How To Upgrade Or Downgrade A Chase Credit Card

Over time, your credit card spending goals will likely change, and you might want to apply for a new credit card to get new benefits or rewards. But before you apply for a new card, you should consider upgrading or downgrading your existing account (also known as a product change) with your current issuer. With an upgrade or downgrade, there’s no hard credit inquiry, you’ll keep your same account information and you’ll get to maintain your credit history — the only change is the type of card you’ll have.

H2: Chase credit card: Upgrading and downgrading basics

If you want to upgrade or downgrade your Chase credit card, Chase offers a variety of options, with more than 30 credit cards and co-branded credit cards advertised on its website. Just make sure that you meet Chase’s eligibility requirements for the new card. To confirm if you’re able to upgrade or downgrade your card to your desired choice, simply contact Chase to get started.

Generally, you’ll have to switch to a card in the same category or credit card family if you want to do a product change. For example, you can’t change from a personal card category to a business card category. This is also true for Chase’s co-branded credit cards, such as the Marriott Bonvoy Boundless® Credit Card*. So, you could switch this card with another Chase Marriott card, but not with a different co-branded card.

Should you upgrade your Chase credit card?

Whether you upgrade or downgrade a credit card depends on your financial goals as well as how useful you find your current card. However, Chase has a few particularly compelling credit card options that are popular choices for upgrades: the Chase Sapphire Preferred and the Chase Sapphire Reserve.

Upgrading to Chase Sapphire Preferred Card or Chase Sapphire Reserve

The Chase Sapphire Preferred Card and Chase Sapphire Reserve are two of Chase’s premium credit cards and they’re best known for their generous travel rewards. If your spending goals are focused on travel, upgrading or switching to one of these cards is a great idea.

You might also want to upgrade to one of these premium cards if you want to better take advantage of the Chase Ultimate Rewards program. Both the Preferred and Reserve can redeem earned points at boosted rates through the Chase Travel portal, and even transfer points to travel partners, potentially boosting your point value.

Benefits of upgrading

Here are a few of the reasons you might choose to upgrade.

• Better rewards. The Chase Sapphire Preferred offers: 5X points on travel purchased through Chase Ultimate Rewards, 5X points on Lyft rides (through Sept. 30, 2027), 3X points on dining, select streaming services and online grocery purchases (excluding Walmart, Target and wholesale clubs), 2X points on other travel purchases and 1X points on all other purchases. Alternatively, the Chase Sapphire Reserve offers: 10X points on hotel stays and car rentals through Chase Ultimate Rewards, 10X points on Chase Dining purchases through Ultimate Rewards, 10X points on Lyft purchases (through Sept. 30, 2027), 5X points on air travel through Ultimate Rewards, 3X points on general travel and restaurant purchases and 1X points on all other purchases.

• Travel perks. Both of these cards come with premium travel perks. With the Sapphire Preferred, you’ll get perks like trip cancellation and interruption insurance, baggage delay insurance, a trip delay reimbursement, 1:1 points transfers to Chase travel partners and no foreign transaction fees. The Sapphire Reserve comes with benefits like up to $300 in annual credits for qualifying travel purchases, more extensive travel insurance, Priority Pass Select membership (with access to more than 1,300 airport lounges), 1:1 points transfers and up to a $100 application fee credit for Global Entry, TSA PreCheck or NEXUS, among numerous other benefits.

• Rewards boost for travel redemptions. The Sapphire Preferred offers a 25 percent points boost for travel redemptions through Chase Ultimate Rewards, whereas the Sapphire Reserve offers a 50 percent points boost for travel redemptions through Ultimate Rewards.

Another reason to upgrade is if you are interested in a different Chase card, but you’ve already opened five or more new credit card accounts during the last 24 months. In that case, you’d fall under Chase’s “5/24 rule,” an unofficial rule that says Chase doesn’t approve card applicants who have opened five or more cards from any issuer in the past 24 months.

Drawbacks of upgrading

Not everyone should feel the need to upgrade their Chase card: here are a few reasons why you might pass on the opportunity.

• Annual fees. The Sapphire Preferred has an annual fee of $95, while the Sapphire Reserve comes with a much higher annual fee of $550. The Chase card you upgrade from likely won’t feature an annual fee.

• Travel focused. Although the Sapphire Preferred and Sapphire Reserve offer higher rewards rates in many common everyday categories, these rewards cards are still best for frequent travelers since their rewards and perks are more travel-focused. Also, redeeming your points for cash back or gift cards will not yield as much value as using them for travel (especially through Chase’s portal).

• No welcome bonus. As an existing cardholder, you’ll miss out on the great welcome bonuses offered to new cardholders. For example, the Sapphire Preferred currently offers new cardholders the chance to earn 100,000 bonus points after spending $5,000 in the first three months from account opening. The Sapphire Reserve offers 60,000 bonus points after spending $5,000 in the first three months.

