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The Chase Sapphire Reserve® has been an extraordinarily popular credit card since it was first introduced in 2016. With the ability to earn at least 3 points for every dollar you spend on both travel and dining purchases, along with extra travel perks like airport lounge access, it’s become a popular go-to credit card.

However, the card isn’t cheap. At the start of 2020, Chase raised the annual fee from $450 to $550 a year, a 22% increase. While the issuer has been offering a $100 credit to existing Sapphire Reserve card holders during the pandemic, new card holders still get charged the full freight.

Regardless, at either $450 or $550, it’s fair to wonder if the annual fee is worth paying. Let’s take a look at the pros and cons of the card to see if the Sapphire Reserve should have a place in your purse or wallet.

Original features of the Sapphire Reserve

The Chase Sapphire Reserve originally launched with a rich suite of benefits. The list starts with two prime bonus categories: 3 points for every dollar you spend on a very wide range of both travel and dining purchases. And in 2021, the card added the opportunity to earn even more points if you book through Chase Ultimate Rewards, where you’ll earn 10 total points on dining or hotel stays and car rentals and 5 total points on flights.

The card also features a $300 annual travel credit that works on those same travel purchases, a Priority Pass Select membership that gives you access to over 1,300 airport lounges around the world and a credit of up to $100 when you apply for either the Global Entry or TSA PreCheck expedited security programs.

The Sapphire Reserve also comes with a sign-up bonus for new card holders. If you’re approved for the card, right now you’ll earn 60,000 bonus points when you spend $4,000 in the first three months after you open the account.

Points earned with the Sapphire Reserve can be redeemed for travel through Chase Ultimate Rewards at a rate of 1.5 cents per point, or transferred to any of Chase’s 14 airline and hotel partners for potentially even more value. Even if you just redeem the bonus points at 1.5 cents per point, that makes them worth $900 in travel, which on its own more than offsets the $550 annual fee for the first year.

Related: Get 60,000 bonus points with the Chase Sapphire Reserve credit card.

Additional Chase Sapphire Reserve perks

Of course, as the coronavirus pandemic wreaked havoc on airlines and hotels over the last year, many of the travel perks of the Chase Sapphire Reserve went unused by card holders. Fortunately, Chase has been proactively adding limited-time benefits that you can use at home, on top of several other new features that were added to the card in January.

When it comes to earning points, the card added a new bonus category early last year. Card holders now earn 10 points per dollar on Lyft rides through March 2025, up from the normal 3 points earned for travel purchases (which includes ride-shares).

The Sapphire Reserve also has two benefits linked to the DoorDash food delivery service. Card holders receive $5 in monthly DoorDash credits through the end of 2024, along with at least 12 months of complimentary DashPass membership when you activate it by Dec. 31, 2024. DashPass offers free delivery fees and reduced service fees at select restaurants, and normally costs $9.99 per month.

Related: Earn more rewards on your groceries with these credit cards.

You can get both bonus points and credits for Peloton purchases with the Chase Sapphire Reserve card.

All these perks come on top of a new Sapphire Reserve feature that Chase launched last May. The card’s “Pay Yourself Back” tool allows card holders to redeem points for purchases in categories other than travel.

Chase Sapphire Reserve card holders currently get 1.5 cents per point on these “Pay Yourself Back” redemptions, which is identical to the value you get when using points for travel via Chase’s travel portal. That’s a solid return for your points and an option worth considering if you aren’t using your rewards on flights or hotels right now.

Value of the Sapphire Reserve’s benefits

Let’s be frank: $550 is a lot to pay for a credit card. The 60,000-point sign-up bonus is worth $900 in travel (and possibly more), which makes the first year a no-brainer. But what about the second year and beyond? Some people will be able to take advantage of all the card’s features, but not everyone. And while the Chase Sapphire Reserve is a popular card, it’s not worth it if you can’t use its perks.

The $300 travel credit is relatively easy to utilize. It covers not just airfare, hotel rooms, car rentals and the like, but also daily travel expenses such as transit costs, tolls, taxis, ride-shares and even parking. So even if you’re not traveling, it’s highly likely you’ll spend $300 on travel at home. So, assuming you can use the entire $300 credit, that brings the effective annual fee on the Sapphire Reserve down from $550 to $250, a significant drop.

The question then is whether the rest of the card’s features and benefits are worth $250 a year. If you’re using DoorDash a lot more now, that’s another $60 in value annually through 2024. The free delivery fees that are part of the DashPass membership are a little harder to calculate, but if you normally use DoorDash, you’ll see a few bucks in savings there as well.

Related: Are you using the right credit card when ordering food for delivery?

If you have DoorDash in your area and can use it, the $60 in credits in 2021 can help make the Sapphire Reserve annual fee worthwhile.

Since membership in Global Entry or TSA PreCheck is good for five years, the $100 application fee credit only comes to $20 a year once you prorate that $100 over five years. Also, many other credit cards feature the same Global Entry/TSA PreCheck rebate, so it’s not as useful to you if you already have the same $100 credit with another card (though keep in mind you can use this credit for the application fee of a friend or family member if you already have your own Global Entry or TSA PreCheck membership).

