gas, groceries, massages, etc.  My main concern is I have to use my debit card 30x a month in order to receive the high interest rate my credit union offers of 2%.  I just know my spending habits will go down once I start my job (well, they'll go up in the very short term as I get everything settled, but go down after that).

Anyway, sorry for the lengthiness... would love to hear what you have to say.  Thanks!

horsepoor

  • Magnum Stache
  • ******
  • Posts: 3086
  • Location: At the Barn
  • Horses: for sanity & poverty!
Re: Another CC thread - Chase Sapphire Preferred?
« Reply #1 on: July 20, 2014, 09:46:50 PM »
It has a $95 a year maintenance fee, so it's worth getting for the signing bonus, but not as a long-term cc.  I also have the Chase Freedom, which doesn't have an annual fee, and as far as I can tell, the rewards are the same. 

milesdividendmd

  • Handlebar Stache
  • *****
  • Posts: 1913
  • Location: Portlandia
    • Miles Dividend MD
Re: Another CC thread - Chase Sapphire Preferred?
« Reply #2 on: July 20, 2014, 10:40:38 PM »
Great card. Get it !

Just downgrade it to the free version next year before the annual fee comes due.



PilotsWife

  • 5 O'Clock Shadow
  • *
  • Posts: 39
Re: Another CC thread - Chase Sapphire Preferred?
« Reply #3 on: July 21, 2014, 01:11:51 AM »
Chase doesn't have the fee-free Sapphire anymore, so it would have to be downgraded to a Freedom or Slate or some other card.

milesdividendmd

  • Handlebar Stache
  • *****
  • Posts: 1913
  • Location: Portlandia
    • Miles Dividend MD
Re: Another CC thread - Chase Sapphire Preferred?
« Reply #4 on: July 21, 2014, 02:18:23 AM »

Chase doesn't have the fee-free Sapphire anymore, so it would have to be downgraded to a Freedom or Slate or some other card.

They do!  So you can get the preferred and then downgrade before the fee.

https://m.creditcards.chase.com/chase-sapphire.aspx



Jags4186

  • Pencil Stache
  • ****
  • Posts: 596
Re: Another CC thread - Chase Sapphire Preferred?
« Reply #5 on: July 21, 2014, 06:50:35 AM »
Really depends on how you value your points/how much effort you want to put into it. 

The Barclay World Mastercard gives you a 2.2% cashback as long as you redeem cashback towards travel purchases.  If you are one who prefers to pay cash for your flights this is the best every day spend card.  It costs $95/year (you need to make sure you spend enough to make it worthwhile).

As for the Chase Sapphire...again it depends on how you value your points.  The Freedom or Slate absolutely does NOT have the same benefits as the Sapphire Preferred.  The ideal combo is having BOTH the Chase Freedom and the Chase SP.  Slate has no rewards program at all and he Freedom has rotating 5x categories + a 10% bonus if you have a Chase checking account.  All your spend should go on this card.  Transfer to SP to then transfer to travel partners.  If you don't want to open a chase checking account, the SP gives you a 7% bonus.  Plus if you use the rewards mall you can quickly rack up points.  For example I booked an open jaw flight New York to Paris then Amsterdam to New York.  Cash value was $1400 some odd dollars.  I transferred 60000 Chase points to United, booked the flight and spent $128 in taxes.   That's a slightly lower redeem value than the Barclay card (2.12cpm vs 2.2) but I was able to rack up points relatively quickly through maxing out 5x spend bonuses on the Freedom or buying stuff through the ultimate rewards mall.

So it was worth it to me.

thedayisbrave

  • Pencil Stache
  • ****
  • Posts: 700
  • Location: Raleigh, NC
  • CFO @ My Life
Re: Another CC thread - Chase Sapphire Preferred?
« Reply #6 on: July 21, 2014, 07:28:49 AM »
Thanks for the replies so far, everyone.  Ideally, I'd be able to use my reward points for travel (about 1-2 trips/year) & have minimal out-of-pocket expenses (i.e. for taxes/airport fees etc.) I've been able to maximize my points in the past by getting free flights and they really help cut down the cost of any trip cause the rest of my spending during the trip can be somewhat controlled (I usually stay with friends, can eat cheaply, etc.)

What would be the benefit of opening both a Chase Freedom & Chase SP if I just transferred my points to the SP? Do I HAVE to have a Chase checking to do that?

