Chase Sapphire Comparison: Preferred Vs. Reserve

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Now is the time to apply for a Chase card.

There are two travel rewards credit cards that are very compelling. It can be difficult to decide which card makes the most sense since they are both excellent.

The changes we have seen to the cards over time made me want to compare them. For the first time in years, the Chase Sapphire Reserve has a better bonus than the Sapphire Preferred.

The first thing we need to do is talk about what the two cards have in common, then we need to talk about which card is better for you.

What both Chase Sapphire cards have in common

There are a lot of similarities between the Chase Sapphire Reserve and the Chase Sapphire Preferred. Also, among other things.

Advantages of the Chase Sapphire Preferred

There is a lot to like about Chase. The card has an annual fee.

• A solid welcome bonus of 60,000 Ultimate Rewards points after spending $4,000 within three months
• 3x points on dining, streaming services, and online grocery store purchases (excluding Target, Walmart, and wholesale clubs) and 2x points on travel, plus 5x points on flights booked through the Chase Travel Portal
• 10% anniversary bonus points, calculated by your “base” earning per dollar spent
• A $50 hotel credit every cardmember year, usable through the Chase Travel Portal
• The ability to transfer points 1:1 to Chase Ultimate Rewards airline and hotel partners, or redeem them for 1.25 cents each toward a travel purchase

What makes the preferred one better than the reserve? The lower annual fee, 10% anniversary bonus points, 3x points on online grocery store purchases, and a $50 annual hotel credit are some of the things that have been reduced.

You can read a full review of it.

Advantages of the Chase Sapphire Reserve

There is a lot to like about the Chase Reserve. The card has an annual fee.

• A welcome bonus of 80,000 Ultimate Rewards points after spending $4,000 within three months
• 3x points on dining and travel, plus 10x points on hotels and car rentals booked through the Chase Travel Portal, and 5x points on flights booked through the Chase Travel Portal
• A $300 annual travel credit, which can be applied toward virtually any purchase
• A Priority Pass membership, offering access to 1,300+ airport lounges around the world
• The ability to transfer points 1:1 to Chase Ultimate Rewards airline and hotel partners, or redeem them for 1.5 cents each toward a travel purchase
• A $5 monthly DoorDash credit (in addition to the DashPass); this expires after three months, so you could potentially use $15 worth of credits every three months
• Perks with Instacart, through July 31, 2024, including an Instacart+ membership for 12 months, plus a $15 monthly Instacart credit; the Sapphire Preferred offers a six month Instacart+ membership plus a $15 quarterly credit

The reserve is better than the preferred one. The card should only cost you $250 a year after you take into account the $300 travel credit. The main advantages are a Priority Pass membership, 3x points on travel, the ability to redeem points for 1.5 cents each toward a travel purchase, and the improved temporary perks with DoorDash.

You can read a full review of the reserve.

Tip: Apply for the Sapphire Reserve

I would recommend applying for the Chase Reserve if you want to get one of the two cards. The value of getting the card for the first year is greatly improved by the larger bonus.

You can give the card a try for a year, and if you like, you can upgrade to the preferred tier after a year. You can pick up the better bonus and still have the flexibility to later get either card, all while taking advantage of the great Sapphire Reserve benefits.

Which Chase Sapphire card is better?

The pros and cons of the Chase Sapphire Reserve are shown above. If you want to try out the card, I would recommend applying for it and giving it a try for a year. How should you make a decision about which card is best for you?

Most people will choose the Sapphire Preferred since it has generous benefits and a lower annual fee. People don't like paying more in annual fees than they have to. There are three circumstances in which I think the reserve is better than the preferred one.

The real cost difference between the two cards is around $155 a year. I take the value of the travel credit into account when calculating the annual fee for the Sapphire Reserve.

The three areas where you can get more value with the Sapphire Reserve are:

Do you value a Priority Pass membership?

Priority Pass memberships are one of the major benefits of the Chase Reserve. You can take two guests into lounges with you for free.

If you don't have a membership, a Priority Pass membership could be worth more than a year's worth of credit card payments.

Priority Pass memberships issued through Amex don't give you a dining credit at many major airports, but they do give you credits at Priority Pass airport restaurants, where you can get a dining credit at many major airports

Do you value 1.5 cent per point redemptions?

There are a number of ways to use the points. You can either redeem the points for cash or transfer them to a hotel or airline partner.

The points earned on both cards have the same value if you transfer them to a partner, but if you redeem them as cash, the values are different.

• Points earned on the Chase Sapphire Preferred can be redeemed for 1.25 cents each toward the cost of a travel purchase
• Points earned on the Chase Sapphire Reserve can be redeemed for 1.5 cents each toward the cost of a travel purchase

Different people will have differing opinions here. I don't value the ability to redeem points for 1.5 cents each toward travel purchases because I get way more value transferring Ultimate rewards points to partners like World of Hyatt Others will have different feelings.

If you redeem at least 62,000 points per year through the Chase Travel portal, you can justify the cost difference between the two cards.

Do you spend a lot on travel?

The cards have a different return on travel purchases than on dining.

I value Ultimate rewards points at 1.7 cents each, so that would mean a return of either 3.4% or 5.1%. If you put a lot of money on the card, it could be worth it.

You can break even on the price difference between the two cards if you spend $9,100 annually on travel. You should only count spending on this card if you put it on your other cards. I spend a lot of my airfare and hotel spending on other cards.

There are two cards that are incredibly compelling. The Sapphire Reserve was the obvious winner for a long time, but the recent refresh may have changed that.

For the time being, I think it would be a good idea to apply for the Sapphire Reserve. You can always upgrade the card if you decide after a year that the preferred option is better for you.

Do you think the preferred or reserve is more valuable now?