Chase Sapphire Preferred vs. Sapphire Reserve: Best Card To Sign Up For

In a previous article, we’ve compared the 3 major premium cards out from Chase, Citi and American Express, but we want to address a bigger question. What is the difference between the Chase Sapphire Reserve and the Chase Sapphire Preferred? Considering that the Chase Sapphire Reserve is basically the “Finished Product” of the Chase Sapphire Preferred, there’s no real use in keeping both card. Again, we’re not suggesting loyalty or superiority towards one card, it’s to your moral decision as to which card suits you in terms of worth; short term and long term.

Editor’s Note: Be sure to read my extensive review comparing the Chase Sapphire Reserve, Citi Prestige Card, and the American Express Platinum Card to learn more!

Chase Sapphire Reserve Card Summary:

• Apply Now
• Maximum Bonus: 100,000 UR Points
• Spending Requirement: You must spend $4,000 on purchases in the first 3 months from account opening
• Annual Fee: $450, not waived for the first year
• Bonus Worth: The 100K points alone is worth $1250 towards airfare/hotel.
• Expiration Date: No expiration
• Alternative Credit Card Bonuses (CSR):
  • Chase Freedom®
  • Platinum Card® from American Express
  • Citi Prestige® Card

Chase Sapphire Preferred Card Summary:

• Learn More
• Maximum Bonus: 50,000 bonus points + Additional 5,000 points
• Spending Requirement: You must spend $4,000 on purchases in the first 3 months from account opening, and add an authorized user (no annual fee) within the first 3 months and they make a purchase.
• Annual Fee: $0 introductory annual fee for the first year ($95 thereafter)
• Bonus Worth: The 50K points alone is worth $625 towards airfare/hotel.
• Expiration Date: No expiration
• Additional Advice: If you have the Chase Sapphire Preferred Card, we recommend combining it with another Ultimate Rewards-earning card, such as the no annual fee cash-back card Chase Freedom Card. This way, you can transfer the points you earn on the Chase Freedom to your Chase Sapphire Preferred Card account and redeem them for more than 1 cent per point. Since both cards are on the Ultimate Rewards platform, you can also combine the points instead of using two different rewards platforms. That’s an immediate 25% increase on the value of your points when used for travel. Since the Chase Freedom has no annual fee, it’s worth considering to squeeze out every dollar you can for your wallet.
• Alternative Credit Card Bonuses (CSP):
  • Starwood Preferred Guest® Credit Card
  • Citi® Hilton HHonors™ Reserve Card
  • Expedia®+ Voyager Card from Citi

Earnings & Benefits:

Starting out, you’ll notice the massive sign-up bonus for the Chase Sapphire Reserve topping at 100,000 UR Points, and on the other hand, the Chase Sapphire Preferred with 50,000 UR Points. Comparatively, the Preferred will naturally earn 2X the points on Dining and Travel purchases vs the Reserves 3X the points on Dining and Travel.

Going over the benefits, you’ll notice that the Sapphire Preferred will offer you CDW on rentals, Trip insurance, no foreign transaction fees, points worth at 1.25 cents towards travel with a 1:1 point transfer ratio. The Reserve will offer you all the necessary benefits from the CSP with the added benefit of Priority Pass Select Lounge Access, Special Auto rental discounts, $100 Global Entry credit, and and higher point worth of 1.5 cent towards travel.

Editor’s Note: Without a doubt, the Chase Sapphire Reserve proves to be the better card and further reiterates that this is Chase Sapphire’s “Finished Product,” but even if the Reserve has the Preferred Stacked on just about every aspect; is this card really justifiable?

Short Term Value:

Keep in mind that the Preferred’s annual fee is waived for the first year, afterwards $95. The Reserve has a heft $450 annual fee that is not waived for the first year, but with the added benefit of $300 in travel credit each calendar year.  Reiterating the point worth of 1.5 cents each per UR Point, and assuming that you will get travel credit twice in the first year with your Reserve, your first year value will look something like this:

• Sapphire Reserve:  $1,650 ($1,500 – $450 + $600)
• Sapphire Preferred: $750 (50K * .015)

Editor’s Note: It’s a given that the Sapphire Reserve has a much better first year value vs the Sapphire Preferred. Keep in mind, that’s not even adding in the extra benefits and earnings.

Long Term Value:

Now, it’s a given that there’s a substantial factor in whether or not the Reserve or Preferred reigns as a long term card and to each it’s own, I should say the least, given that the Reserve comes in with a whopping $450 annual fee compared to the considerably less $95 Preferred Annual cost.

BUT, adding in the $300 Travel Credit; if you travel enough to maximize the travel credit, then your annual fee would be a do-able $150 vs. $95. Without a doubt, if you can expand on this cards benefits; 1.5 point value, 3x earning, lounge access, etc., the Reserve reigns superior. Again, this all depends on your moral decisions in contemplating the worth of each card.

Keep in mind that there is a $75 additional authorized user in comparison to the Sapphire Preferred in which you’ll have a waived first year AF, and no additional fee for authorized users. Also, the Fees can be covered by the $300 annual travel credit, but, I strongly urge you to not look at the $300 travel credit as $300 in cash.

Conclusion:

This has been a much awaited review for us to write for quite some time and now that the Sapphire Preferred’s long lost big brother has joined the game, it’s phenomenal as to how this card could shape up the card industry’s standards for good. Now, evidently the biggest question is that if the $450 Annual Fee is justified and to answer that, the unveiling answer is that it just depends.

The Chase Sapphire Reserve just dominates all areas of the Chase Sapphire Preferred concluding that this is an upstream product from the Preferred, but you should use your moral decisions as to if you can maximize and expand on the Reserves benefits because $450 vs a $95 annual fee is quite the gap, but luckily, there is a $300 travel credit benefit worthy of reaping for a $150 vs $95 Annual Fee (Of course, if you can maximize on the credit).

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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