I'd estimate that after the 'spending spree' of the next few months, I'd average putting about $500/month on the card. 
« Last Edit: July 21, 2014, 07:46:32 AM by thedayisbrave »

tweezers

  • Stubble
  • **
  • Posts: 187
Re: Another CC thread - Chase Sapphire Preferred?
« Reply #7 on: July 21, 2014, 09:03:41 AM »
We use a combination of cards to maximize rewards:

Chase Freedom-use on rotating categories to get 5% back, Chase rewards mall (but also check ebates.com ....rewards can be higher than Chase mall)
Costco American Express-Costco (1%), Travel and dining (2%), gas (3%)....unless rotating category from Chase is gas, restaurants
Capital One Quicksilver-1.5% on everything (this is our default card for everything else)


My husband teases me about this system, but we probably earn $75-100/month on average.  Not too bad on things we were buying anyway. 

milesdividendmd

  • Handlebar Stache
  • *****
  • Posts: 1913
  • Location: Portlandia
    • Miles Dividend MD
Re: Another CC thread - Chase Sapphire Preferred?
« Reply #8 on: July 21, 2014, 09:32:11 AM »
Thanks for the replies so far, everyone.  Ideally, I'd be able to use my reward points for travel (about 1-2 trips/year) & have minimal out-of-pocket expenses (i.e. for taxes/airport fees etc.) I've been able to maximize my points in the past by getting free flights and they really help cut down the cost of any trip cause the rest of my spending during the trip can be somewhat controlled (I usually stay with friends, can eat cheaply, etc.)

What would be the benefit of opening both a Chase Freedom & Chase SP if I just transferred my points to the SP? Do I HAVE to have a Chase checking to do that?

I'd estimate that after the 'spending spree' of the next few months, I'd average putting about $500/month on the card.

The reason to own the freedom card as well as the Sapphire preferred card is that the ultimate rewards points earned on the freedom card cannot be transferred to travel partners (like airlines and hotels) unless they're first transferred to a premium account like a Chase ink or Chase Sapphire preferred card.

greaper007

  • Handlebar Stache
  • *****
  • Posts: 1129
Re: Another CC thread - Chase Sapphire Preferred?
« Reply #9 on: July 21, 2014, 09:38:38 AM »
I have it and it's great for one thing in particular, frequent flier miles.    My wife does a lot of international travel and we'd love to join her as the hotel room is already paid for by our business.   But, we can't really justify $3,000+ in plane tickets, so we're using it for the miles.     I figure the 4 of us can all make it to Dublin for free next May by using the CC for all our purchases.

thepokercab

  • Bristles
  • ***
  • Posts: 486
Re: Another CC thread - Chase Sapphire Preferred?
« Reply #10 on: July 21, 2014, 10:00:53 AM »
I got it for the nice sign up bonus, but am going to probably turn it off before the annual fee comes due. 

For me, I use the AMEX blue preferred for my groceries, which returns a nice 6% (but has a $75 annual fee) and then I use the barclays card to get 2.2% points on all other purchases that I can then redeem for travel redemptions (2500 points = $25.00 redemption).  I rack up the points so much quicker on the Barclays' card then I can on the Preferred.   

Between those two, i don't see the use in paying an annual fee to have the Sapphire Preferred. 

PilotsWife

  • 5 O'Clock Shadow
  • *
  • Posts: 39
Re: Another CC thread - Chase Sapphire Preferred?
« Reply #11 on: July 22, 2014, 01:15:56 AM »

Chase doesn't have the fee-free Sapphire anymore, so it would have to be downgraded to a Freedom or Slate or some other card.

They do!  So you can get the preferred and then downgrade before the fee.

https://m.creditcards.chase.com/chase-sapphire.aspx

Thanks for pointing that out! I've seen this card mentioned but it doesn't come up on Chase's website when I search for no-fee cards. I'd read that it was discontinued but lo & behold it exists! Hooray!

milesdividendmd

  • Handlebar Stache
  • *****
  • Posts: 1913
  • Location: Portlandia
    • Miles Dividend MD
Re: Another CC thread - Chase Sapphire Preferred?
« Reply #12 on: July 22, 2014, 01:18:50 AM »
No worries. ( I recently downgraded. )



thedayisbrave

  • Pencil Stache
  • ****
  • Posts: 700
  • Location: Raleigh, NC
  • CFO @ My Life
Re: Another CC thread - Chase Sapphire Preferred?
« Reply #13 on: July 22, 2014, 11:44:13 AM »
Thanks guys.  I just applied for a Chase Sapphire Preferred.  I figure after a few months I'll apply for the Chase Freedom & then use those two as others have suggested.  Being able to rack up enough rewards points is really important to me to use for travel so it's worth the added effort of transferring points if needed.  Thanks!

dfree86

  • 5 O'Clock Shadow
  • *
  • Posts: 51
Re: Another CC thread - Chase Sapphire Preferred?
« Reply #14 on: August 12, 2014, 06:20:35 PM »
Just started with my Chase Sapphire Preferred and you now have to spend $3k in the first month to get the 45,000 points. Should be doable without getting extravagant.

Do you guys know if it adversely affects credit score if you downgrade? I was thinking of doing it in a year to avoid the fee, but I don't wanna take a huge hit. Thanks!

