Sapphire credit cards
$450
A $300 annual travel credit lowers the effective annual fee to $150
50,000 Ultimate Rewards points for the Reserve, 60,000 points for the Preferred.
$4,000 initial spend
($670 net value, .17/$)
Signup Bonus Chart3x Travel (≈5.1%)
3x Restaurants (≈5.1%)
1x Everywhere Else (≈1.7%)
No Foreign Transaction Fee
We recommend that most people use the Sapphire Reserve Card and Freedom Unlimited (or Ink Unlimited) combination. It is the best simple path to high credit card rewards and valuable travel benefits.
More advanced credit card collectors will certainly be attracted to the Sapphire card's valuable signup bonus, and may want to hold onto at least one of the Sapphire cards to retain the ability to transfer Ultimate Reward points and for their primary rental car and enhanced travel insurance benefits (and/or for the Sapphire Reserve's airport lounge access).
Because it is hard to use credit card travel benefits during the pandemic, Chase has made some temporary changes to their cards.
- The Sapphire Reserve earn 5x points (8.5%) on up to $1,500 per month of grocery store purchases during May and June. The Sapphire Preferred earns 3x points (5.1%).
- You can "cash out" your Ultimate Rewards points by using them to offset grocery store, restaurant, and home improvement purchases. If you have the Sapphire Reserve, you'll get 1.5 cents per point. If you have the Sapphire Preferred, you get 1 cent per point. For example, you could spend $600 at restaurants and then use 40,000 Ultimate Rewards points to erase the charges. If you might ordinarily use your points to purchase travel through the Chase website, it would be a better deal to "cash out" now and then use the cash to purchase travel later. You'll need to go online and apply your points to specific purchases. But if you are likely to save your points to use for Hyatt hotel nights or frequent flyer tickets, it is better to hold onto your points. This "Pay Yourself Back" benefit is available till the end of September. Announcement.
- Purchases made at grocery stores and gas stations count towards the Sapphire Reserve card's $300 annual travel credit.
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Chase Sapphire Card Options
There are two different Chase Sapphire cards. If you are just interested in the signup bonus, the "Preferred" version is the better option. But, the Reserve version makes a more useful addition to your core credit card collection.
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Sapphire Reserve. The premium Sapphire Reserve card has a lot of extra benefits and earns higher reward rates on travel and restaurant spending, but also has a $550 annual fee. However, its $300 automatic travel credit reduces your typical out-of-pocket expense to $250 per year, and the DoorDash credits can reduce your annual expense even further. If you value the airport lounge access, spend a bunch on travel and restaurant spending (and don't use another card for this spending), and/or plan to take advantage of the Sapphire's card higher Ultimate Rewards "cash-out" rate, it can be easy to justify the higher fee. |
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Sapphire Preferred. The Sapphire Preferred card typically has a higher signup offer of 60,000 points, and just like the Reserve card, unlocks the ability to transfer your Ultimate Rewards points to airline and hotel partners and offers primary car rental and enhanced trip insurance coverage. Official Webpage. Signup Bonus Chart. Even if the Sapphire Reserve is your better long-term option, if you are planning to collect signup bonuses, you are better off starting with the Sapphire Preferred. You'll earn a higher sign-up bonus, pay a lower fee while you are focusing your spending on other cards, and then once you start shifting your spending away from meeting initial spending requirements, you can convert it to the Sapphire Reserve (if you still want to). |
Introduction to Ultimate Rewards
Ultimate Rewards is the name of Chase's own rewards program. Ultimate Rewards Guide
- Ultimate Rewards points can be transferred to many different frequent flyer and hotel loyalty programs. his gives you the flexibility to take advantage of award space on over a hundred different airlines. In many cases, you can choose to book a flight through one of several different partner programs, allowing you to take advantage of whichever program requires the fewest miles and fees for your trip.
- Unlike the other "transferable" point programs, you can redeem your Ultimate Rewards Points for good value, without needing to hassle with frequent flyer tickets. Ultimate Rewards points can be converted into Hyatt hotel points, which can easily be used for award nights at point values typically over 1.7 cents each. If you have the Sapphire Reserve Card, you can "cash out" your points at 1.5 cents per point. And you can get similar value using your points to purchase Southwest Airline tickets.
