The Chase Sapphire Preferred® Card and the Chase Sapphire Reserve® both have new welcome offers as of Friday. Before today, the Sapphire Preferred was offering a record 100,000 point sign-up bonus.
The last year and a half has had credit card issuers attempt to keep up with shifting consumer demand and spending patterns. In recent months, Chase added new rewards categories for both the Sapphire Preferred and Reserve to meet cardholders where they are spending, including streaming services and online grocery purchases.
As consumer spending levels return to normal, and actually exceeding levels prior to the pandemic, it makes sense that card issuers are starting to pull back their large welcome offers. However, that doesn’t mean that either of these cards are no longer worth applying for.
Both the Chase Sapphire credit card products still deliver excellent value, and the valuable points you earn can help you fund your next vacation
Chase Sapphire Preferred and Reserve welcome offers
Starting today, the welcome offers for both the Chase Sapphire Preferred and Sapphire Reserve are the following:
- Chase Sapphire Preferred: Earn 60,000 bonus points after you spend $4,000 on purchases in the first three months from account opening.
- Chase Sapphire Reserve: Earn 50,000 bonus points after you spend $4,000 on purchases in the first three months from account opening.
The Preferred and Reserve bonuses are both worth $750 if you redeem your points through the Chase Travel portal. That’s because Preferred cardholder’s points are worth 25% more and Reserve cardholder’s points are worth 50% more when used this way.
However, your points can be worth even more if you transfer and redeem them with one of Chase’s travel partners. Nonetheless, each bonus provides nearly a 19% rate of return on your initial $4,000 spending threshold if you redeem your points through the travel portal.
The annual fees of both cards will remain the same: $95 for the Preferred and $550 for the Reserve. So with these factors taken into account, what card is right for you?
I recently chose the Chase Sapphire Preferred as it was a better fit for my budget and needs, but there are plenty of reasons to choose one over the other.
Here are the detailed benefits of each card.
Chase Sapphire Preferred benefits
The Chase Sapphire Preferred is a popular travel credit card known for its broad spending categories, modest annual fee and solid benefits. With this card, you will receive:
Spending categories:
- 5X points on travel purchased through Chase Ultimate Rewards®, excluding hotel purchases that qualify for the $50 anniversary hotel credit.
- 3X points on dining, including eligible delivery services, takeout and dining out,
- 3X points on online grocery purchases (excluding Target®, Walmart® and wholesale clubs)
- 3X points on select streaming services.
- 2X points on other travel purchases.
- 1X point on all other purchases.
Cardholder benefits:
- 25% more redemption value when you redeem your Ultimate Rewards through the Chase travel portal.
- Ability to transfer Ultimate Rewards to 11 airline partners and three hotel partners, all at a 1:1 ratio.
- Earn up to $50 in statement credits each account anniversary year for hotel stays purchased through Chase Ultimate Rewards®.
- DoorDash: Unlimited deliveries with a $0 delivery fee and reduced service fees on orders over $12 for a minimum of one year on qualifying food purchases with DashPass, DoorDash’s subscription service.
- Peloton: Up to $60 back on an eligible Peloton Digital or All-Access Membership through 12/31/2021. No fitness equipment is require for enrollment.
- Lyft: Earn 5X points per dollar spent on Lyft rides through March 2022.
- Travel insurance
- No foreign transaction fees
Chase Sapphire Reserve benefits
The Chase Sapphire Reserve is a step up from the Preferred in benefits and annual fee. However, the $550 annual fee can quickly be made back if you maximize the card’s features.
Spending categories:
- 10x total points on hotels and car rentals when you purchase travel through Chase Ultimate Rewards® after the first $300 is spent on travel purchases annually, and on Chase dining purchases with Ultimate Rewards®.
- 5x total points on flights when you purchase travel through Chase Ultimate Rewards® after the first $300 is spent on travel purchases annually.
- 3X points on other travel worldwide after the first $300 is spent on travel purchases annually
- 3X points on dining at restaurants, including eligible delivery services, takeout and dining out.
- 1X on all other purchases.
Cardholder benefits:
- $300 annual travel credit – Automatically receive up to $300 in statement credits as reimbursement for travel purchases charged to your card each account anniversary year. Through December 31, 2021, gas station and grocery store purchases will also count toward earning your Travel Credit.
- TSA PreCheck/Global Entry fee credit
- Priority Pass Select airport lounge membership
- 50% more redemption value when you redeem your Ultimate Rewards through the Chase travel portal.
- Ability to transfer Ultimate Rewards to 11 airline partners and three hotel partners, all at a 1:1 ratio.
- The Luxury Hotel & Resort Collection benefits, including early check-in and late check-out
- DoorDash: Get unlimited deliveries with a $0 delivery fee and reduced service fees on orders over $12 for a minimum of one year on qualifying food purchases with DashPass, DoorDash’s subscription service. And you will be given $60 in statement credits through Dec. 31. (Activation required by 03/31/2022)
- Peloton: Get up to $120 back on an eligible Peloton Digital or All-Access Membership through 12/31/2021. No fitness equipment is required.
- Lyft: Earn 10X points on Lyft rides through March 2022. And, you will be given one year complimentary membership to Lyft Pink. This membership gives you 15% off all rides, plus priority pickup at airports and a relaxed cancellation policy.
- Travel insurance coverage
- No foreign transaction fees
What to consider if you’re deciding between the two
If you are stuck on whether you should choose the Sapphire Preferred or Sapphire Reserve, unfortunately, you must choose just one. The terms and conditions state that one person cannot have both Sapphire products at the same time.
However, here’s what you should consider when deciding:
- Annual fee: Between both cards, there is a stark difference in annual fees. The $95 is modest for the Sapphire Preferred, but the Reserve $550 annual fee is a tough pill to swallow (although the $300 travel credit can quickly bring the effective cost down). Be sure to know which card fits your budget the best.
- Travel frequency: Many travel credit cards with excellent benefits revolve around one key factor — regular travel. I would define this as at least once per quarter, or more than 5 times per year. The more you travel, the more you can justify the higher annual fee.
- The ‘hassle’ factor: Using these benefits to justify the annual fee is one more thing on your mind. The worst feeling is when the annual fee comes around, and you realize you haven’t used the card to its fullest potential. For me, I like to keep track of all the benefits of each card I have in an Excel spreadsheet, and check them off as I use them.
Bottom line
The Chase Sapphire Preferred® Card and Sapphire Reserve are both excellent travel credit cards. Between their benefits and earning potential, they are worth considering for your wallet.
While you may have missed out on the 100,000-point welcome offer for the Chase Sapphire Preferred, there is still excellent value to be extracted from either of the cards. But before applying, be sure to check your credit score and ensure yo
