Benefits Explained
- Extra points for travel and food purchases: Very few travel cards combine the highest possible reward rates with these two categories. Earning 3 points per dollar spent on dining spend makes it easy to earn points while enjoying your travels and dinners at home.
- Chase defines travel expenses as many types of purchases that count as travel expenses more broadly than many competitors. It includes everything from airlines and hotels to campgrounds and parking lots (more on this below). This makes it easier to earn rewards.
- Lucrative Redemption Options: You have two stellar choices: transfer to other eligible loyalty programs on a 1:1 basis and book travel through the Ultimate Rewards portal at a reasonable redemption rate.
- Cost of annual fees: You’ll get a $300 travel credit each year, and you can also get up to $60 in statement credits for DoorDash food deliveries.
Explanation of disadvantages
- Hefty annual fee: As with many premium rewards cards, the Chase Sapphire Reserve comes with a steep yearly cost: $550 for new cardholders. There are ways to make up for it, but you’ll need to travel insurance and dine quite frequently.
- High APR: Since this card requires a large volume of spend to earn rewards, it is essential to note the high annual rate (APR). Based on your credit, if you don’t pay your balance every month, you’re looking at an APR of 18.49-25.49%.
If you are running a balance, interest charges will quickly wipe out the value of the rewards you earn. Use this card only if you can pay off the balance every month.
Chase Sapphire Reserve Card Signup Bonus
You’ll get 50,000 bonus points if you spend $4,000, or about $1,333 per month, on purchases within three months of opening a new account. That’s a nice bonus, considering Chase values it at $750 if you redeem your points for airfare, hotels, rental cars, or cruises offered through the Chase Ultimate Rewards portal. And if you choose to transfer your points to a Chase partner airline or hotel loyalty program, it could be worth $810, according to The Balance’s calculations of average point value. Considering other premium travel card bonuses range from $500 to $1,000, that’s not too shabby.
This sign-up bonus is for new Sapphire cardholders only. You will not be eligible if you have held another Sapphire credit card within the past 48 months or are a current cardholder.
Earn points and rewards
Your first $300 in travel purchases per year with the Chase Sapphire Reserve card will be refunded as a statement credit, giving you an additional $300 in travel rewards each year. Once you hit that limit, you’ll earn 3 Ultimate Rewards points for every dollar you spend on travel-related purchases, including some you might not expect, such as bus fares, highway tolls, and parking fees. Parking. Through March 2022, you’ll also earn 10 points for every $1 spent on Lyft rides. If you’re a carpool fan, this offer is a great way to earn extra points.
On an ongoing basis, you’ll also earn 3 points per $1 spent on dining purchases, making it even easier to earn rewards with this card than with other premium travel cards. All other purchases will earn 1 point per dollar spent.
If you’re a Chase Freedom account holder, you can combine the Ultimate Rewards points on this card with those you earn on the Sapphire Reserve to reach reward goals even faster.
Redemption of rewards
Chase Sapphire Reserve points are most valuable when redeemed for travel, either through the Chase Ultimate Rewards site or by transferring your points to an airline or hotel loyalty program.
On the Ultimate Rewards site, which works like a typical travel search site, you’ll earn 1.5 cents per point when booking airline tickets, hotel accommodations, car rentals, activities, and Cruises. Using your points for cashback (via statement credit or re-deposit) will earn you 1 cent each – the baseline sought after by rewards hunters. In other words, 20,000 points would cost you $300 to travel, compared to just $200 if redeemed for cash.
You can also:
- Buy gift cards and experiences
- Buy points online
Transfer of points
You can earn even more value by transferring your points to loyalty programs at 13 partner hotels and airlines. According to our research, points with Hyatt and United Airlines hotels are worth more than 2 cents each on average. You can transfer your Ultimate Rewards points to any partner at an impressive 1:1 ratio (in 1000-point increments). This is much better than the ratio offered by some competitors.
If the airline is part of an alliance, your buyout options expand further. For example, United points can be used for flights on most 28 Star Alliance partners.
How to get the most out of this card
Start by spending $300 on travel as soon as possible to use the annual travel credit right away because you won’t earn triple points on travel until that happens. Then, focus on meeting your $4,000 spending requirement in the first three months to make your sign-up bonus points. Those alone will offset the $550 annual fee in the first year.
Then, redeem your points for travel through the Ultimate Rewards portal or, better yet, transfer them to partner airlines or hotels with high-value points.
For tips on maximizing rewards with this card, read ” Chase Ultimate Rewards Program: Your Complete Guide .”
The excellent benefits of Chase Sapphire Reserve
This card offers many benefits that we believe go beyond what is often offered by travel rewards cards. Besides travel shopping credit, a few of the others include:
- Global Entry / TSA Precheck Fee Refund: Global Entry and TSA Precheck can speed your way through airports. $100 for Global Entry or $85 for TSA Precheck — every four years.
- Airport Lounge Access: Unlimited access to Priority Pass Select Lounges, Cafes, and Markets – a $429 value. This benefit is free for primary cardholders and up to two authorized users, but additional guests are $27 each.
- Trip Cancellation, Interruption, or Delay Coverage: If your trip is canceled or curtailed due to circumstances beyond your control, you may be reimbursed for non-refundable travel expenses. And if your trip is delayed for more than six hours or overnight, you and your family are covered for unreimbursed expenses. Both plans are subject to limits.
- Coverage for Lost or Delayed Baggage: Damaged or lost baggage is covered for up to $3,000 per passenger. A separate program reimburses essential purchases if your bags are delayed for more than six hours.
- Collision Damage Waiver for Primary Auto Rental: This benefit is unusual among credit cards because you don’t need to use your insurance policy if your card is lost or damaged. Rental during a collision. You will be covered up to $75,000.
- One Year Lyft Pink Membership: Activating this new offer (a $239 value) will give you access to 15% off Lyft rideshare purchases, priority airport transfers, and more Again.
- DoorDash DashPass Membership: This membership waives delivery charges on all DoorDash product orders of $12 or more. A DashPass subscription typically costs $9.99 per month, so this benefit has an annual value of over $100.
Other Features of Chase Sapphire Reserve
- Insurance for stolen or damaged purchases
- Refund when the merchant does not accept returned item
- Extended Warranties
Client experience
In 2019, JDPower ranked Chase fourth in customer satisfaction, scoring 807 points on a 1000-point scale. Chase Sapphire Reserve cardholders have several resources that reinforce the high level.
You can check your FICO score online and on the Chase mobile app for free, anytime after a one-time sign-up. Track your credit health through Credit Journey, a credit dashboard that summarizes your credit report and credit information.
Security functions
Along with standard security features such as suspicious transaction alerts, Chase also allows you to easily lock your card through the Chase mobile app if you misplace your card to prevent potential fraud. Lost or stolen cards are also replaced free of charge.
Fees to watch
The Chase Sapphire Reserve offers a standard range of fees, most of which do not apply if you make payments on time and only use the card for purchases. There are no foreign transaction fees, which is excellent for travelers, but the card still offers an annual fee of $550. High annual prices are every day among premium travel rewards cards, but be prepared to pay for the value you get.