Is the Chase Sapphire Reserve Worth It?

The Chase Sapphire Reserve® comes with a $550 annual charge, which is increased than what many different rewards bank cards cost. Nevertheless, if you happen to’re usually on the go and inquisitive about advantages geared towards journey, the Sapphire Reserve will be nicely price the price.

Learn on to study concerning the Sapphire Reserve’s advantages and see how a lot worth you may get from this journey bank card.

Chase Sapphire Reserve card particulars and advantages

Charging purchases to the Sapphire Reserve is rewarded with factors, that are sometimes every price 1 cent when redeemed for money or 50 % extra when redeemed for journey by means of the Chase Final Rewards portal.

As a cardholder, you earn:

Rating $750 in journey

The Sapphire Reserve presents an attractive welcome provide of 60,000 Chase Final Rewards factors once you spend $4,000 inside the first 3 months of opening your account. If you happen to use these bonus factors to guide a flight, resort room, cruise, rental automotive or different journey expertise by means of Chase Final Rewards, your factors can be price $900.

You even have the choice to switch factors at a 1:1 ratio to any of the 14 resort and airline loyalty applications Chase companions with — together with Southwest Speedy Rewards, United MileagePlus, Marriott Bonvoy and World of Hyatt. If a kind of applications is providing a deal on a seat or room you need, transferring your factors and reserving instantly by means of that firm would possibly make your rewards go even additional.

$300 journey credit score

Annually, purchases within the journey class are rewarded with assertion credit as much as a complete of $300 yearly. That is extra beneficiant than the journey credit supplied by another journey playing cards, such because the as much as $200 in incidental airline charge credit supplied by The Platinum Card® from American Specific (which might solely be utilized to purchases with one airline per yr) or the as much as $100 in airline incidental assertion credit supplied by the Financial institution of America® Premium Rewards® bank card.

Whereas these playing cards apply their journey credit to just a few particular bills like baggage charges and seat upgrades, the Sapphire Reserve mechanically awards its credit score on any buy coded as journey — whether or not that’s airfare, lodging or a rental automotive. Thus, you possibly can snag this credit score with out having to present it a lot thought.

Airport lounge entry

The Sapphire Reserve presents Precedence Cross Choose membership, which will get you entry to over 1,500 airport lounges and experiences across the globe. A main cardholder and any approved customers can every deliver as much as 2 friends with them. It’s also possible to get further friends admitted for $27 per visitor, per go to to a lounge.

You would achieve entry to Precedence Cross lounges and not using a taking part bank card by becoming a member of instantly on the Status membership degree, which grants limitless free visits for members with an annual charge of $469. Contemplating the price of a standalone membership, getting admittance together with your bank card is a reasonably candy profit.

World Entry or TSA PreCheck Payment Credit score

The Chase Sapphire Reserve presents a press release credit score of as much as $100 for both a TSA PreCheck software charge or a World Entry software charge. You may declare this profit as soon as each 4 years, supplying you with loads of time to resume your membership earlier than the 5-year expiration date for both program.

World Entry membership will get you thru customs screening sooner when returning to the U.S. from a visit overseas, whereas TSA PreCheck permits you to undergo a shorter safety screening line when beginning your journey from a U.S. airport. World Entry members mechanically get TSA PreCheck advantages, so if you happen to journey internationally, you’ll doubtless wish to use your credit score to use for World Entry.

Major rental automotive insurance coverage and journey insurance coverage

The Sapphire Reserve offers a number of insurance coverage advantages, together with baggage delay insurance coverage and journey cancellation insurance coverage. It presents main rental automotive insurance coverage that protects you in opposition to as much as $75,000 in damages from theft or collision.

Complimentary DashPass

The Sapphire Reserve will get you a free DashPass subscription for at least 1 yr once you activate it by December 31, 2024. This contains limitless free deliveries on DoorDash orders that meet the minimal buy requirement.

The DashPass subscription alone prices $9.99 a month with out this promotion, so this could be a worthwhile profit if you happen to commonly order takeout.

One yr of complimentary Lyft Pink membership

One other Sapphire Reserve profit is a complimentary Lyft Pink All Entry membership that’s good for two years if you happen to activate by December 31, 2024. That will get you as much as 10 % off rides, free precedence pickup upgrades and a free Grubhub+ membership for 1 yr. A Lyft Pink membership prices $199 a yr if you happen to pay for it out-of-pocket.

On high of that financial savings, charging Lyft rides to your card by means of March 31, 2025, earns 10X factors. Thus, shopping for a $25 Lyft experience would internet you 250 Chase Final Rewards factors.

10X Factors on qualifying Peloton purchases

This isn’t probably the most profitable Chase Sapphire Reserve profit, however cardholders can even earn 10X factors on as much as $5,000 in Peloton gear and accent purchases of $150 or extra. The promotion expires March 31, 2025.

How does the Chase Sapphire Reserve examine to different premium journey playing cards?

The Sapphire Reserve offers a ton of priceless advantages for cardholders, but it surely isn’t the one journey card available on the market. If you happen to’re questioning whether or not you must get the Chase Sapphire Reserve, it is smart to check it to different premium journey playing cards earlier than making your resolution.

