Can I upgrade from Chase Freedom Unlimited?

The Chase Freedom credit card has no annual fee and offers a $200 cash bonus for every $500 spent during the first three months of account opening. This card entices customers that already have travel credit cards with Chase Ultimate Reward points. 

Do You Qualify for an Upgrade?

Before making the change, it is important to check whether you qualify for the upgrade with the following requirements:

• Current card status

The CARD act mandates that credit cardholders can not be charged a higher annual fee on their account within the first year of opening their account. Because of this, your Chase card can not be upgraded to a new one with a higher fee until a year has passed since you opened your account. 

• Account Standing

Ensuring that your credit report and history are in good shape, including a consistent track record of on-time payments and responsible card usage, you can improve your chances of receiving the upgrade. It should just take minutes to receive your decision, and this won’t hurt your credit score as hard inquiries do. 

Should You Upgrade?

Now that you’ve verified that you do qualify for an upgrade, consider whether making the change is the right decision for your situation:

Pro-Upgrade:

• Chase’s new card rule

If you’ve opened more than five cards from any bank over the past two years, Chase will not approve you for a new card (with the exception of small business cards). In this case, it might be worth upgrading to the Chase Sapphire to redeem its points with Chase travel partners such as Hyatt and Southwest.

• Minimal Credit Report Impact 

When a credit card is updated, it doesn’t appear on your credit report as a new card, keep your report clean. The same credit card number is preserved and the information attached to the initial card is transferred over.  

Anti-Upgrade:

• No Welcome Bonus

When you upgrade your Chase Freedom to the Sapphire, Chase does not offer the initial sign-up bonus. Regularly, the Preferred comes with  60,000 points for spending $4,000 on purchases within the first six months of opening an account. By upgrading, you can lose about $1500. 

• Annual Fee

The Chase Sapphire comes with an annual fee of $550 which could be costly if you are not saving more money than you are spending.  If you can not afford the annual fee it is not smart to upgrade even if you qualify for the card. Annual fee’s can make it hard to pay back credit card bills so it is important to know whether a $550 annual fee is within your budget. 

• Different Purposes

The Chase Freedom card is meant for earning Chase points on services like Amazon, gas stations, supermarkets, streaming services, and more while The Chase Sapphire Preferred and Chase Sapphire Reserve is meant for dining and travel. If your purchases don’t include the latter, it might not be worth upgrading. 

Benefits of Upgrading

• Better Rewards: The Chase Sapphire Preferred offers unlimited 2x points on travel and restaurant purchases. The Chase Sapphire Reserve offers an annual $300 travel credit, after which you earn 3x points on travel. You also earn 3x points on dining and 10x points on Lyft rides through March 2022. Both cards offer 1x point per dollar spent on all other purchases. If you need a card that can provide a better rewards rate switching might be the best option for you. 

• Access to Perks: As great travel cards, both of these cards come with premium travel perks. With the Sapphire Preferred, you get travel perks like trip cancellation/trip interruption insurance, baggage delay insurance, and trip delay reimbursement. The Sapphire Reserve gives you access to 1,300+ airport lounges worldwide after enrollment in Priority Pass Select, up to $100 application fee credit for TSA precheck, and one year complimentary Lyft Pink. If you see your self being able to make full use of these perks then an upgrade may be for you.

 Disadvantages of Upgrading

• Annual Fee: Premium rewards packages from credit cards usually come with a much higher annual fee. The Sapphire Preferred has an annual fee of $95, while the Sapphire Reserve comes with a much higer annual price tag of $550. 

• Travel Focused: These premium cards are primarily travel rewards cards. This means you can maximize your rewards earnings for travel purchases, but other everyday purchases will only yield 1x point per dollar spent. Using your points for rewards like cash back or gift cards will not yield as much value as using them for travel. 

• No Introductory APR: While these premium cards offer great rewards rates and perks, your purchases will not get the benefit of a 0% APR Period. The Chase Sapphire Preferred has a variable APR of 15.99%-22.99%, while the Chase Sapphire Reserve has a slightly higher variable APR of 16.99%-23.99%

 How do I Upgrade?

You can upgrade your Chase Freedom to Unlimited by calling customer service at 1-(800) 432-3117, entering your account information, and asking to speak to a customer service representative when prompted. You can also upgrade from the Chase Freedom to Unlimited online. Log in to your account, and send a secure message stating your request to upgrade. From the main menu, under “Connect with Chase,” click “Secure Messages,” and then “Compose Message.” You will usually get a response in a few hours. 

Conclusion:

Whether you should upgrade your Chase Freedom Unlimited credit card ultimately boils down to your specific situation. However, it might not be wise to rush into a decision due to a chance of earning bonuses and points. Make sure you would use all of the rewards and perks that come with the upgraded cards so you don’t unnecessarily pay the annual fee.  If your credit report is clean and you have a lot of points on your Chase Freedom, it could be a good idea to upgrade your card to a Chase Sapphire Preferred or Chase Sapphire Reserve.