Money Analysed

Is the Chase Sapphire Reserve Still Worth It?

Are you a Chase Sapphire Reserve cardholder? Then you may have heard about the recent changes made to the card’s benefits.

For those who are not familiar with the card, the Chase Sapphire Reserve is a premium credit card that offers a plethora of exclusive rewards and perks. The card has garnered a massive following in recent years, with thousands of people signing up for it every month.

In this article, we will address the changes made to the card’s benefits and evaluate whether it is still worth the annual fee.

Changes to the Chase Sapphire Reserve

The Chase Sapphire Reserve is a card that was originally introduced with a $450 annual fee back in 2016. The card quickly gained a reputation as the cream of the crop when it comes to travel rewards credit cards, with a massive bonus of 100,000 Chase Ultimate Rewards points after qualifying expenditures.

But like most credit cards, the card has evolved, and so have its benefits.

Annual fee increase

The biggest change on the cards’ benefits is an increase in annual fees from $450 to $550. This change brought a lot of debate and criticism from cardholders.

However, the increase in annual fees is justified by the new benefits that come along with it. The new annual fee will apply to all new cardholders and will take effect on January 12th, 2020.

If your account was open before that day, your annual fee will see an increase after your next renewal date that occurs after January 12th, 2020.

New benefits added

To justify the increase in annual fees, Chase introduced new benefits that might be beneficial to most cardholders. One of the most notable additions is Lyft Pink, a subscription service that gives cardholders perks such as discounts on rides, three complimentary bike or scooter rentals per month (where available), and priority airport pickups via the Lyft app.

This new benefit alone might make the increased annual fee worth it for those who frequently use the ride-hailing app. Another new bonus that comes with the increased fees is the DoorDash credits.

Cardholders will receive up to $60 in DoorDash credits in 2020 and another $60 in 2021. These credits can be used for food delivery orders placed through DoorDash.

Another new benefit includes increased earning rates for Lyft rides, with cardholders now earning 10x points per dollar spent. The Sapphire Reserve continues to offer 3x points per dollar spent on travel and dining purchases, which is still useful for frequent travelers.

Is the Chase Sapphire Reserve still worth it? With the increased annual fees came additional benefits, but does it still make sense to sign up for the Chase Sapphire Reserve?

The answer depends on a few factors such as the card value, net cost, and available alternatives. Calculating the card’s value

To determine the value of the Chase Sapphire Reserve card, you need to compare the costs of the card’s annual fee, usage, and rewards together.

In the past, the sign-up bonus of 100,000 points meant that the first year of the card offered a significant positive return on investment. However, with the introduction of new benefits and added fees, the value of the card has changed.

In simple terms, if the value of the card’s benefits in the first year is greater than their cost, it makes sense to sign up.

When the Chase Sapphire Reserve makes sense and when it does not

After the fees increased to $550, some may wonder whether the card is still worth it in the second year. In the second year, the value of the card’s benefits needs to outweigh the additional annual fees incurred.

For a frequent traveler who regularly uses ride-hailing services and orders food for delivery, the Chase Sapphire Reserve might be worth it. However, if you don’t travel much, the additional benefits might not be as valuable to you, especially if you don’t use them enough to justify the additional fees.

Are there better options? With the rise of premium credit cards, there is stiff competition in the market.

One premium credit card that is similar to the Chase Sapphire Reserve is the American Express Gold Card. The Amex Gold Card offers 4x points per dollar spent on food, and 3x points on flights booked directly with airlines or through Amex travel.

The card also has no foreign transaction fees and a $250 annual fee. Depending on your spending habits, the American Express Gold Card might be a better alternative to the Chase Sapphire Reserve.

Conclusion

The Chase Sapphire Reserve continues to offer significant benefits and rewards. The new benefits that come with the increased annual fee might be worth it for frequent travelers.

However, for those who are looking for a card with lesser fees and more rewards that fit their needs better, there are other alternatives that might suit your lifestyle and spending habits. At the end of the day, whether the Chase Sapphire Reserve is worth it or not depends on your spending habit, lifestyle, and financial goals.

