Chase Sapphire Reserve vs Preferred: Which Card is Right for You?
Chase Sapphire Reserve vs Preferred

Chase Sapphire Reserve vs Preferred: Which Card is Right for You?

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The Chase Sapphire Reserve and Chase Sapphire Preferred Card have become the gold standard in the points and miles world, and for good reason. They’re some of the best travel cards out there. And they’re some of the first cards we recommend for travelers getting started with earning points and miles.

They may earn the same points and share a name, but there are major differences between the Chase Sapphire Reserve vs Preferred cards that leave travelers asking: “Which Sapphire card is right for me?”

That’s a critical question: Chase only allows you to hold either the Sapphire Reserve or Sapphire Preferred card – not both. After a recent update with new benefits on both cards, it’s a great time to dive into both of them.

We’ll break down all of the benefits you get on each card and pick a winner in each category to help you decide which is right for your travel goals and your personal finances.
 

chase sapphire preferred card
 

Click Here to learn more about the Chase Sapphire Preferred Card. 
 

chase sapphire reserve
 

Click Here to learn more about the Chase Sapphire Reserve. 

 

Welcome Bonus Offer

The Preferred Card currently offers a welcome bonus of 100,000 Chase Ultimate Rewards points after spending $4,000 on purchases in the first three months of card membership.

The Reserve currently offers a sign-up bonus offer of 60,000 Chase Ultimate Rewards points after spending $4,000 on purchases in the first three months of card membership.

This one is easy: The Chase Sapphire Preferred Card offers 40,000 more points for the exact same spending requirement. At a minimum, that 100,000-point bonus is worth at least $1,250 toward travel.

While there are many other factors to consider when comparing these two cards, the Sapphire Preferred is the clear winner in this category. Not only is it a better offer than the Chase Sapphire Reserve – it might be the best credit card sign-up bonus we have ever seen, period.

Winner: The Chase Sapphire Preferred Card
 

chase sapphire preferred

 

Annual Fee

The Preferred Card has an annual fee of $95, and that’s not waived in the first year. But the Reserve card is much steeper. After a recent price hike, the Chase Sapphire Reserve now costs $550 a year for all new applicants.

That alone could make the decision easy for you. But with top travel credit cards, you get what you pay for. There are plenty of extra perks and benefits on the Sapphire Reserve card that offset that cost. And it starts with a $300 annual travel credit.

Just for holding the card and paying the annual fee, you will receive a $300 credit each year that will automatically cover any travel expense: flights, hotels, Airbnb, Uber, Lyft, cruises, and so on. Considering how easy it is to use that credit, you can think of the Chase Sapphire Reserve’s annual fee as more like $250.

In fact, Chase has made it even easier to use throughout the pandemic. Through December 2021, this $300 credit can be used towards purchases at grocery stores and gas stations in addition to travel expenses. 

While there are other benefits offered that are worth considering, the annual fee comparison between these cards should be looked at as $95 on the Sapphire Preferred and $250 on the Sapphire Reserve. Even then, there’s a clear winner.

Winner: The Chase Sapphire Preferred Card.
 

chase sapphire preferred

 

Authorized User Fees

The Preferred Card offers the primary account holder to add an unlimited amount of authorized users for no additional cost. The Reserve, on the other hand, charges an additional $75 for each additional authorized user you add to the account.

That means if you plan to add a spouse or a significant other to your account, you can expect to pay $95 out of pocket each year with the Sapphire Preferred and $625 ($550 annual fee + the authorized user fee of $75) for the Sapphire Reserve.

The $75 fee for adding a user to the Sapphire Reserve will provide the user with their own Priority Pass Select lounge membership, meaning they can get into lounges and bring additional guests on their own. If an authorized user often travels without the primary cardholder, this fee can pay for itself quickly.

If not, the Sapphire Preferred might be a better option.

Winner: The Chase Sapphire Preferred Card.
 

chase sapphire preferred

 

Points Redemption Value

Though the Chase Ultimate Rewards points you earn from both cards are the same, they’re worth different amounts when you use them to book flights, hotels, and other expenses through the Chase travel portal.

If you hold the Chase Sapphire Preferred Card, you can redeem your points for 1.25 cents each towards travel booked through the Chase portal. But with the Chase Sapphire Reserve, you can redeem your points for 1.5 cents each towards travel booked through the Chase portal.

