There's no denying the *chase sapphire reserve* ranks near the top of all travel rewards credit cards, with great perks like airport lounge access and a big-time travel credit. But paying an annual fee of $550 upfront isn't for everyone … which is why we think the *chase sapphire preferred* shines.

Both cards offer similar welcome bonuses of 60,000 points after spending $4,000 in the first three months. But get this: for a limited time, you'll get up to $300 in statement credits for purchases made through Chase Travel℠ when you choose the Sapphire Preferred. And the Sapphire Preferred Card costs just $95 a year. That's right: A better bonus … for a fraction of the price. 

That alone makes it a solid option for any traveler looking for a new travel credit card. But from its excellent built-in travel protections to some other unique benefits, there are a few other defining features of the Preferred Card.  

Here are five reasons why you might want to go for the Chase Sapphire Preferred instead of the Chase Sapphire Reserve.

 

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Chase Sapphire Preferred vs Reserve Overview

The *chase sapphire reserve* and *chase sapphire preferred* both come loaded with valuable perks and bonus spending categories to earn Chase Ultimate Reward points.

There's no question that the Reserve is clearly superior when it comes to travel benefits – but the Preferred is still a powerful travel card that will only cost you $95 a year to keep in your wallet.

Before we dive in and make a case for why we advise taking a look at the Chase Sapphire Preferred before you decide to jump on the Reserve bandwagon, let's take a quick look at the differences between the two Sapphire cards.

 

Chase Sapphire PreferredChase Sapphire Reserve
Welcome Offerbonus_miles_fullbonus_miles_full
Annual Feeannual_feesannual_fees
Authorized User FeesNone$75 for each additional cardholder
Point Value Redeeming Through Chase Portal1.25 cents per point1.5 cents per point
Annual Travel Credit$0$300
Points Earned On Travel & Dining Expenses3x per dollar spent on dining, online grocery orders, and streaming services. 2x per dollar on travel3x per dollar spent on dining and travel
Credit for TSA PreCheck, Global Entry, or NEXUSNoneYes, available once every four years for the primary cardholder
Priority Pass Select Lounge MembershipNoneYes, and both primary cardholders and authorized users can bring up to two guests
Primary Car Rental CoverageYesYes
Foreign Transaction FeesNoneNone
Trip Delay Reimbursement$500 per person for delays lasting 12 hours or more$500 per person for delays lasting six hours or more
Travel Accident Insurance$500,000 per person$1 million per person
Lost Luggage Insurance$3,000 per person per trip$3,000 per person per trip

 

Alright, give us a chance to explain why the Chase Sapphire Preferred could be the better investment for you.

 

Get a Big Welcome Bonus

If you’re applying for a new credit card, earning a big stash of points to kickstart your travels is a nice … well, it's a nice bonus. Let’s compare what you can earn with both cards:

That's right: The cheaper Chase Sapphire Preferred currently comes with a more valuable bonus. 

If you're hoping to use your points to book travel through Chase Travel℠, the Reserve Card makes your points a little more valuable. When used this way, points are worth 1.25 cents each with the Sapphire Preferred and 1.5 cents each with the Reserve. This means the 60,000-point bonus that comes with both cards is worth between $750 and $900 towards travel … depending on which card you choose.

But you can likely do even better than that by leveraging Chase's slew of transfer partners. Sending your points (including all these welcome bonus points) to partner airlines or hotels is the best way to maximize the value of either bonus. And neither card has an edge when it comes to transferring to airlines or hotel chains: They transfer on a 1:1 basis to every partner, no matter which card you have. 

But what makes the Sapphire Preferred's bonus best, is the added $300 travel credit. With this limited-time offer, you get up to $300 in statement credits for Chase Travel purchases. Add that on top of the 60,000 bonus points and the Sapphire Preferred's bonus is worth more than $1,000 towards travel … easily making the better offer of the two. 

Related reading: A Guide to Earning & Burning Chase Ultimate Rewards in 2023 and Beyond

 

Pay a Lower Annual Fee

No one wants to spend a bunch of money on annual fees. And while we always recommend doing the math to calculate if the benefits outweigh the cost of a big annual fee, there’s no doubt the allure of paying less in annual fees is strong.

With the Sapphire Preferred, you're in luck. One of the biggest strengths of this card is its modest annual fee of just $95. Meanwhile, the Sapphire Reserve costs a whopping $550 per year. That means you'll pay $455 more upfront each year just to hold the Chase Sapphire Reserve. That can be hard to stomach.

Of course, you can easily offset a good chunk of the Sapphire Reserve's annual fee with its annual $300 travel credit. This credit automatically kicks in for up to $300 in travel expenses each year – from flights to hotels to Uber rides, and even parking fees. That makes the annual fee more palatable than it seems at first glance – though perhaps not enough for everyone to justify paying that high initial price.

Still, the Chase Sapphire Preferred is far cheaper at just $95 a year– and again, it comes with an even better bonus offer. Compared to paying the Chase Sapphire Reserve’s $550 fee every year, it’s a steal.

 

 

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You Can Always Upgrade Later

Maybe you don't have to decide between these two cards at all.

Paying $550 for a credit card – even one with premium travel perks – is an admittedly tough sell to those just getting started with points and miles. But maybe it won't seem so egregious later on down the line. While Chase won't let you earn a sign-up bonus on both cards within a 48-month window, that doesn't mean you can't have both cards in that timeframe.

Simply start by opening the *chase sapphire preferred* and then when year two rolls around, you can upgrade to the Chase Sapphire Reserve. This will allow you to keep all your points – while getting all the extra perks that come with the Reserve and the ability to redeem your points for even greater value.

