Chase Sapphire Reserve & Preferred Comparison Review

Now that we’ve seen just how efficient and practical the Chase Sapphire Reserve really is, I feel that it’s completely necessary to make some comparison blows with it’s bro-variant, the Chase Sapphire Preferred.

Don’t get me wrong, both of these cards are tremendously valuable, however, along the lines of lucrative, this article is meant to point out which card would prove more valuable based solely on how you use it alone. Essentially, this post will go deeper into when should choosing the Chase Sapphire Reserve perks over the the Chase Sapphire Preferred’s significantly lower annual fee be a necessary, thus evaluating certain aspects of break-even analysis points that could determine so.

Chase Sapphire Reserve Card Summary:

• Apply Now
• Maximum Bonus: 50,000 UR Points
• Spending Requirement: You must spend $4,000 on purchases in the first 3 months from account opening
• Earning Rate: 3x Travel and Dining
• Direct Travel Redemption: 1.5 cents per point
• Annual Fee: $450, not waived for the first year

Chase Sapphire Preferred Card Summary:

• Apply Now
• Maximum Bonus: 50,000 UR Points
• Spending Requirement: You must spend $4,000 on purchases in the first 3 months from account opening
• Earning Rate: 2x Travel and Dining
• Direct Travel Redemption: 1.25 cents per point
• Annual Fee: $95, waived for the first year

Earnings & Benefits:

Starting out, you’ll notice that both of these cards: the Sapphire Reserve and Preferred holds the same sign-up bonus of 50,000 UR Points when you accomplish a $4,000 in spending within the 3 months account opening interval. Where the true comparison lies is within the Preferred and it’s 2X the points on Dining and Travel vs. the Reserves 3X on Dining and Travel, on top of the Reserve having a better redemption rate (1.5 cents a point) on booked travel through Ultimate Rewards Portal. Preferred’s points are worth 1.25 cents a point towards travel with a 1:1 point transfer ratio.

Now, note that we are evaluating both the cards performance within the first year, in which case, the Preferred wouldn’t have an annual fee attached and the Sapphire Reserve would have an imposed $450 AF. Lets see how their travel perks stack to further point out just what you need to spend in order for the CSR to prove value from it’s annual fee.

Travel Perks:

Along the lines of travel perks attached to the Chase Sapphire Reserve, there is a $300 annual travel credit based on a cardmember’s year covering an insane range of travel purchases, which ultimately reduced the AF to $150. Don’t forget the $100 global entry/TSA PreCheck credit which is available every 4 years, which prorates the $150 down to $125. We then value the priority pass membership at $295 a year, so there’s evidently enough perks and benefits alone to offset the fee. So long as you are able to use the perks, they will have tremendous value. Note that the sign-up bonus alone sets off the annual fee.

Furthermore, those that spend at least $6,251 or more a year on travel or dining will be better off with the Chase Sapphire Reserve, considering that you have the $300 annual travel credit readily subtracted from the $450 annual fee. Effectively reducing the fee to $150 and with Global Entry, you should expect the fee to decrease to $125; which we will then compare to the no annual fee attached to the Preferred in the first year. This would mean spending $6,251 respectively. Of course, if you are able to get a better rewards value up to 2.1, you’d only need to spend half that ($3125.50) to be worth more on Dining and Travel than the Preferred variant.

Calculations stipulate from the combined annual travel and dining out expense multiplied by 0.02. Continue by taking all your other credit card charges and multiplying those by .0025; If the sum of the two is greater than or equal to $125 for the first year, $55-$62 the next year, then the Chase Sapphire Reserve is the better option for you.

Conclusion:

Considering that the Chase Sapphire Reserve does have quite the annual fee compared to the Sapphire Preferred and it’s $95 AF, waived for the first year, it’s almost a necessity in our department to distinguish the better card determined solely on your spending. Since the earning rate is 3X on dining and travel with a minimum point value in direct travel redemption being 1.5, up to 2.1 depending on your wizardry, minimum spending on those respective categories can range from either $3,125.5-$6,251 necessary to offset the annual fee difference between both these cards and have you on the come-up with your Chase Sapphire Reserve.

This card ultimately depends on if you’re an experienced enough points and miles enthusiast, so if you think you have an organized system to justify the annual fee, then by all means, the Reserve is just an application away (of course, if you don’t fall under the 5/24 Rule). Be sure to check out our complete list of Chase Card Promotions or Credit Card Promotions for all credit card issued needs.

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