Chase Sapphire Reserve Or Preferred: Which Card Is Better?

Chase Sapphire Preferred or Reserve?

What credit card should I use? It's the most popular question I've been asked. Whether it is friends, family, members of our Facebook group or just people email me directly, this one is the top one. People just starting out ask it the most. People should start with Chase cards because of the Chase 5/24 rule, according to most of the people in this hobby. When they were younger, they didn't agree on whether they should start with the Chase Preferred or the Chase Reserve.

Update 10/25:

I figured it was time to look at the numbers again and see which card was the better one.

The offers may have ended or changed.

Why Start With Chase Cards?

Many people in the miles and points hobby start with Chase because of the Chase 5/24 rule. Chase products are not available after your first four applications. Most people think that your first few applications should be for Chase cards.

Chase has a great rewards program and they have one of the best transfer partners out there in Hyatt.

We know you want to get a Chase card, but which one should you get?

CLICK HERE to compare this and other travel credit cards.

The Chase Sapphire Card Comparisons

In the first year, which card comes out on top?

Chase Sapphire Preferred

Here is what the Chase Sapphire Preferred now offers:

• Earn 60,000 Ultimate Rewards points after spending $4,000 within the first 3 months of card membership.
• $50 hotel credit every cardmember year (must book through Chase Travel)
• The earning structure for the card:
  • 5X on Chase Travel
  • 3X on dining, select streaming and online grocery (excludes Target, Walmart & wholesale clubs)
  • 2X on travel
  • 1X on everything else
• Get a 10% back in points anniversary bonus as well.  This happens after you renew and pay an annual fee. It is based off of the money spent on the card.  So if you spent $25,000 in a year you would get 2,500 points.
• $95 annual fee

Chase Sapphire Reserve

Here is what the Chase Sapphire Reserve now offers:

• Earn 80,000 points after spending $4,000 within the first 3 months of card membership.
• The earning structure for the card.
  • 10X on Chase dining (almost worthless), hotel and car rental purchases through Chase Travel.
  • 5X on airline travel booked through Chase Travel
  • 3X on all other travel and dining
  • 1X on all other purchases
• $300 travel credit
• $100 Global Entry credit every 5 years
• $550 annual fee

Chase Sapphire Preferred Or Reserve: Breaking Down the Numbers

Let's crunch the numbers between the two cards to make a decision.

Numbers For Cash Out / Simplicity Lovers

There are two ways to cash out points: through Pay Yourself Back or through the travel portal.

Chase Sapphire Reserve:

• $550 Annual Fee
  • -$300 Travel Credit
  • -$30 DoorDash credits ($5 per month for 12 months with a 50% value)
  • $220 net cost
• 80,000 point welcome offer with 1.5 cent cash out option via Pay Yourself Back.

The Global Entry credit and lounge access are not included in the value of the reserve.

Chase Sapphire Preferred

• $95 Annual Fee (it may still be possible to get a no annual fee offer in branch)
  • $25 Yearly hotel credit (it is a $50 credit that I value at 50%)
  • $70 Net cost
• 60,000 point welcome offer with a 1.25 cent cash out option via Pay Yourself Back.

There is a positive value of $680 in the first year of the program.

If you want to cash out your points or use the Chase travel portal with your points, the Chase Reserve is the better option. The lounge access, Global Entry credit, and other things are included.

Numbers For Travel Partner Lovers

If you prefer to use Hyatt, United or Chase's Aeroplan, what do you do?

The gap would be widened substantially if the redemptions were at 1.5 cents a piece. In the first year, the reserve has a net positive of $710 The changes would make the preferred look different.

Chase Sapphire Preferred

• $95 Annual Fee (it may still be possible to get a no annual fee offer in branch)
  • $25 Yearly hotel credit (it is a $50 credit that I value at 50%)
  • $70 Net cost
• 60,000 point welcome offer with a 1.50 value per point to use for travel partners.

The first year of the CSR has a net positive value of $830, which is $150 better than the first year of the Sapphire Reserve.

CLICK HERE to compare this and other travel credit cards.

But What About Pay Yourself Back With Current Points?

If you redeem 288,000 points you can make up the $720 difference. The offer may not be renewed in September of 2021.

This adds fuel to the CSR fire since the Chase Reserve is the better option now.

What About After the First Year?

The waters become muddy when you get to the end of the first year. If Chase extends or replaces the DoorDash credit, it will get smaller. The lounge access could be a big factor in your decision making if you travel frequently. If you have a Priority Pass restaurant at your home airport, you may be interested in this.

Increasing the dining earn rate to 3X, the same as the Reserve, has made the upgrade more difficult. The Reserve has a better travel insurance policy and earns 3X per dollar on travel, compared to 2X with the Preferred, but dining is a big expense for many.

Chase Sapphire Preferred Or Reserve Final Thoughts

For the first time in four years, I'm going to say that people should get the Chase Reserve instead of the Preferred. The card offers a better return in the first year.

Have Your Cake & Eat It Too

You can upgrade into a second product if you want, but you can't sign up for the first one.

If you sign up for the preferred card, you can upgrade it to the reserve card. You would have to have a Chase Freedom card in order to do this.

The upgrade would allow you to get the increased 100,000 point welcome offer, while also, getting the increased value from pay yourself back and all the perks of the Sapphire Reserve. Remember that it takes a while for the annual fee to bill after upgrades for the Reserve card too, which offers a little extra value too.

Capital One Venture increased their welcome offer by 75k.

Capital One Venture is increasing their offer. You can earn 75,000 miles after spending $4000 in the first 3 months of your card's existence. Venture will give you 2X miles on all purchases and Capital One travel. Cash back and transfer to travel partners can be done with points.

Learn more about this card and its features!