It’s impossible to put a precise dollar amount on the Priority Pass Select airport lounge membership, as you might use this benefit once a year or 50 times a year. If you paid for these lounge visits individually using a “pay as you go” Priority Pass membership, they’d cost you $32 a visit plus $99 for the year (or you could pay for a $299 membership that includes the first 10 visits).

But at those prices, you’re almost certainly better off just getting the Sapphire Reserve or another credit card with Priority Pass if you want lounge access instead of paying for a membership.

Is the Chase Sapphire Reserve a good credit card for you?

Add all of the above benefits together and if you use each of them at least a few times a year, you’re likely getting your $250 worth. But let’s say you only use half of them, meaning you only get $125 in value from the card’s perks. How much would you need to spend on the card in a year to make up that remaining $125 in extra points?

CNN Underscored’s benchmark credit card, the Citi® Double Cash Card, has no annual fee and earns 2% cash back on everything you buy — 1% when you make a purchase, and another 1% when you pay your statement. In comparison, each point earned with the Chase Sapphire Reserve is worth at least 1.5 cents apiece when redeemed directly for travel via Chase Ultimate Rewards or using the “Pay Yourself Back” tool, meaning you’re getting 1.5% on all purchases you make, and 4.5% on travel and dining purchases since you earn 3 points per dollar in those two categories.

Related: Earn 2% cash back on everything with the no-annual-fee Citi Double Cash credit card.

So if you spend $2,000 a month overall on your credit card and one-third of that is on travel and dining, you’d earn $120 more in rewards in a year than you would with the Citi Double Cash, which is almost the entire remainder of the annual fee. Spend more than that each month on travel or dining — or in any of the other currently available bonus categories — and you’re coming out ahead. Spend less than that, and the card is costing you more than it’s worth.

Sapphire Reserve or Sapphire Preferred?

underscored chase sapphire preferred and reserve new csp

If you’re looking for a Chase travel credit card but don’t want to pay a high fee, there’s another option. The Chase Sapphire Preferred® Card doesn’t come with all the fancy perks or the $300 travel credit, but you’ll still be able to earn a decent amount of points. While you’ll earn 2 points on travel (or 5 total points if purchased through Ultimate Rewards), with recent card enhancements, you’ll now earn 3 points on dining, select streaming services and online grocery purchases. It also offers the same Peloton credits, but at a lower rate. Although at only a $95 annual fee, it could be a better fit for your budget.

Related: Read CNN Underscored’s review of the Chase Sapphire Preferred.

Unfortunately though, the Sapphire Preferred also an inferior offer where you’ll only earn 60,000 bonus points when you spend $4,000 in the first three months after you open the card.

If you only have the Sapphire Preferred, the points are worth 1.25 cents apiece when redeemed for travel instead of 1.5 cents each. That means your points are only worth $750 towards travel through the Chase travel portal, instead of $900 with the Sapphire Reserve.

You can also transfer points earned with the Sapphire Preferred to the same 14 airline and hotel partners as the Sapphire Reserve, which makes the points just as flexible, no matter which of the two cards you decide to carry. When using your points this way, this makes the value of the bonus offers the exact same between the two cards.

Additionally, Chase Sapphire Preferred card holders also have access to the “Pay Yourself Back” tool to redeem points at at 1.25 cents apiece, though the categories differ somewhat from those on the Sapphire Reserve.

Related: 6 reasons to get the Chase Sapphire Preferred credit card.

Not sure which card is right for you? You might consider signing up for the cheaper Chase Sapphire Preferred to start since it has a higher bonus, and then converting to the Sapphire Reserve after the first year. You won’t get all the perks of the Reserve in year one, but you’ll pay a lot less and can take that time to consider whether paying for the extra perks makes sense.

If you do end up converting to the Reserve in year two, any points you earned with the Preferred that you haven’t already used — including the sign-up bonus — will be redeemable for travel via Chase Ultimate Rewards at 1.5 cents each once you have the Reserve in hand. (Note that you can’t get a second sign-up bonus for converting from one card to the other.)

Related: Chase Sapphire Preferred vs. Chase Sapphire Reserve: Which is best for you?

Is the Chase Sapphire Reserve worth the annual fee?

It all comes down to how much you’ll utilize the benefits of the Chase Sapphire Reserve. if you don’t take a lot of Lyft rides, the extra Lyft points won’t be of value to you. If you don’t fly much, you won’t need airport lounge access very often. And if you live in an area without DoorDash service, you won’t see any benefit from having a DashPass membership or credits. That’s why it’s important to consider how many features of a credit card you’ll actually use when deciding if it’s right for you.

Also, if you’re already struggling with debt, now isn’t the time to go out and get an expensive travel credit card. Get your financial house in order first, then you can explore the world of credit card rewards.

But if you’re in solid financial shape and see yourself using some or all of the Sapphire Reserve’s features or spending a significant amount of money each year on travel or dining purchases, the math can work out in your favor. So if you’ve been considering whether a premium credit card is a good choice, take a look at the Chase Sapphire Reserve and see if it fits your current and future needs.

Learn more about the Chase Sapphire Reserve.

Learn more about the Chase Sapphire Preferred.

Find out which cards CNN Underscored chose as our best credit cards currently available.

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