- We value Ultimate Reward points at 1.7 cents each. Because you can take advantage of award space and "sweet spots" from many different frequent flyer programs, Ultimate Reward points are worth more than any single type of airline miles. If you highly valuable premium-cabin award tickets, Ultimate Reward points are worth even more. If you want to avoid the hassles associated with frequent flyer tickets, they are worth a little less. How Much are Points Worth?
- The Sapphire Reserve or Sapphire Preferred card makes the Ultimate Rewards points you earn from other cards more valuable. Only Sapphire cardholders (and cardholders of the Ink Preferred small business card) can transfer their points to airline and hotel partners. In addition, Sapphire Reserve cardholders get 1.5 cents per point, and Sapphire Preferred (and Ink Preferred) cardholders get 1.25 cents per point, rather than 1 cent per point, when purchasing travel through Chase. These benefits extend to all your Ultimate Rewards points, not just to ones earned directly from these cards.
While you can still typically get the most value for your points through good-value frequent flyer tickets, you can easily get good value, with much less effort, through these other types of redemptions. And you can sometimes get as much as 3 cents in value on better-than-normal Hyatt redemptions.
Even if you use them like cash, the reward rate on any purchase with the Chase Reserve / Chase Unlimited combo is 2.25 cents per dollar, the reward rate on travel and restaurant purchases with the Sapphire Reserve is 4.5 cents per dollar, and the signup bonus for the Sapphire Cards is worth $750.
For example, if you have the Chase Sapphire Reserve card, the points you earn from the Freedom Unlimited card can be transferred to airline partners. But, if you don't have one of these cards, the points are only worth 1 cents each (for purchasing travel through Chase).
Collecting the Signup Bonus
- It is worth signing up for this card, just to collect the signup bonus. After subtracting the annual fee and the opportunity cost of using the card for $points of spending, the calculated net value for the initial year is $50000 (Expression error: Unrecognized word "points". cents per dollar spent). In addition, the card comes with a $300 travel credit. This is one of the most valuable signup offers of any card.
- You can only have one of the Sapphire cards at a time. You can't sign-up for both the Reserve and Preferred version of the card. You'll need to choose one or the other. Once you've signed up, you aren't eligible to apply for the other card for 48! months. If you've signed up for more than 5 credit cards in the last 24 months, from any bank, you won't be approved for either.
- If you are only interested in the signup bonus, you should get the Sapphire Preferred card. It has a higher signup bonus of 60,000 points, and a lower annual fee of $95.
- It is difficult to collect a signup bonus a 2nd time, because of the Chase 5/24 rule. You are eligible for a Sapphire card signup bonus, if you haven't already earned the bonus, from one of the Sapphire cards, during the last four years. However, due to the Chase 5/24 rule, if you've been signing up for other cards, you won't be able to get approved, when you reapply. You'll need get under the 5/24 limit, before you can earn one of the bonuses again. Dealing with the Chase 5/24 Rule.
- You can earn signup bonuses from multiple different Chase Ultimate Rewards cards. You are limited to only one version of the Chase Sapphire card (every 24 months), but there is also the Ink Preferred, Ink Cash, Ink Unlimited, Freedom, and Freedom Unlimited cards.
After subtracting the annual fee, and the opportunity cost of using the card for $4,000 of spending, the calculated net value of the sign-up is $670 (17 cents per dollar spent). Your value may be higher or lower, depending on how much you value the Ultimate Rewards points. Introduction to 'Transferable' Reward Points.
Taking Advantage of the Travel Credit (Sapphire Reserve)
The Sapphire Reserve card provides an annual $300 travel credit. Every year you have the card, the first $300 you spend on travel is automatically taken off your credit card bill. This works for a very broad range of "travel" purchases, including airfare and hotels, but also things like cruises, tolls, and parking charges. Unlike the travel credits available on some other cards, everyone should be able to easily take full advantage of the credit.
Initially, the Sapphire Reserve Card's travel credit was issued on a calendar year basis, allowing you to qualify for two credits, during the first year you had the card. For anyone who applies for the card now, the travel credit is issued on a cardholder year basis, meaning you are limited to $300 in credits, each time you pay the annual fee.
