NBC has reported that Saturday's Palin episode gave "SNL" its highest ratings in 14 years.
But Chase told "Access Hollywood" he wasn't impressed by Palin's guest spot.
"Quite frankly, it's a big mistake to let her go on," Chase said. "What was brilliant about ('SNL' head) Lorne (Michaels) was that he had nothing written for Sarah and that apparently she cannot improvise herself out of a paper bag!"
Palin, who is a frequent target on the sketch comedy show, appeared as herself in the opening and in the "Weekend Update" segment of Saturday's episode.
"On 'Weekend Update,' that was her big chance," Chase said. "Nothing."
He added that he thinks presidential candidate Sen. John McCain's campaign team has been "dumb."
"This has only helped accentuate the problem of his judgment in choosing, in such a cynical way, a candidate like Sarah Palin for vice president. I think the last thing that they would want right about now is to have the rest of America knowing all that … to have her be seen on 'SNL,' certainly never there," he told "Access Hollywood." "If anything, you just want her to be seen just from a distance. I'm sure she's very bright. But so is the Butterworth woman."