Chase Sapphire Reserve is a premium credit card that offers several benefits and rewards for the frequent traveler. With the recent changes made to its benefits, some people may be wondering whether the card is still worth it.

In this article, we will discuss the current promotions and the expiration date and give an overview of the current benefits that come with the card.

Current Promotions and Expiration Date

Chase Sapphire Reserve currently has a few promotions that can save you money or earn you more points. Firstly, if you refer a friend for the Chase Sapphire Reserve card, both of you can earn up to 50,000 Chase Ultimate Rewards points.

The bonus points are worth around $500 in travel when redeemed through Chase’s travel portal. To qualify, you need to refer someone who gets approved and spends $4,000 within three months of account opening.

This promotion is valid through December 31st, 2021. Another promotion that Chase Sapphire Reserve offers is the Pay Yourself Back feature.

With this feature, cardholders can redeem Ultimate Rewards Points at a higher rate towards eligible purchases made at grocery stores, dining, and home improvement stores. This promotion is valid through September 30th, 2021.

Cardholders can earn up to 1.5 cents per point with this feature. Lastly, new Sapphire Reserve cardholders can earn 60,000 points after spending $4,000 on purchases in the first three months from account opening.

This bonus is worth around $600 when redeemed for travel through Chase’s own travel booking tool.

Overview of Current Benefits

The Chase Sapphire Reserve offers numerous benefits that can make it worthwhile for frequent travelers. Let’s take a closer look at some of these benefits:

1.

Travel Credit – The card offers an annual $300 travel credit, which can be used for various travel-related expenses such as airfare, hotels, car rentals, and more. 2.

Lounge Access – One of the most significant advantages of the card is its lounge access. Cardholders get a Priority Pass Select membership, which gives them access to over 1,300 airport lounges worldwide.

3. Earn Points – Cardholders earn 3x points on travel and dining purchases, and 1 point per dollar spent on all other purchases.

4. TSA PreCheck or Global Entry – The card reimburses the application fee for TSA PreCheck or Global Entry, saving cardholders money in the long run.

5. Lyft Pink – As mentioned before, cardholders receive a complimentary Lyft Pink membership, which offers multiple benefits such as 15% off Lyft rides, priority airport pickups, and more.

6. DoorDash Delivery Credits- Cardholders receive up to $60 in credits for DoorDash orders, which can offset the cost of food delivery.

7. Travel Insurance – The card offers an array of travel insurance coverages like car rental collision damage waiver insurance, trip cancellation/interruption insurance, travel accident insurance, and more.

Overall, the Chase Sapphire Reserve card comes with a bevy of benefits that can make it worthwhile for frequent travelers. However, these benefits come at a cost of an increased annual fee.

The card’s higher annual fees may be challenging to justify for those who do not use the offered benefits or those who do not travel as frequently.

Final Thoughts

Before signing up for the Chase Sapphire Reserve card, it is essential to consider your spending habits, travel frequency, and financial goals. If you travel frequently and use the card’s offered benefits often, the card may be worth the increased Annual Fee.

On the other hand, if you do not travel much, it may be better to consider a more cost-efficient credit card that fits your spending habits. Overall, the Chase Sapphire Reserve card is an ideal option for frequent travelers who seek exclusive travel benefits and a great rewards program.

In summary, the Chase Sapphire Reserve card is a premium credit card that offers numerous benefits for frequent travelers. With the recent increase in the annual fee, it’s essential to evaluate whether the card is still worth it.

We have discussed the recent changes made to the card’s benefits, including new additions like Lyft Pink and DoorDash credits and ongoing promotions such as referral bonuses and Pay Yourself Back feature. We have also provided an overview of the current benefits offered by the card which includes travel credit, lounge access, TSA PreCheck or Global Entry reimbursement, and more.

Ultimately, whether the Chase Sapphire Reserve card is worth it depends on your lifestyle, spending habits, and financial goals. However, for those who travel frequently and use the offered benefits often, the card can provide unparalleled value and rewards.

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