Are the Chase Sapphire Reserved Credit Card Benefits Worth the Cost?
The Chase Sapphire Preferred Credit Card is the first travel credit card I ever used. I applied for it shortly after graduating from college and thoroughly enjoyed all the benefits it offered. That being said, this year I downgraded the credit card to one of Chase’s cards that don’t have an annual fee. In hindsight, do I think the card was worth it? Let’s break it down here!
Super Low Annual Fee of $95 Won’t Break the Bank
As with most credit cards that offer decent perks, there is an annual fee. It is worth noting that this credit card’s annual fee is less than $100 a year and there are many offsetting benefits to help justify and even “cancel out” the annual fee.
The $95 fee seems affordable when you start to compare it to many of it’s competitor cards, both within Chase Bank and with other banks. Below shows you some of the top tier credit cards in the travel space and their respective annual fees. A fee greater than $500 may seem outrageous to you, but keep in mind they often offer many more benefits than the Chase Sapphire Preferred card does.
- Chase Sapphire Reserve – $550 Annual fee
- American Express The Platinum Card – $695 Annual fee
- Marriot Bonvoy Brilliant American Express Card – $650 Annual fee
Knowing that this is one of the lowest annual fee travel credit cards on the market is a great reason to consider this card more. The main two things to think about when considering applying for a credit card are (1) is the annual fee something I can afford and (2) do the perks “pay for” or even outweigh the fee? Let’s dig deeper into the perks to see!
Perks to Offset the Already Low $95 Annual Fee
Pay Off Half the Fee with a $50 Annual Hotel Credit
Most people, especially those who love to travel, will spend a couple of nights at a hotel each year. The annual $50 hotel statement credit cardholders can capture each year already “cancels out” more than 50% of the annual fee. That’s a good start in seeing if the $95 annual fee is worth it.
Annual 10% Points Bonus
Each year on your cardholder anniversary, Chase will reward you with bonus points equal to 10% of ALL your purchases made on the credit card over the past year. This reward is hard to generalize it’s value add since it will be dependent of exactly how much you spend as a cardholder.
That in mind, think about how much your expenses are each year and if you will be putting everything on this card or splitting it with other pay methods. That way you can try to decipher what this benefits means for YOU!
Earn Different Amounts of Reward Points Based on the Spend Category
Cardholders have the opportunity to earn reward points that can be redeemed for more travel through Chase’s travel portal. The amount of points earned is determined by the category the spend is in.
It is worth noting that the Chase Sapphire Preferred Credit Card does not have a “catch-all” category like some of it’s competitors. This means if your spend does not fall into one of the below categories (think gas, groceries, or furniture), then you will not earn any rewards on those transactions.
- 5x Points – Hotels and rental cars booked through Chase Travel
- 3x Points – Dining transactions
- 3x Points – Select streaming services
- 3x Points – Online grocery orders through select stores
- 2x Points – All other travel purchases
Other Perks Worth Noting
Here are a few other perks you should know about!
- Sign-On Bonus – Earn 60,000 bonus points for spending $4000 in the first 3 months (as of 09.12.24)
- No Foreign Transaction Fees – Great for international travelers
- Free Door Dash DashPass – Perfect for take-out lovers
- Credit Card Referral Bonus of Up to 60,000 Points a Year – Share the link with your travel loving friends
- Free Additional Authorized User – Nice for adding a spouse
Travel Benefits the Chase Sapphire Preferred is Missing
No Airport Lounge Access
A majority of the big bank travel credit cards offer some sort of airport lounge access. However, this card does not. That is definitely something to keep in mind when considering if you should apply for this travel credit card. If you spend ample time at airports traveling each year, having access to a network of lounges can definitely come in handy. That being said, lounge access is more of a “convenience” feature than an absolutely necessary travel perk.
If lounge access is important to you, you may have to look into a travel credit cards with a higher annual fee. Don’t let the annual fee number scare you away though because they often come along with many more benefits. One of my favorite travel credit cards is the Capital One Venture X Travel Credit Card. Read about if that is the right card for you here!
No Credit for TSA Precheck, Global Entry, or Clear
A lot of travel cards offer a statement credit for cardholders to put toward TSA Precheck or similar membership that provide you with a smoother travel experience when it comes to airport security. This is a helpful and worth it benefit it you truly do travel often, but the Chase Sapphire Preferred Credit Card won’t help you out here!
My Final Take
The Chase Sapphire Preferred Credit Card is a good entry level card for people earlier in their travel journeys. It doesn’t offer many of the “luxurious” benefit you may find with some other travel cards, but that is reflected in the low annual fee.
For $95 a year, most travelers will get their money’s worth from the card’s benefits. Not only does the annual hotel credit make up for over half of the fee each year, but the 10% annual reward points bonus and the standard reward point categories can also help make up the difference to make this card a good deal.
It’s also worth noting that the current sign-up offer of 60,000 bonus points is equivalent to about $750 through the Chase Travel Portal. That $750 alone is worth more than 7 years of paying for the $95 annual credit card fee!
