Chase Rode Its Big Bank Reputation to Credit Card Royalty — But Changes to Benefits and Devaluations Are Threatening Its Throne

JPMorgan has been able to do a lot by leveraging its position as America’s largest bank, including offering savings accounts that pay next to no interest. But at least they have their credit cards, right?

Not necessarily. In light of some recent and unsavory changes in Chase’s credit ecosystem, it’s worth wondering how long the company can ride the coattails of its brand visibility to win over new cardmembers on its Chase Freedom or Sapphire cards.

Chase’s flop era? Chase might’ve won the premium credit card makeover battle last year, but its ecosystem is far from dominant. Sure, there are more reasons to have a United co-branded credit card nowadays, but the reasons to carry Chase’s own branded cards? That’s debatable. In an increasingly crowded credit ecosystem, the company is dismissing standout features that make their cards worth having — three massive changes to its branded products are largely to blame.

• Dynamic pricing ruins a good thing: For a period of time, Chase offered Points Boost, which guaranteed better point redemptions on travel, especially premium hotel bookings — that ship sailed late last year.
• Hyatt isn’t what it used to be: Chase was the envy of many premium travelers for the ability to transfer to Hyatt, but changes to its award chart have soured many travelers.
• No more 10% boost: This week, Chase announced that it would no longer offer the 10% spending bonus on its Sapphire Preferred Card — axing a key benefit of the card.

Swiping in Greener Pastures

We spend a lot of time talking about credit cards, and really, the ills of the modern credit card ecosystem — whether it’s unnecessary annual fees, coupon books filled with brands you don’t care about, or things just getting worse. To that end, we wonder what Chase is good for now.

• Hyatt and United might be acceptable transfer partners for some, but they’re no longer exclusive to Chase, so Chase’s only gloatworthy feature is its sign-up bonuses.
• 3x or 3% back on dining might be attractive on various Chase products, but base earnings rates are less attractive (1x points/1.5% cash back), so better alternatives exist.

So what then? If you have a Chase Freedom Flex or Unlimited, check out Citi’s Double Cash and Custom Cash cards. If you have a Chase Sapphire Preferred or Reserve, maybe you’d be better off focusing on a simple 2% back or 2x points card. Those chasing card royalty might also consider the everyman’s premium card, the Capital One Venture X, which feels like a rejection of the games being played in premium credit land.