[10/28 Update] Chase recently changed its annual-fee refund policy: if you close the card more than 30 days after the annual fee posts, you will no longer get the annual fee refunded. It is currently unclear whether downgrades follow the same rule as well (previously, both downgrades and closures received prorated annual-fee refunds). If you need to downgrade, it is best to do so within 30 days so you can get the full annual fee refunded.
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Overview of the No-Annual-Fee Chase United MileagePlus Credit Card:
Who This Card Is For:
- Long-term holding: Good for those who do not want to pay the annual fee on the Chase United MileagePlus Explorer Credit Card but also do not want to close the card; if you spend heavily through MPX, it may also be worth keeping long term for the extra 25% bonus
How to Get It
- You cannot apply directly; it is only available by downgrading from the Chase United MileagePlus Explorer Credit Card or the United Club Card
- You need to call the phone number on the back of your card to request the downgrade; just specify that you want the no-annual-fee version
- After downgrading, the card number stays the same, but the expiration date and 3-digit CVV will change. The new card should arrive in 5-7 days
- If you downgrade within 30 days after the annual fee is charged, the full annual fee on the original card will be refunded: $95/$395. After 30 days, you will most likely not get an annual-fee refund
- Right after downgrading, you can see in your Chase account that the earning rate changes to 0.5 mile/$ on purchases, though your UA account may not update immediately
Basic Features
- No annual fee
- Earn UA miles on spending: 0.5 mile/$
Highlights
- MPX helper: when using the Mileageplus X APP for purchases, you still get an extra 25% mileage bonus
- Mileage extension: making any purchase will earn some UA miles, which can extend your mileage expiration by 24 months
Drawbacks
- You lose the hidden benefits of the Chase UA card, and at 0.5 mile/$ it basically becomes a sock-drawer card
- Regardless of your credit limit, it can only be a Visa Platinum card, so you lose the benefits the original UA card had as a Visa Signature card
- You no longer get airline perks like priority boarding or free checked bags; it is simply a no-annual-fee card that earns miles
My Thoughts:
There are mainly two reasons to downgrade:
Churn UA: I recently downgraded my Chase United MileagePlus Explorer Credit Card with the $95 annual fee to this no-annual-fee version, mainly to prepare for applying again for the original annual-fee card and earning the signup bonus again (Chase does not allow you to apply again for the same card while you already have it). After downgrading and reapplying, I have already received the signup bonus on the new UA card. If you are considering downgrading to this card in order to churn the UA card, I recommend reading this first:
Keep credit history and MPX: Even though this card is fairly mediocre on its own, keeping it open instead of closing it can still help your credit score a bit. It lets you preserve the payment history on this card, which counts toward your average credit history. MPX still gives a 25% bonus, and using this card to extend expiring UA miles can also be a nice extra benefit.
Of course, if you are considering a downgrade, you can refer to the article below to help decide whether you should do it.
If you do not want to downgrade and just want to close the annual-fee UA card, I suggest first asking whether there is a Retention Offer: