Sunday, 7 August 2022

Deciding between the Chase Sapphire Reserve & Preferred Card | Why I Prefer the Sapphire Reserve

Deciding between the Chase Sapphire Reserve & Preferred Card | Why I Prefer the Sapphire Reserve
31 Jul

Hey, it's Ernest from Trip Astute In this video, I'm going to address a question that seems to come up a lot on the channel, which is: "which should I get — the Chase Sapphire Preferred or Sapphire Reserve ?" the Chase Sapphire cards (light chiming music) The Chase Sapphire cards are some of the best travel rewards cards on the market

It's often the first card that gets recommended due to Chase's strict approval rules like 5/24 and 2/30 However, deciding between the two cards can be tough I know the Sapphire Reserve has a $450 annual fee that's hard to stomach a lot of people, especially if you're just getting started in the hobby So today, I thought I'd walk through my thought process on deciding between the Sapphire Preferred card and Reserve card You might feel different about it and that's completely ok

Everyone's going to have a different spending and travel pattern, so there's no right or wrong answer But I thought it would be helpful to hear why I prefer one card over the other If anything, you might be able to baseline my use case against yours to see if you would benefit from one card over the other But first, if you're new here, I want to welcome you to our channel Trip Astute is a travel channel that is focused on sharing ways to make travel easier, affordable, and more enjoyable

Traveling can be stressful and expensive, so we're looking ways to help you maximize your experience through travel tips points and miles, and innovative gear If that's something that interests you, then consider subscribing to our channel So, getting back to credit cards, those of you that watch this channel regularly know that I have the Sapphire Reserve and I really like it I got the Sapphire Preferred in 2012 and I honestly never imagined that it would ever get replaced Then when Chase announced the Sapphire Reserve in 2016 with a 100,000 point bonus offer, it seemed like a perfect card had arrived for me, for the following reasons

Number 1: 100,000 points opening bonus This was the initial offer when the card first came out Since Chase reported several quarters of losses after the card was released, they reduced the bonus to 50,000 points and have kept it there since then For those of you who got the card when it was first offered, it was an incredible deal and good reminder of why might be sometimes worth slowing down on your credit card applications in case an offer like this comes around again You don't want to miss the opportunity because you've been aggressively applying for so many cards

Number 2: Additional bonus points for dining and travel Since these are categories of spend that I tend to use a lot, I knew I would be able to take advantage of it It's only one more bonus point over the Sapphire Preferred, but it all adds up Number 3: Annual $300 travel credit This credit is automatically applied to your account every year as credit whenever a qualified expense is charged

Number 4: Priority Pass lounge membership The Reserve card comes with lounge membership for the Priority Pass network Currently, you're allowed to bring guests with you into the lounge though they're restricting the number to two guests starting in late August You can also use Priority Pass to get reimbursed for meals at some airport restaurants Number 5: Primary car rental insurance

This allows me to opt out of the expensive and confusing insurance offered by the rental car companies If you rent cars often, this can be a great benefit to have For more information on primary versus secondary insurance, check out our video on the topic Number 6: Global Entry reimbursement The card reimburses the Global Entry application and renewal fee, and can be used once every five years

Number 7: Additional redemption value from Chase If you use the Chase Travel Portal, you can redeem your Ultimate Reward points at 15 cents instead of the usual 125 cents For more information on how to do it, we did a video on determining when to use the Chase Travel Portal

Okay, so that's all nice and good, but you might be wondering how I stomach the $450 annual fee Well for me, it doesn't quite feel like $450 and here's why Right off the bat, you're getting a $300 credit every year that gets automatically applied whenever there's a qualifying expense In my case, I usually notice my parking and ride-sharing charges get credited on my account Even if you don't travel that much, you might still be able to use that $300 in your daily life since Chase has a fairly broad definition of what qualifies as travel

That brings the annual fee down to $150, which is $50 more than Sapphire Preferred Now assuming that you spend $420 a month on dining and another $420 on travel, that would total around $10,000 on travel and dining expenses a year The only reason I'm using those numbers is because that's how much I actually spent last year when I look at my travel and dining totals Some of it was for work, so I don't think I'll spend nearly as much this current year, but it gives me a ballpark estimate how much value I'm getting from the bonus categories According to my spending last year, I came out on top with the Sapphire Reserve, and if you add in the extra benefits that I got, such as lounge membership and the Global Entry credit, then the value proposition is even higher

In fact, I renewed my Global Entry earlier this year so that was another $100 that I was able to extract from the card So I'm confident that I will have gained more value than the cost this year I know a lot of people have been disappointed with the Priority Pass lounges While some of them have been nice, we have been to our share of not-so-great ones too But when I think of the amount of money that I would have spent eating and drinking at the airport, I tend to feel a bit more appreciative of the perk

We used our Priority Pass lounge pass seven times last year So suppose we had spend $15 on food and drinks in the airport each time, we saved over $100 with our Priority Pass membership Again, these numbers are estimates and your situation may be completely different for me The Reserve card is worth keeping since we tend to take advantage of the benefits Fiona, on the other hand, also has a Sapphire Reserve, but she's looking to downgrade before her next annual fee is up

While she takes advantage of a lot of the perks, we think that we can probably get away with having one Reserve card between us since we often travel together Fiona is a lot better about packing her lunch as well and not paying for it every day, so she typically spends a lot less on dining out than me For those of you just starting out but anxious about the Reserve's annual fee, which isn't even waived the first year, I honestly think you shouldn't hesitate to give the Sapphire Preferred a try The Preferred's annual fee of $95 doesn't get charged until your second year, so it won't cost you anything the first year If you find that you want more, than you can always upgrade to the Sapphire Reserve later

And if you already have the Sapphire Reserve but are worried about the amount of value that you're going to get in the following years, know that you can always downgrade to the Sapphire Preferred before your annual fee is charged One last thing to keep in mind is that the Sapphire Reserve is a more difficult card to get an approval for than the Sapphire Preferred The Sapphire Reserve requires a minimum credit limit of $10,000 which can be difficult when you're first starting out According to Credit Donkey, the average credit score to get an approval is 750, which is fairly high For more information on approval requirements for Chase's Sapphire cards, check out Ask Sebby's video on it

He does a great breakdown of what you need and should consider if you're applying for the Reserve card Do you have a Sapphire Reserve or Preferred card? If so, let me know why you chose one over the other I think it helps others to hear why people chose certain cards and the reasoning behind it If you're interested in getting a new credit card and want to help support the channel, visit our Card Offers page on our website It's an easy way to help us out and get that awesome new credit card

If you enjoyed this video and found it useful, please give us a thumbs up and consider sharing our video with others who might benefit from our content Until next time, travel safe and travel smart

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