by Daniel | Last Updated May 7th, 2024
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So as you might have already heard, Chase recently increased the signup bonus for both the Chase Sapphire Preferred card and Reserve card.
And this is great news if you are considering one of these cards, but which card is the better card to choose?
Well, let’s take a closer look at each card and find out.
Increased Sign-up Bonus
So, previously, both cards offered a signup bonus of 60,000 points, but they now both offer a sign up bonus of 75,000 points, which is a 25% increase.
And depending on which card you choose, will affect how much these points are worth, specifically if you redeem them through Chase Travel.
With the Chase Sapphire Preferred card, these points are valued at 1.25 cents per point which means the 75,000 point signup bonus is worth approximately $937.50
Then with the Case Sapphire Reserve card these points are worth 1.5 cents per point when redeemed through Chase travel, which results in a value of $1,125.
And to make things easy, both cards require a spend of $4,000 over the first 3 months of card ownership to receive the signup bonus.
Which Card Should You Get?
Now it goes without saying that both of these credit cards offer amazing value, but depending on you spending habits and travel requirements its worth understanding which card will make most sense for you and your situation.
Chase Sapphire Preferred Card
So let’s start by looking at the Chase Sapphire Preferred card.
This is a fantastic credit card that is perfect for anyone that likes to travel, but doesn’t need the additional extras that come with the Chase Sapphire Reserve card, such as the Priority Pass Select Membership, TSA PreCheck and Global Entry, just to name a few.
And whilst these benefits are be nice to have, they aren’t really necessary if you don’t travel that much.
Always remember that you will almost always receive the most value from your card by transferring the points you earn to one of the travel partners.
Earning Points
So besides being able to get a good signup bonus with a new credit card, it is extremely important to look at the credit cards ability to earn points.
As this is how you will receive most of the value from the card going forward.
So make sure the spending categories that offer the highest points earning potential are things that you know you will use the card for on a frequent basis.
So with the Chase Sapphire Preferred card there are 3 options for earning 5x points which are:
- Any travel that is specifically booked through Chase Travel.
- All Lyft rides
- And then any purchases of over $150 at Peloton (although this is limited to a maximum of 25,000 points)
There is also 3 options for earning 3x points which are:
- Eating out at restaurants, which includes purchasing take out or using delivery services.
- Making online grocery purchases
- Then using select streaming services
All travel that is not specifically booked through Chase Travel will earn you 2x points.
And then everything else will earn 1 point per dollar spent.
So as you can see, the highest points earning categories with this card are generally travel related (besides the Peloton offer), so if this looks like a rundown of what you might use the card for in the near future, then it is a good card to consider.
Benefits and Perks
Now for a credit card that only cost $95 a year, I don’t really expect that many benefits.
And the Chase Sapphire Preferred card doesn’t offer many, but the two main benefits it does offer are pretty good.
The first benefit is a $50 statement credit that can be received after you make a hotel booking through Chase Travel.
So if you do manage to use this it will basically bring the annual fee down to just $45.
Then the other benefit is the ability to receive a 10% bonus on the previous year’s total spend.
As an example, if you spent say $20,000 on the card over the course of a calendar year, the following year you would receive 2,000 points.
Then finally there is a couple of partner benefits from both Instacart and DoorDash.
With Instacart you will receive 6 months of complimentary Instacart Plus, and this includes a $15 statement credit each quarter, which works out to be a total of $30.
Then with DoorDash you will receive a complimentary 1 year DashPass, and this provides you with free delivery on eligible orders.
So let’s do a quick recap of the benefits that are on offer with the Chase Sapphire Preferred card.
- There is the $50 statement credit for hotel bookings that are made through Chase Travel
- A $30 credit that can be used through Instacart Plus
- And then assuming you spend say $15,000 in the card over the course of a year, you will receive 10% bonus points the following year, which works out to be 1,500 points that would be worth about $18.75
So, if you are able to take advantage of all of these benefits that are on offer from the Chase Sapphire preferred card, you are looking at a value of around $100.
Chase Sapphire Reserve Card
Ok so now let’s take a closer look at the Chase Sapphire Reserve card, and the first obviously thing you will notice is the fact that it has a much higher annual fee of $550.
So is the Reserve card really worth paying more than 5 times the annual fee of the Chase Sapphire Preferred card?
Well, it depends on a few things.
The first thing to consider would be if you value and actually use the added benefits that the Reserve Card offers.
And these benefits are pretty much all travel related, so if you don’t travel a fair amount each year, it might be worth considering the Chase Sapphire Preferred card.