CrazyinVA

  • 5 O'Clock Shadow
  • *
  • Posts: 11
Re: Another CC thread - Chase Sapphire Preferred?
« Reply #15 on: October 05, 2014, 06:58:53 PM »
Supposedly the 7% bonus is going away for new members and being phased out entirely in 2016.

http://thepointsguy.com/2014/07/chase-sapphire-preferred-ups-auto-coverage-nixes-dividend/

sheepstache

  • Handlebar Stache
  • *****
  • Posts: 2424
Re: Another CC thread - Chase Sapphire Preferred?
« Reply #16 on: October 05, 2014, 07:09:54 PM »
Just started with my Chase Sapphire Preferred and you now have to spend $3k in the first month to get the 45,000 points. Should be doable without getting extravagant.

Do you guys know if it adversely affects credit score if you downgrade? I was thinking of doing it in a year to avoid the fee, but I don't wanna take a huge hit. Thanks!

I got it months ago, but at that time you had to add an additional user to get full benefit. Not a big deal at all, just something to remember to do. They don't ask for a SS# or anything so you could get one for your mom and not tell her or use a business name or something.

If I may ask a question on my own account, does anyone know what happens if you request a downgrade but you already have the Chase Freedom card?

kendallf

  • Handlebar Stache
  • *****
  • Posts: 1049
  • Age: 52
  • Location: Jacksonville, FL
Re: Another CC thread - Chase Sapphire Preferred?
« Reply #17 on: October 05, 2014, 07:29:42 PM »
I downgraded my Chase Sapphire Preferred to the no-fee Sapphire; no adverse effects since they keep the credit line the same, nothing changes.  I have four Chase cards currently; they'll move your credit limit around between cards if you ask.

I've closed one of the Chase cards already this past year (IHG, spent the bonus hotel points and killed it).  My recent credit score (from Mint's free trial) was better than last year, even with 5 or 6 new cards opened in this time period.

Terrestrial

  • Bristles
  • ***
  • Posts: 294
Re: Another CC thread - Chase Sapphire Preferred?
« Reply #18 on: October 05, 2014, 07:31:01 PM »
I have the Sapphire Preferred.  It's pretty legit for racking up travel, especially if you can charge a bunch of work expenses then get reimbursed for them for zero net out of pocket, especially if what you are charging is travel and dining expenses (better multipliers).

Between the ultimate reward mall (you go to websites through the Chase portal) that yields pretty solid multipliers from various stores and being able to transfer the points to various airlines which you can also get points for from booking tickets (southwest rapid rewards for example), I haven't actually paid for a plane ticket in a few years now for me or my wife and we travel a fair amount.

It may not be the optimal card to use but with being diligent about always buying stuff through the portal (if I'm going to say home depot I will buy it all online then go down to the store 5 mins from my house and pick it up in store for free...and get the points multipliers) and the higher equivalent value that southwest points gives versus cash back, i've crushed the $95 fee with airplane ticket value every year i've had it by a handy margin.  It probably does depend on how much you spend though with how worthwhile it is.

thedayisbrave

  • Pencil Stache
  • ****
  • Posts: 700
  • Location: Raleigh, NC
  • CFO @ My Life
Re: Another CC thread - Chase Sapphire Preferred?
« Reply #19 on: October 05, 2014, 07:51:14 PM »
Just started with my Chase Sapphire Preferred and you now have to spend $3k in the first month to get the 45,000 points.

It's $3K within 3 months of account opening if I'm not mistaken?? Now I'm worried...

DangleStash

  • Stubble
  • **
  • Posts: 100
Re: Another CC thread - Chase Sapphire Preferred?
« Reply #20 on: October 06, 2014, 07:05:04 AM »
Yep, it is first 3 months.

milesdividendmd

  • Handlebar Stache
  • *****
  • Posts: 1913
  • Location: Portlandia
    • Miles Dividend MD
Re: Another CC thread - Chase Sapphire Preferred?
« Reply #21 on: October 06, 2014, 10:46:30 AM »
Just started with my Chase Sapphire Preferred and you now have to spend $3k in the first month to get the 45,000 points.

It's $3K within 3 months of account opening if I'm not mistaken?? Now I'm worried...

This should not worry you.  No matter how mustachian you are.

You can pay your rent/mortgage by credit card purchased gift cards on evolve money.com.  You can open up a softcard/serve account and put 1500 a month on it automatically with on line credit card loads, then use the serve card to pay back the credit card company.

There are a million cheap, legal, and easy ways to manufacture spending.  It just takes a little research and effort and willingness to think outside the box.

Good luck.  And feel free to ask any questions.  I'd be happy to help you sort it out.

chemgeek

  • 5 O'Clock Shadow
  • *
  • Posts: 83
Re: Another CC thread - Chase Sapphire Preferred?
« Reply #22 on: October 07, 2014, 07:34:10 AM »
@Terrestrial: Do you get the points still if you do in-store pick up? The last time I did that for something at Bed Bath and Beyond, my credit card didn't get charged until I picked the item up in the store. Would I still earn points this way? I have a few bedding items I'm looking to buy and the extra 3% back through the Ultimate Rewards mall would be pretty nice.