That means if you use the Chase travel portal to book a flight, hotel or other travel, your points will be worth either 25% or 50% more, depending on which version of the card you have.

Here’s an example. We recently found flights from Minneapolis-St. Paul (MSP) to Amsterdam (AMS) for $483 roundtrip. The screenshot below was taken from Google Flights, our favorite flight search engine.
 

chase sapphire reserve vs preferred 

Once you find the flight that will work, you can simply head to the Chase Ultimate Rewards travel portal within your Chase online account. The portal is powered by Expedia (though that is soon changing), so you should be able to pull up the same cash rate in the portal as you did in Google Flights.

As you can see from the screenshot below, this flight can be booked for 38,586 Ultimate Rewards points if you hold the Sapphire Preferred card. That’s because your points will always be worth 1.25 cents each when booking flights this way. To do the math, take the cost of the ticket divided by .0125. In our example, $482.33 / 0.0125 = 38,586 points.
 

chase sapphire reserve vs preferred 

But if you’ve got the Sapphire Reserve card, this same flight can be booked for 32,155 Ultimate Rewards points. That’s because your points will always be worth 1.5 cents each.
 

chase sapphire reserve vs preferred 

There are ways you can get far more out of these points by transferring them to Chase’s stable of airline and hotel partners. And in that respect, these two cards are equal.

But there’s a clear winner when you’re redeeming points directly through Chase.

Winner: The Chase Sapphire Reserve.
 

chase sapphire reserve

 

Annual Credits

Just for holding the Chase Sapphire Reserve and paying the $550 annual fee, you will receive an annual $300 travel credit. This can be used for any charge that codes as travel (think flights, hotels, cruises, Uber, Lyft, taxis, parking, etc).

You don’t have to do anything other than spend on travel to take advantage of the credit. Chase will automatically reimburse the charges in the form of statement credits up to the maximum of $300.

As discussed above, if you spend at least $300 on travel in a year, this credit effectively makes the annual fee on the Sapphire Reserve card $250 ($550 annual fee minus the $300 annual travel credit). If, however, you don’t spend at least $300 on travel each year, there’s really no reason to get the Reserve card in the first place.

Next, thanks to a new partnership with Peloton, Chase Sapphire Reserve cardholders get $120 total in statement credits toward Peloton memberships through Dec. 31, 2021.
 

chase sapphire reserve vs preferred peloton credits 

Also, through the end of 2021, Sapphire Reserve cardholders will get a $60 per year annual credit for DoorDash. Just charge your DoorDash order to your Reserve card, and you’ll automatically get reimbursed up to $60 each year.

The Preferred Card certainly doesn’t offer as much on the annual credit side of things, but starting on Aug. 16, 2021, the card now provides two new credits. The best part? These were added without increasing the card’s $95 annual fee.

First and foremost, Sapphire Preferred cardholders will earn up to $50 in statement credits each year on their account anniversary for hotel stays purchased through the Chase Ultimate Rewards travel portal. If you already hold the Sapphire Preferred, you won’t have access to this new benefit until your next annual fee payment is due.
 

chase sapphire reserve vs preferred hotel credit 

Like the Reserve card, Chase Sapphire Preferred cardholders will also get an annual credit for Peloton through the end of 2021. However, you’ll only get $60 instead of the $120 credit offered on the Reserve.

Winner: The Chase Sapphire Reserve.
 

chase sapphire reserve

 

Earning Ultimate Rewards Points

Both the Sapphire Preferred and Sapphire Reserve cards earn bonus points for all spending on travel and dining at restaurants.

If you hold the Sapphire Preferred card, you will earn 3x points per dollar spent on dining, including eligible delivery services, 3x points per dollar spent on online grocery purchases (excluding Target, Walmart, and wholesale clubs), and 3x points per dollar spent on select streaming services.

You will also earn 5x total points on travel purchased through Chase Ultimate Rewards, excluding hotel purchases that qualify for the $50 Anniversary Hotel Credit, and 2x points per dollar spent on all other travel purchases.

And it gets better if you’re riding in a Lyft. Through March 2022, Chase Sapphire Preferred cardholders will earn 5x points per dollar on Lyft rides – including scooters and bike rentals.

Finally, Chase Sapphire Preferred cardholders now earn a 10% anniversary points bonus every year. At the end of every year, Chase will tally up all your spending throughout the year and give you an extra 10% bonus. It’s based on the amount you spent regardless of any bonus categories: Spending $10,000 means you’ll get an extra 1,000 points.