Taking Advantage of the DoorDash credits (Sapphire Reserve)
The Sapphire Reserve card comes with $60 in DoorDash credits for 2020 and 2021. Your Sapphire Reserve account page will show how much of your credit has already been received. Unlike similar credits from some Amex cards, this credit isn't divided up by month. You can use it all at once or spread it across multiple orders. It is unclear whether this benefit will continue beyond then. Existing cardholders can offset up to $60 of their next annual fee (along with getting a $60 windfall this year). New cardholders can offset up to $120 off their first annual fee.
To make things sweeter, you'll also get a free "DashPass" membership until at least the end of 2021. This membership, which normally costs $10 per month, provides lower service fees and free delivery from any of DoorDash's restaurants. The restaurant needs to have a DashPass checkbox and the order must be for at least $12. This significantly reduces any premium for taking advantage of your DoorDash credits and can save you additional money over the course of the year. You need to register your card at a special webpage to start your membership. Note that this membership, but not the credits, is also available to Sapphire Preferred customers.
You can also use your credits for pickup. This lets you delivery tips, the "lowered" service charge, and any delivery charge that isn't covered by DashPass. For many restaurants prices are the same through DoorDash as they would be directly, but for some others, prices can be higher.
If you register online, you can also receive 250 Wyndham reward points for each order (plus 2,000 points for your first order). You should also be able to receive a promotional reward for your first order through various cash back sites.
Other Notable Benefits
- Airport lounge access. Like the other premium cards, you get free access to over a thousand airport lounges via a free Priority Pass membership. You are limited to two guests. Get Free Airport Lounge Access from a Credit Card.
- Automatic travel insurance. Whenever you purchase travel with your Sapphire Reserve card, you'll get free trip cancellation and interruption insurance, as well as additional coverage for trip delays, bag delays, and lost luggage. The Sapphire Preferred card offers slightly weaker versions of these benefits.
- "Primary" rental car insurance. If you use this card to pay for your rental car, you'll get primary rental car insurance. Unlike the "secondary" insurance you get from most other cards, if you damage your rental car, you don't need to involve your personal auto insurance company. Credit Cards That Provide “Primary” Rental Car Coverage.
- Lyft benefits. You get a free year of Lyft Pink, which provides a 15% discount, priority airport pickups, 3 free 30 minute bike or scooter rides per month, and some other benefits. This is likely a one-time deal for 2020 and not an ongoing benefit.
- Free roadside assistance. The roadside assistance benefit that comes with most credit cards simply connects you a to nearby service provider. But this card actual pays for your roadside assistance services, including towing, lockout assistance, spare tire installation, jump starts, or emergency fuel. Up to $50 per incident. Get Free or Discounted Roadside Assistance with these Credit Cards.
- Access to Chase's Luxury Hotel and Resort Collection. Along with other Chase cards, you'll get access to Chase's luxury hotel program. When you use the program to book one of the participating hotels, you'll receive a set of valuable benefits, including free breakfast, late check-out, and a hotel-specific amenity (which is typically a $100 hotel, restaurant, or spa credit). Take Advantage of Luxury Hotel Programs for Valuable Extra Perks.
- Car rental elite status. Like all other Visa Infinite cards, your card entitles you to elite status with National car rental. Instant Car Rental Elite Status.
- Visa Infinite Hotel benefit. Visa Infinite cardholders get access to the Visa Luxury Hotel program. At about 200 hotels, Infinite card holders get an additional benefit (typically some sort of $100 credit) on top of what is available to Signature cardholders. You'll also have access to the regular Visa Signature hotel program, which provides slightly weaker benefits at a much larger collection of hotels. Take Advantage of Luxury Hotel Programs for Valuable Extra Perks
- Access to Visa Signature Offers. Your card entitles you to a set of special offers available from Visa.
- Free Shipt membership. Infinite holders can signup for three years of free delivery with this Instacart competitor (normally $99 per year). Signup.
- $100 TSA fee credit. Every four years, you can receive an automatic reimbursement of your Global Entry or TSA PreCheck application fee (up to $100).
