Description: This article is a comparison between the chase-sapphire-reserve-benefits in which the author shows the benefits of these two cards. But the author recommend the chase sapphire reserve no matter it is for travel or something else.
Today we’re talking Travel Awards credit cards. Today’s credit cards are the Chase Sapphire Preferred and the Chase Sapphire Reserve. I’m going to do something a little different today. I want to talk about two cards, the value of both cards and why I think the Chase Sapphire Reserve is probably better for most people.
Let’s talk about the Chase Sapphire Preferred first. You have a ninety five dollar annual fee fro the first year. That’s good. You’ll have to pay anything in the first year. You get fifty thousand bonus points after spending $4,000 worth in the first three months.
There are six hundred twenty-five dollar travel value and if you’re using their portal, I recommend going transferring your points to the airlines or hotels directly. You’ll get better value out of the card.
What I what I want to talk about mainly is that for a long-term you can get that value every year. if you can get a ninety five dollar value or more every year, then it makes sense to keep the card. This is a travel rewards credit card. That means if you travel and you can spend more than ninety five dollars a year in travel, you’re probably going to need to get the benefits out of this card.
If I take one trip now and I need to use a hotel once and it’s over ninety five dollars, I am going to get that value. Because I can have 10,000 bonus or 10,000 points. Let’s get rid of the 50,000 bonus points because it’s three years down the road I’ve already used a 50,000 bonus points. Now I’m paying ninety five dollars every year to keep the card.
I need to find value in this card in order to keep it. The value is probably the main part of this card. It is going to come from the earn possibility. I’m going to get two points for every dollar spent on track, two points for every dollar spent on restaurants and one point for every dollar spent on everything else. If we average that, we’re looking at probably 1.5 points per dollar. It makes everything make a little bit more sense.
I spent $6,000 on this card a year. I used a card. I spent $6,000 a year. There’s the equivalent. That’s what I’ll get every year with this card. 9,000 points are not bad. 9,000 points is equivalent to about 90 dollars. That’s worst scenario. As for the best case scenario, if I transfer these points to transfer partners, at the right time I can probably get even more value. I can get more than that ninety five dollars. It’s not too hard to look at some of the other value.
If you rent cars you can get the primary insurance and you’ll save some value. That could be ten fifteen dollars every time you’re in a car. The value that you’ll get out of that is good. I can easily get over ninety five dollars as long as I spend about six thousand dollars on the card every year.
Next, let’s look at the taste Sapphire Reserve. This is very important because the first thing when you look at this card is $450 annual fee and in the past that was a deal breaker for me. I don’t want to pay $450. not only it is $450 but it’s not waived in the first year.
That $450 is going to come out of your pocket within the first couple of months of having this card. That’s intimidating. You get the bonus points, 50,000 bonus points after spending $4,000 within the first three months. So that’s good.
Where can I get value? I can offset this $450 annual fee. You get travel credit here $300. Because I do not need travel credit, I can get this $300 as well. That gives me a value. I don’t like to count the 50000 bonus points because that’s a bonus but it’s a one-time thing. you’re not going to get that anymore.
I can get the 300 dollar travel credit and I can get TSA PreCheck. That’s another $100 fee credit. and I’ll get that $100 fee credit every five years. That’s 20 dollars. We’re going to get three hundred dollars travel credit. If I’m booking the hotel or using a card to book an airfare, I use this Reserve card, they will catch it on your statement and they’ll give you credit for it. That’s how that works.
I have the three hundred dollars here plus. I have the TSA PreCheck. I need to get TSA PreCheck. I get the TSA PreCheck every five years. That’s equivalent to 220 dollars per year. It’s three hundred and twenty dollars we can get.
You also have the priority pass. I can use the lounges. I’m traveling with the exact number, maybe they don’t have a set number. With the priority pass through the Chase Sapphire reserve, you can bring three or four people in and you’re fine. I go into priority.
I use the priority pass lounge, get some water, get some snacks and things like that. It’s five dollars value each time I use it. I use it on the way up to my destination and on the way back I use it again. That’s ten dollars for that trip.
I do three trips a year. That is about thirty dollars. I’m averaging it depending on how I travel. That’s $30 value there. So we’ve gone from three hundred dollars to 320 when we use the TSA PreCheck and we get another $30. That’s 350 dollars right now.
Now looking at the impossibility. I’m going to do the same thing. I’m going to spend $6,000. The earn possibility has gone up a little bit. You get three times points for travel. You get three times points for restaurants and then you get one point per dollar for everything else.
Let’s average that. That’s probably about two points per dollar. We’re spending six thousand dollars. That’s 12,000 points or $120 value and we add that to our number 350. We’re going to add 120 to that. That’s four hundred and seventy dollars. That’s a value. That’s a conservative number.
That’s what you’ll get with this card. We get four hundred and seventy value with this card. You’ll get over the $95 value with the Chase Sapphire Preferred. Which one is better? I’d like to know what you think about it.
I personally think that a sapphire Reserve is definitely a better card to get even though that $450 is intimidating. You can get more value out of it and have a better travel experience. I’d love to know what you think of it. Post in the comments below if you have any questions. Thanks for reading.