If you hold the Sapphire Reserve Card, you will earn 3x points per dollar spent on dining, including eligible delivery services. You will also earn 5x total points on air travel and 10x total points on hotels and car rentals when you purchase travel through Chase Ultimate Rewards, and 3x points per dollar spent on all other travel purchases.

Both cards will earn 1x point per dollar spent on all other categories.

Winner: The Chase Sapphire Preferred Card.
 

chase sapphire preferred

 

Airport Lounge Access

The Sapphire Reserve comes with a complimentary Priority Pass Lounge membership. This is the gateway for you (and up to two guests) to hang out in hundreds of airport lounges all over the world. Additionally, as a part of the membership, you will even have access to a growing list of airport restaurants where you can dine for free during your travels.

The Preferred card does not offer any sort of airport lounge access.

Winner: The Chase Sapphire Reserve.
 

chase sapphire reserve

 

Global Entry or TSA PreCheck Application Credit

If you hold the Sapphire Reserve, you will receive up to $100 in credit once every four years to cover for the cost of either Global Entry or TSA PreCheck.

Membership in both programs lasts for five years, so you’re set with this credit. And since Global Entry includes TSA PreCheck, it’s the obvious choice if you plan to do any international travel. See our guide on how to enroll in Global Entry from start to finish.

The Preferred card doesn’t offer a credit for either Global Entry or TSA PreCheck.

Winner: The Chase Sapphire Reserve.
 

chase sapphire reserve
 

 

Other Perks

There are some smaller perks worth considering on both of these cards. And as you’ll see, there’s plenty of overlap.

For starters, both cards can get you two free years of DashPass, the membership for food delivery service DoorDash. It gets you lower service fees and free delivery on all orders of $12 or more. Read our guide to enroll for DashPass with your Chase card.

Both the Sapphire Reserve and Sapphire Preferred cards will waive foreign transaction fees, which makes them an excellent option for international travel.

And Sapphire Reserve cardholders will get a free Lyft Pink membership. That gets you 15% off all rides, priority airport pickups, and a more generous ride cancellation policy. It’s not an earth-shattering benefit – but it’s worth noting.

And it gives the Reserve a slight edge in this category.

Winner: Chase Sapphire Reserve.

 

chase sapphire reserve

 

Rental Car Insurance Coverage

Both versions of the Sapphire card offer some of the best car rental coverage you will find from a credit card.

Let’s go back to basics for a bit. There are two categories of insurance coverage when it comes to rental cars: primary and secondary. The vast majority of travel rewards credit cards offer only secondary coverage on your rental if you pay with the card. Secondary coverage typically comes with a deductible and it only kicks in if you don’t have your own personal car insurance policy. It will likely not cover the entire loss of a vehicle, either.

Primary insurance, on the other hand, will cover all damage from collision or theft of most rental car – and that’s what you get with both Sapphire cards.

If you waive the car rental company’s coverage when renting, these benefits will apply if your vehicle is damaged, lost or stolen and you paid with a card offering primary insurance. Both cards will provide coverage for the cardholder and any additional drivers permitted on the rental agreement.

The only difference in the rental car coverage offered by the two cards is the amount in which each will cover. The Sapphire Preferred will cover up to the actual cash value of the rental car for rental periods that do not exceed 31 consecutive days. The Sapphire Reserve will cover up to $75,000 for rental periods that do not exceed 31 consecutive days.

That means if there is damage above and beyond the cost of the rental car, the Sapphire Reserve will provide a bit more coverage, assuming the rental car is not valued above $75,000.

Read More: All About the Chase Sapphire Rental Car Insurance Benefit

Winner: The Chase Sapphire Reserve.  
 

chase sapphire reserve

 

Baggage Delay & Lost Luggage Coverage

When it comes to credit cards covering baggage delays and/or lost luggage, you will be hard-pressed to find more bang for your buck than either of these cards.

With the Chase Sapphire Preferred card only charging an annual fee of $95, it’s the clear winner in this category as both cards provide identical coverage.

If you check your bags and they’re delayed more than six hours, both cards can reimburse you up to $100 per day for up to five days. This coverage is meant to provide reimbursement for essential items like toiletries, clothing, and cell phone charging cables, for example.

Additionally, the coverage will cover the primary cardholder, the cardholder’s spouse or domestic partner, and any immediate family members.