Now one thing that is worth noting is that this card comes with a $300 annual travel credit.
And this is extremely easy use, it covers just about anything related to travel.
So it essentially brings the annual fee of $550 down to a more reasonable $250.
Earning Points
Now before I go over all of the benefits the Reserve card offers, it’s worth going over its ability to earn points.
So with the Chase Sapphire Reserve card there are a few options for earning 10x points which are:
- Hotel Bookings and Car Rentals that are made through Chase.
- Purchases made through Chase Dining
- All Lyft rides
- And then purchases made on Peloton equipment that are over $150, although this is limited to a total of 50,000 points per year.
Flights that are booked through Chase Travel will earn you 5x points.
Then the following categories will earn you 3x points:
- Eating out at restaurants, this also includes take out and delivery.
- Then all other travel worldwide
All other purchases that are made on the card will essentially earn you 1 point per dollar spent.
So as you can see the highest points earning ability with the Reserve card is twice that of the Preferred card.
What it doest include, that the Preferred card does is the ability to earn 3x points from online grocery purchases and for select streaming services.
So if you spend a lot on travel each year, specifically through the highest points earning options the Reserve card offers, then it can really provide you with a ton of value.
Benefits and Perks
So the next benefit that is really useful if you actually travel quite a bit and like using airport lounges is the complimentary Priority Pass Select membership.
This in itself is worth around $469 a year, as that is what a Priority Pass Prestige Membership costs on an annual basis via the Priority Pass website.
One thing you should know is that as of July 1, 2024, Chase will be removing the Priority Pass restaurant privileges from their cards.
This is a bit of a bummer as it was possible to receive upwards of $60 in dining credits for you and one guest.
But it still offers additional benefits such as access to Be Relax Spas and Minute suites.
Now there is also access to Chase Sapphire Lounges, and this is great if you happen to be traveling through one of the 4 airports It is currently at, which are:
- Boston Logan international Airport
- Hong Kong International Airport
- LaGuardia Airport
- JFK Terminal 4
Now it is worth noting that there will be more lounges in the near future, but at the time of making this video there is only 4 lounges that you can currently visit.
There is then a $100 credit that can be used for either TSA Pre Check or Global Entry.
Now this can sometimes be of use.
I have been using both of these benefits now for quite a few years and it can be a bit hit or miss.
Sometimes TSA Pre Check can take just as long as the regular security line.
And then with Global Entry, it’s not uncommon for me to now wait in a massive cue of people to get through security.
So I’m not 100% sold on this benefit any more.
Now there is the ability to receive a $100 credit for hotels booking that are made through ‘The Edit by Chase Travel’
This used to be called the ‘The Luxury Hotel & Resort Collection’.
So again, if you travel a fair amount and stay at hotels on a somewhat regular basis, this can potentially provide you with a lot of value.
Now there are a couple of partner benefits with both DoorDash and Instacart.
With DoorDash you will receive a complimentary 1 year DashPass that allows for free deliveries on eligible orders.
It will also provide you with a $5 credit each month, which works out to be a total credit of $60 over the course of a year.
And then with Instacart you will receive a complimentary 1 year Instacart Plus membership, and this provides you with $15 in statement credit each month, for a total of $180 over the course of the year.
So let’s take a quick recap of the benefits that are on offer with the Chase Sapphire Reserve card.
- There is the Priority Pass Select Membership that is worth around $469
- Then there is the $100 credit for TSA PreCheck or Global Entry
- The $100 credit for hotel stays that are booked through ‘The Edit by Chase Travel’ so this si worth at least $100 if you use it just once.
- And then the partner benefits that provide you with $240 in statement credits of the course of the year.
So, if you are able to take advantage of all of these benefits that are on offer from the Chase Sapphire Reserve card, you are looking at a value of just over $900.
Final Thoughts
Ok, so that pretty much covers everything you need to know about both the Chase Sapphire Preferred card and Reserve card.
And with the current sign-up bonus of 75,000 bonus points available for both cards, they both offer amazing value.
When it comes to choosing a card, it really just depends on what your needs are and if you will utilize the benefits that each card is currently offering.
I’ve had the Chase Sapphire Reserve card now for almost 8 years and really like it.
And it works specifically well for me as I am always traveling, so I actually use the all of the benefits on a monthly basis multiple times.
If I wasn’t traveling on such a regular basis I would be perfectly happy with the Chase Sapphire Preferred card, as I believe it really does provide a lot of value.
And if you would like to learn about all of the extra benefits Priority Pass can offer you, make sure to watch check out this article here.