 

sapphire preferred & reserve card with a wallet and passport

 

Let's say you open the Chase Sapphire Preferred Card this year, paying its $95 annual fee and spending $4,000 within three months to earn that 60,000-point bonus. By upgrading your card to the Reserve down the line, those 60,000 points you earned would then be worth at least $900, as each point on the Reserve card is worth slightly more at 1.5 cents apiece when booking flights, hotels, and other expenses through Chase Travel℠.

So as long as you are okay holding the Preferred for a year, you'll end up with a more valuable stash of points in year two. And in the meantime, you'd be able to take advantage of the up to $300 in statement credits for Chase Travel purchases offered with Sapphire Preferred's welcome bonus. It's a win, win! 

 

How to Upgrade from the Preferred to the Reserve

If you eventually decide to upgrade your Chase Sapphire Preferred to the Sapphire Reserve, the process couldn't be easier.

After you have held the Sapphire Preferred Card for at least a year, simply call the number on the back of your card and let the Chase customer service representative know you'd like to upgrade your account to the Sapphire Reserve. Just know that you will need an available credit line of at least $10,000 after having the Preferred for one year in order to upgrade.

The representative will likely ask you a few questions to verify your identity and a few other pieces of information to ensure you are eligible for an upgrade to the Sapphire Reserve. From there, the agent will likely read through a list of disclosures that you will need to agree to before you can complete the upgrade process.

The entire process should only take a few minutes. And given the higher credit scores needed to get approved for the Chase Sapphire Reserve, going this upgrade route might be a safer option. And it shouldn't even involve a credit pull, as you're simply doing a credit card product change.

Still torn? Read our complete guide comparing the Chase Sapphire Reserve vs Preferred cards

 

Transfer Partner Equality

There’s no denying that the Chase Sapphire Reserve comes with some worthwhile benefits. And one of the biggest benefits is the additional value you get when booking directly through Chase Travel℠.

However, the best way to squeeze more value out of your Chase points is by transferring them to more than a dozen different airline and hotel partners. And in the Chase Sapphire Preferred vs Reserve battle, neither card has the edge over the other here.

ProgramTypeTransfer RatioTransfer Time
Aer LingusAirline1:1Instant
Air Canada AeroplanAirline1:1Instant
Air France/KLMAirline1:1Instant
British AirwaysAirline1:1Instant
EmiratesAirline1:1Instant
Iberia PlusAirline1:1Instant
JetBlueAirline1:1Instant
Singapore AirAirline1:112-24 hours
Southwest AirlinesAirline1:1Instant
United AirlinesAirline1:1Instant
Virgin AtlanticAirline1:1Instant
World of HyattHotel1:1Instant
IHGHotel1:11 day
Marriott RewardsHotel1:12 days

 

No matter if you have the Chase Sapphire Preferred or Reserve, your points transfer at the same 1:1 ratio to every Chase transfer partner. When you consider the additional upfront cost of the Reserve card, the value of the far cheaper Chase Sapphire Preferred is undeniable.

The ability to transfer points is what makes Chase Ultimate Rewards so flexible and valuable. It’s one of the keys to unlocking some of the most valuable redemptions like business and first-class flights.

Read more: Great Ways to Use a Big Bonus from the Chase Sapphire Preferred

 

Chase Sapphire Travel Protections

Both the Chase Sapphire Preferred and Reserve cards offer some of the best travel insurance of any credit cards out there.

But the differences between the coverage each of these cards offer is subtle. And in our opinion, the coverage offered by the Sapphire Preferred should suit the majority of travelers.

 

Rental Car Insurance

When it comes to rental car coverage, the only difference in the rental car coverage offered by the two cards is the maximum amount each card 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. However, what is offered by the Preferred card should cover the vast majority of rental insurance situations.

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

 

Chase Sapphire Preferred vs Reserve Insurance

 

Baggage Delay Insurance and Lost Luggage Reimbursement

When it comes to baggage delays and/or lost luggage, both cards provide the same amount of coverage. If you check your bags and they’re delayed more than six hours, both will reimburse you up to $100 per day for up to five days.

 

Chase Sapphire Preferred vs Reserve Baggage Delay Insurance

 

This coverage is meant to provide reimbursement for essential items like toiletries, clothing, and cell phone charging cables.

 

Trip Cancellation and Delay Insurance

Both cards will also reimburse you for expenses incurred 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 – or those requiring an overnight stay.

 

Chase Sapphire Preferred vs Reserve Trip Delay Insurance

 

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 you will get coverage for both cards, the Sapphire Preferred only kicks in after 12 hours. Depending on your risk tolerance, this is a potentially small difference considering the annual fee difference.

Read more: A Firsthand Experience With Chase's Trip Delay Insurance

 

Travel Accident Insurance

Finally, 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 Chase Sapphire Preferred will provide a benefit amount for the loss of life up to $500,000 while the Sapphire Reserve card will provide a benefit for loss of life up to $1,000,000. While you always hope you never need travel accident coverage it can be invaluable if something goes wrong. And a coverage amount of $500,000 is second to none on a card with an annual fee of only $95.

 

Chase Sapphire Preferred Vs Reserve Travel Accident Insurance

 

It's worth noting that the Sapphire Reserve card will provide coverage for a medical evacuation while the Sapphire Preferred will not. 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.

So at the end of the day, both cards offer fantastic coverage. But the coverage offered by the lower annual fee Sapphire Preferred should be more than adequate for the vast majority of travelers.

 

Bottom Line

Chase's Sapphire cards are some of the best out there for travelers – and there's no denying the Chase Sapphire Reserve is the top dog in terms of benefits. But that doesn’t mean it’s for everyone.

The Chase Sapphire Preferred card is a go-to for many travelers. In fact, we think the Sapphire Preferred bests the Reserve card in a lot of ways … at least to start. 

 

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