How to upgrade your Chase card

Upgrading your current Chase card can be as easy as making a phone call to Chase. Upgrading is generally considered to be a product change, so it shouldn’t require a hard inquiry or a new application. However, you will need to meet the conditions for the card you’re upgrading to. For example, upgrading to the Sapphire Reserve requires an excellent credit score.

When you upgrade, you’ll likely keep your same account information and credit limit. If you want to request an increase to your credit limit, different steps are required. You also won’t be eligible for any sign-up bonuses, although you may be able to negotiate a targeted offer when you request your upgrade.

Should you downgrade your Chase card?

Just as there are good reasons for wanting to upgrade your Chase card, it might be a smart move to downgrade a higher tier card into a lower one.

Downgrading to Chase Freedom Flex or Chase Freedom Unlimited

You always want to make sure that the card you have is meeting your needs, and a downgrade may help with that. Two options you may want to consider if the Preferred or Reserve aren’t hitting that mark include the Chase Freedom Flex* or the Chase Freedom Unlimited.

Benefits of downgrading

Downgrading card can free up some of the burdens you might experience with the more premier Chase cards.

• No annual fee. The Chase Freedom Flex and Chase Freedom Unlimited are available for no annual fee. If you currently have a Chase card with an annual fee, you may want to consider downgrading your card if you’re not making up for the cost of the annual fee in rewards and perks.

• Everyday rewards earnings. The Chase Freedom Flex offers: 5 percent cash back on activated bonus category purchases each quarter (on up to $1,500 in purchases, then 1 percent), 5 percent cash back on Chase Ultimate Rewards travel purchases, 5 percent back on Lyft rides (through Sept. 30, 2027), 3 percent back on dining and drugstore purchases and 1 percent back on all other purchases. Alternatively, Chase Freedom Unlimited offers: 5 percent cash back on Lyft purchases (through Sept. 30, 2027), 5 percent back on travel purchased through Chase Ultimate Rewards, 3 percent back on dining and drugstore purchases and 1.5 percent back on all other purchases.

Drawbacks of downgrading

As you might expect, you’re giving up a few valuable niceties when you downgrade to a “less premium” card.

• Fewer rewards. In exchange for not paying an annual fee, you’ll get fewer rewards and more restrictions. For example, the Freedom Flex offers a generous 5 percent cash back on rotating categories each quarter, but that’s limited to $1,500 in spending each quarter. Plus, the quarterly categories require activation in advance, which can be more inconvenient for some cardholders.

• Foreign transaction fees. The Freedom Flex and Freedom Unlimited both charge a 3 percent foreign transaction fee. If you plan on traveling abroad, it would be better to use a card that doesn’t charge a foreign transaction fee.

• No welcome offers. Again, since you’re not submitting a new application, you won’t be eligible for the Freedom Flex’s and Freedom Unlimited’s welcome offers.

How to downgrade your Chase card

The process of downgrading your card begins the same way as upgrading. Simply call your issuer at the number on the back of your credit card to get started. Because downgrading doesn’t involve an increased annual fee, you shouldn’t have to deal with a waiting period. And if you complete your product change within 30 days of paying the annual fee on your old card, your fee will likely be refunded.

When downgrading your card, you won’t be eligible for welcome offers. However, you can try to negotiate a targeted offer with the issuer. Also, before you go through with a downgrade, make sure you know what will happen with any rewards you’ve earned.

How to make the most of your upgrade or downgrade

Whether you’re planning to upgrade or downgrade your Chase credit card, make sure you are changing to a card that better suits your spending habits and rewards goals. Here are a few other things to do to get the most out of your product change.

• Time your switch
  

  Timing is everything when you are switching from one card to another. If you are moving to a card with a lower annual fee or no annual fee, make sure you change within a certain time frame to avoid paying the fee for the old card.

• Ask about how your rewards will transfer
  

  You have likely accumulated rewards on your current card that you would like to keep. When you transition to a new card, make sure you have a clear understanding of how your rewards will be transferred. Your rewards will likely transfer to your new card, but their value might shift.

• Check eligibility for bonuses
  

  When you apply for a new credit card, there is often a welcome offer that comes along with it. However, when you do a product change, you are not automatically eligible for a bonus offer. Check with your card issuer to see if you can negotiate a targeted bonus offer. Sometimes, card issuers will be open to this option to keep you as a customer.

The bottom line

If your current Chase card no longer meets your needs, upgrading or downgrading your card could be a worthwhile option. Do some research to see which Chase credit card would be best for you and your spending habits, and make sure you meet all of Chase’s requirements. Then, simply call your issuer to request a product change or switch.

*The information about the Chase Freedom Flex® and Marriott Bonvoy Boundless® has been collected independently by Bankrate.com. The card details have not been reviewed or approved by the card issuer.