For more information on the Preferred card’s baggage delay benefit, visit the following link on Chase’s website.

Winner: The Chase Sapphire Preferred Card

 

chase sapphire preferred

 

Trip Delay & Cancelation Coverage

The Chase Sapphire Reserve and Preferred cards will reimburse you for expenses you incur due to a delayed or canceled flight, train, bus, or other means of travel. And that reimbursement can be used for costs like meals, lodging, toiletries, etc. incurred because of the delay, and the delay must take place away from the cardholder’s primary city of residence.

The Sapphire Reserve card will reimburse you for any delay lasting six hours or more, while the Sapphire Preferred will reimburse you for delays lasting 12 hours or more. Cardholders will be covered along with their spouse or domestic partner and any dependent children under the age of 22 for up to $500 for each purchased ticket.

The kicker here is that the trip must have been at least partially paid for with your Chase Sapphire card (or with Chase Ultimate Rewards points from the card).

So while both cards offer the same coverage, Sapphire Reserve cardholders will be able to take advantage of it after a six-hour delay while Preferred cardholders are only eligible after a delay of 12 hours or more.

Winner: The Chase Sapphire Reserve.  
 

chase sapphire reserve

 

Medical Evacuation & Travel Accident Coverage

You always hope you never need Medical Evacuation & Travel Accident coverage. But if you ever need it, it’s invaluable.

Both cards will provide coverage for accidental death or dismemberment, or a combined loss of speech, sight or hearing, experienced on a covered trip. Benefits are available when some portion of a covered trip has been purchased with either card or with Ultimate Rewards points earned on either card.

The difference comes in the amount of coverage each card provides. The Preferred card will provide a benefit amount for the loss of life up to $500,000 while the Sapphire Reserve card will provide benefit for loss of life up to $1,000,000.

Additionally, only the Sapphire Reserve card will provide coverage for a medical evacuation. If you or a member of your immediate family are injured or become sick during a trip far from home that results in an emergency evacuation, you can be covered for medical services and transportation up to $100,000.

Winner: The Chase Sapphire Reserve.
 

chase sapphire reserve
 

Chase Sapphire Reserve vs Preferred: Which Wins?

By the numbers, the Sapphire Reserve wins eight categories to the Sapphire Preferred Card’s five.

But everybody can – and should – weigh these categories differently. Some of these categories could make the Chase Sapphire Reserve a no-brainer to one person seeking lounge access or a Global Entry. Those same benefits might be meaningless to another person.

But there are some key points to keep in mind.

While the upfront cost of the Reserve card is much higher with a $550 annual fee, the effective annual fee is only $250 after factoring in the annual travel credit. While still steep for many travelers, that’s much more palatable than the initial sticker shock. And some of the card’s other perks could help you outweigh that cost altogether.

But because of the initial welcome offer bonus of 100,000 points on the Preferred compared to only 60,000 on the Preferred, we think it almost always makes more sense to start with the Preferred. You can always upgrade your account to the Reserve later if you want. And if you do, you will have even more points that will ultimately be worth more.

 

Bottom Line

The $550 upfront annual fee on the Chase Sapphire Reserve card is not for everybody. If you can’t stomach this fee, the Preferred card is an excellent option.

But we encourage you to always do the math before ruling out credit cards with a high annual fee. If you play your cards right, you can still come out way ahead on your annual fee.

 

Editorial Disclaimer: Opinions expressed here are the author’s alone, not those of any bank, credit card issuer, airlines or hotel chain, and have not been reviewed, approved or otherwise endorsed by any of these entities.

Disclaimer: The responses below are not provided or commissioned by the bank advertiser. Responses have not been reviewed, approved or otherwise endorsed by the bank advertiser. It is not the bank advertiser’s responsibility to ensure all posts and/or questions are answered.

4 Responses

  • Which airlines are the Chase Sapphire Reserve and Preferred cards good for? I apologize in advance as it’s probably spelled out somewhere, but I cannot find

  • I currently have the chase Sapphire Reserve card but am thinking of dropping it and getting the Preferred card. Any recommendations on how to do it and can I get the 80k miles bonus on the preferred?

    • Hey Kevin, as long as you haven’t earned the bonus on the card within the past 48 months you should be eligible to earn the 80k on the Reserve. I would suggest calling Chase and converting your Reserve to one of the Freedom cards. This will keep your points in tact. You can then apply for the Preferred Card.

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