- sbe Hotel benefits. You get your fourth night free, continental breakfast, free Wi-Fi, the possibility of an upgrade or late checkout, and a $30 hotel credit towards food, when you pay for one of the small number of sbe hotels (Delano, SLS, Mondrian, etc.) with your Sapphire Reserve card. You'll need to book through a special site. You can probably find lower rates elsewhere, so you'll need to check to see if the benefits are enough to offset any difference in price.
The Sapphire Preferred card provides primary rental car insurance, slightly less valuable travel insurance benefits (primarily a 12 hour delay, rather than 6 hours, before trip delay insurance kicks in), access to Chase's Luxury Hotel program, the free DoorDash DashPass membership, and access to the Visa signature luxury hotel and discount offers programs.
Bonus Categories
- The Sapphire Reserve card earns the highest possible rewards on many travel purchases. 3x Ultimate Rewards points, valued at 5.1 cents per dollar, is the highest reward rate you can get on many travel purchases, such as with hotels and car rentals. You can earn 5x Membership Rewards on Airfare with the Amex Platinum card (with less valuable travel insurance) or 5x ThankYou points on online travel agencies and airfare (with no travel insurance) with the Citi Prestige card. Best Credit Cards for Travel Spending.
- The Sapphire Reserve earns great rewards on restaurant spending. However, if you are comfortable using your points for frequent flyer tickets, you can earn higher rewards with the Citi Prestige or Amex Gold card. Best Credit Cards for Restaurant Spending.
- The Sapphire cards earn fantastic rewards on Lyft spending. With the Sapphire Reserve, you'll get 10x Ultimate Rewards per dollar, valued at 17 cents per dollar. With the Sapphire Preferred (or all Ink and Freedom cards), you'll get 5x points, worth 8.5 cents per dollar. In addition, you can get your Lyft Pink discount, 3x Hilton Honors points, and 1-2x Delta miles (which is all available regardless of what credit card you use).
- The Sapphire Preferred card only earns 2x points, rather than 3x points on these categories. As long as you spend more than $3,000 per year on travel and restaurants, the extra rewards from the Sapphire Reserve card more than offset its higher out of pocket expense.
- You don't want to use these cards for your everyday spending. You'll earn higher rewards from a good general-purpose reward card. Get a Great General Purpose Reward Card and Use It for All of Your Spending.
Getting Rid of the Card
Before cancelling or converting your Sapphire Reserve card, make sure you've used up this year's travel credit. If your not planning a trip soon, you can purchase a gift card from hotels.com, an airline, or other travel provider.
Be careful before cancelling your Sapphire card. If you still have a significant balance of Ultimate Rewards points, you need to keep at least one Ultimate Rewards credit card (any of the Sapphire, Freedom, or Ink cards), or you will lose your remaining points. You need to have an annual-fee-based card (Sapphire Reserve, Sapphire Preferred, or Ink Preferred) to continue to be able to transfer your points to airline and hotel partners. Alternatively, you can transfer your Ultimate Rewards points to another person in your household who has an Ultimate Rewards card.
If you want to stop paying annual fees, your best bet is usually to convert to the Freedom Flex Card. You can always convert back to a Sapphire card (at any time) if you want to. The Freedom card earns 5x Ultimate Rewards points on up to $1,500 per quarter of spending in a rotating set of bonus categories. While you may not always be interested in making the extra effort to maximize this card, it is nice to have the option. When converting cards, you can obtain multiple copies of the Freedom card, increasing the maximum bonus you can earn each quarter.
When downgrading your card, you'll get a prorated rebate of the annual fee. So it can be worthwhile doing so, even if you forgot to downgrade at your account anniversary. If your travel credit resets on your anniversary date, you can wait to convert your card until after you've used your the new year's credit and get the remaining portion of your annual fee refunded.
If you are collecting signup bonuses, you've got another reason to convert rather than cancel your card. If you want an existing or newly introduced Ultimate Rewards card sometime in the future, you'll likely be blocked by the 5/24 rule. If you've converted to a Freedom card, you'll have the option to product change to the card instead.
If you are under 5/24 and it has been two years since you've earned the signup bonus on a Sapphire card, you might consider cancelling or converting your card, reapplying, and earning the signup bonus again. If you are under 5/24 and have a lot of Chase cards, you might consider cancelling just to lower your total number of Chase cards and decrease the risk of going for new signup bonuses.