The Platinum Card from American Specific is a stable different to the Chase Sapphire Reserve. This card comes with a welcome provide of 80,000 factors after you spend $8,000 throughout the first 6 months you have got the cardboard. The Platinum Card additionally earns 5X factors on flights booked instantly with airways, and it comes with numerous totally different advantages — together with elite standing by means of Marriott Bonvoy and Hilton Honors, complimentary airport lounge entry, as much as $1,700 in varied annual credit and extra.

The $695 annual charge is increased than the Sapphire Reserve’s, though it’s simply offset by lots of the card’s perks and credit. Bear in mind, nevertheless, lots of the Platinum Card’s annual credit are restricted to particular retailers and will be tough for some cardholders to make use of.

However, the Capital One Enterprise X Rewards Credit score Card comes with a $395 annual charge and a bevy of advantages — together with a $300 annual journey assertion credit score, as much as $100 in assertion credit towards TSA PreCheck or World Entry and extra. The Capital One Enterprise X additionally earns 10X miles on resort and rental vehicles booked by means of Capital One Journey, 5X miles on flights booked by means of their journey portal and 2X miles on all different purchases.

To high it off, you possibly can earn 75,000 bonus miles (price $750 in journey) once you spend $4,000 in purchases throughout the first 3 months. The annual charge of $395 is lower than each the Sapphire Reserve and the Amex Platinum, which makes it a card you must undoubtedly think about.

Is the Chase Sapphire Reserve price its annual charge?

If you happen to’re incessantly on the transfer and intend to take full benefit of the Sapphire Reserve’s journey advantages, this card can simply pay for itself. The $300 journey credit score, Precedence Cross Choose membership (price $469) and as much as $100 in assertion credit towards a World Entry or TSA PreCheck software collectively greater than cowl the $550 charge. And when you think about the Lyft Pink, DoorDash and Peloton advantages, plus the substantial welcome provide, the Sapphire Reserve offers a number of worth.

The right way to offset the Chase Sapphire Reserve’s annual charge

If you happen to’re on the fence about whether or not the Chase Sapphire Reserve is price it, you might wish to do the maths to see whether or not your typical yearly spending will generate enough rewards to offset the annual charge.

Throughout the first yr, offsetting the Chase Sapphire Reserve annual charge is simple. Merely use your card to make $4,000 in purchases inside the first 3 months, and also you’ll earn a welcome bonus of 60,000 factors. These factors are price as much as $900 in journey once you guide by means of Chase Final Rewards. Any factors you earn on high of the welcome bonus are gravy, which simply makes the Chase Sapphire Reserve price it throughout the first yr.

Shifting ahead, let’s say you spend $3,500 on journey together with your card. You earn the $300 assertion credit score, and the remaining $3,200 earns 3X factors for a complete of 9,600 factors. Subsequent, suppose you spend $900 to guide a resort keep by means of the Final Rewards portal, gaining 10X factors and including 9,000 factors to your complete earnings. You additionally spend $1,800 at eating places, netting you 5,400 factors, and also you make $1,000 in non-category purchases for an extra 1,000 factors. General, you accumulate 25,000 factors.

Redeeming these factors for money on the fee of 1 cent per level will get you $250 (which along with the $300 journey credit score covers the $550 charge). Even higher, redeeming these factors for journey by means of Chase Final Rewards makes them price as a lot as $375. The perfect redemption of all, nevertheless, could also be by transferring your factors to considered one of Chase’s journey companions. In keeping with Bankrate’s factors and miles valuations, transfers are sometimes price 2 cents per level — which makes your factors price as a lot as $500.

On this state of affairs, you offset the annual charge by spending $7,200 all year long, or a mean of $600 per thirty days. You would cowl the charge even sooner if you happen to dedicate a bigger portion of your spending to journey or eating places. You would additionally guide extra journey, resort stays or eating by means of the Final Rewards portal to earn factors rapidly.

When the Chase Sapphire Reserve isn’t price it

The Chase Sapphire Reserve’s annual charge most likely received’t be price it if you happen to don’t spend at the least $300 a yr on journey. You received’t get the annual journey credit score, and it could be difficult to earn sufficient factors in non-travel classes to offset the $550 charge.

Moreover, the Sapphire Reserve doubtless isn’t the appropriate card for you if you wish to switch a steadiness or don’t pay your bank card invoice in full every month. The Sapphire Reserve doesn’t provide an introductory 0 % APR on steadiness transfers. And if you happen to have a tendency to hold a steadiness, the curiosity you’d owe will most likely add up sooner than any rewards you would possibly earn.

If the Sapphire Reserve’s journey advantages enchantment to you however you’re reluctant to spend $550 upfront, you would possibly wish to apply for a unique journey rewards card with a decrease charge. For instance, the Chase Sapphire Most well-liked® Card presents 5X factors on journey bought by means of the Final Rewards portal, 2X factors on journey bought elsewhere and 3X factors on eating, choose streaming providers and on-line grocery purchases (excluding Walmart, Goal and wholesale golf equipment). With an annual charge of $95, it’s a extra reasonably priced choice.

The underside line

Figuring out whether or not you must get the Chase Sapphire Reserve comes all the way down to finishing a reasonably easy cost-benefit evaluation. The cardboard comes with a comparatively excessive annual charge, however its intensive journey advantages can greater than make up for the price if you happen to’re an avid traveler. If you happen to don’t journey incessantly sufficient to justify paying $550 for the Sapphire Reserve’s perks, you would possibly choose a journey card with a decrease charge or a rewards bank card with a unique focus — equivalent to a money again card.