Update: Some readers had been asking what would happen with Fairmont status from this card. I asked Chase and received the following response:
- Cardmembers will continue to earn Premier Status through February 28, 2018 (unless they close their Fairmont account).
Chase has sent out a letter to Fairmont cardholders letting them know that on August 15th their card will be converted to a Chase Sapphire Preferred card on August 15th. Things to note:
- Card will be keeping the same account number and account pricing
- New card will come with a new expiration date and security code
- New card will arrive within six to eight weeks from August 15th
- You have until August 15th to redeem points through the current Fairmont program, after then they will be transferred to the Sapphire Preferred card (making them Chase Ultimate Rewards)
- Free night benefit is discussed in some detail (see image below)
- If you have spent $12,000 before August 14th they will deposit a free night into your account (either within six weeks of your account anniversary date or 8 to 10 weeks after August 15th – whatever comes first).
- If you don’t have the full 12 months to reach the $12,000 spending requirement they will give you the free night if you have spent more than $6,000 by August 14. Keep in mind if you recently applied then you have probably meet the minimum spend requirement of $3,000, so spend another $3,000 and get a free night.
What You Should Do
- Decide what to do with your points. Personally I think Chase Ultimate Rewards are more valuable than Fairmont points, so I would let my points automatically convert.
- Decide what to do with your card. This is going to vary from person to person. Some things to keep in mind:
- Chase Sapphite Preferred has $95 annual fee and earns 2x on travel/restaurants
- The 5/24 rule applies to the Chase Sapphire Preferred card (but obviously not to this product conversion)
- If it’s been more than 24 months since you’ve received a sign up bonus for a card then you’re eligible for the sign up bonus again
- Chase Sapphire Preferred gives you the ability to transfer points to Chase’s travel partners.
- You can product change this card to the following options:
- Chase Freedom (5x rotating categories & no annual fee)
- Chase Freedom Unlimited (1.5x points on all purchases & no annual fee)
- Chase Sapphire Reserve ($450 annual fee, $300 travel credit based on card member year now & 3x points on travel/restaurants)
I think the best option for most people would be to get another Chase Freedom card (if you already hold one or more you can product change to this card but not apply for it again directly) as this gives you more spending capacity ($1,500 per quarter per card) on the 5x categories. If you don’t have a Chase Freedom and you’re under 5/24 it might make sense to apply for that card first and then product change this card so you can hold two Chase Freedom’s. Although there might be other higher value card you want to apply for that also fall under 5/24 status.
Basically for most people the best option is as follows:
- Let Fairmont points convert to Chase Ultimate Rewards
- Product change Chase Sapphire Preferred to Chase Freedom
Unfortunately the Fairmont card earns at the following rates:
- 5x on all Fairmont stays
- 2x on all airline tickets purchased directly from the airlines, at car rental agencies, and on transit and commuting
- 1x on all other purchases
So not that useful for building up points before the conversion.
Hat tip to reader Mark A for the image and also Rapid Travel Chai
