Getting the Chase Sapphire Preferred Over the Reserve Card? | 9 Reasons It Might Make More Sense

Getting the Chase Sapphire Preferred Over the Reserve Card? | 9 Reasons It Might Make More Sense

Many of you know that I love the Chase Sapphire
Reserve. Though I often get asked whether it’s ever
worth getting a Chase Sapphire Preferred instead. Is there any compelling reason why a person
would opt to get the Sapphire Preferred over the Reserve card? Hey, how’s it going? It’s Ernest from Trip Astute. In this video, we’re going to review reasons
why it might be worth getting the Sapphire Preferred over the Reserve. A few years ago, I did a video comparing the
Chase Sapphire Reserve to the Sapphire Preferred. I basically ran through the reasons why I
chose the Reserve card over the Preferred card, and how it’s provided us value year
over year. Though during my card consultation sessions,
I’ve often encountered situations where it makes more sense to get the Sapphire Preferred
over the Reserve card, so I thought I would share my thoughts on it. I’ve heard some content creators in the
credit card and personal finance space say that they feel that the Sapphire Preferred
is an overrated card, but I think there are specific reasons why you might choose to get
it over the Reserve. In fact, I would argue that it might be more
strategic to get the Sapphire Preferred over the Sapphire Reserve, and we’ll cover why
later in the video. But before we get started, if you’re new
here, welcome to our channel. Trip Astute is a travel channel that is focused
on sharing ways to make travel easier, affordable, and more enjoyable. Traveling can be stressful and expensive,
so we’re looking for ways to help you maximize your experience through travel tips, points
and miles, and innovative gear. If that sounds interesting to you, please
consider subscribing. So, here are my top nine reasons you might
want to get the Sapphire Preferred over the Reserve card. 1. You don’t want to pay a high annual fee:
This is a huge one. The $450 annual fee on the Sapphire Reserve
can be daunting to many people. While the annual fee is closer to $150 when
you factor in the $300 travel credit, it can be hard to overlook the initial annual fee
charge. If you find yourself in this situation, it
might be better to get the Sapphire Preferred instead. You can always upgrade to the Sapphire Reserve
after your first year if you decide that it provides more value. 2. You’re new to the Chase Ultimate Rewards
program: Another common reason why you might be more inclined to get the Sapphire Preferred
is that you’re just starting out in the hobby. Like the previous reason, paying a $450 annual
fee can be daunting, especially when you’re not sure whether you’re going to commit
to the hobby. The Sapphire Preferred is a great starter
card to get your feet wet, gain some significant travel benefits and protections, and of course,
earns a large welcome offer to that you can apply to an upcoming trip. Speaking of welcome offers, number 3. You want the higher welcome offer: Despite
the fact that the Sapphire Reserve is Chase’s premium travel card, it has a lower annual
fee than the Sapphire Preferred. As of October 2019, the Sapphire Preferred
earns 60,000 points while the Sapphire Reserve earns 50,000 points. While the difference is 10,000 points, it’s
actually worth the same when you compare the Chase Travel Portal redemption rates. Expanding on redemption rates, number 4: You
plan to primarily transfer points to travel partners. The Sapphire Preferred redeems points on the
portal at 1.25 cents instead of the 1.5 cents found on the Sapphire Reserve. It’s a slight difference, but it can make
a difference if you use the Chase Travel Portal often. On the other hand, if you primarily transfer
points over to Travel Partners like United, Southwest, or Hyatt, then there is no difference
in redemption value. Most times, you want to find the highest value
possible, which means you’re looking to do a transfer to a travel partner rather than
using the travel portal. 5. You’re concerned about the high approval
credit limit requirement: This is a real issue for a lot of folks. Even if you have a high credit score, it can
be difficult to get a high credit limit if you don’t have an extensive credit history. Since the Sapphire Reserve is a Visa Infinite
product, it requires a minimum $10,000 credit limit for approval. The Sapphire Preferred, on the other hand,
is a Visa Signature product, which means that the minimum credit line required is $5,000. For a lot of folks, this could be a strong
reason to pursue the Sapphire Preferred over the Reserve card, especially if you’re starting
out in the hobby. 6. You already have a strong dining out card:
One of the biggest disrupters in the points and miles hobby was the revamp of the American
Express Gold card in 2018. With the card offering four Membership Rewards
points per dollar for groceries and dining out, a lot of people have felt torn about
which card to use for dining out purchases. I’ve struggled with this myself since I
personally prefer Chase Ultimate Rewards points, but I can’t ignore that the American Express
Gold earns more points for the category. This is where a Sapphire Preferred might be
a better option than the Reserve card. If you only plan to use a Sapphire card for
its travel category, then you might be better off getting the Sapphire Preferred. This is especially the case if you’re only
traveling a few times per year and don’t need the extra benefits provided by the Reserve
card. On the same note, number 7. Your other cards have overlapping benefits:
Many premium cards now offer benefits like lounge access, travel insurance, primary rental
car coverage, and no foreign transaction fees. If that’s the case, you might need the extra
travel benefits associated with the Reserve card. A perfect example is someone who might be
heavily invested in the American Express Membership Rewards program who is looking for a card
with a bonus category for travel and is either visa or mastercard in case their American
Express card isn’t accepted. In this scenario, it probably makes more sense
to get the Sapphire Preferred over the Reserve card. Number 8: You want to add authorized users:
While I normally don’t recommend that people add authorized users to their account, there
are certain situations where you might want to do it. For example, you might have a young dependent
that is early in their credit experience who you want to add to your account. If this is the case, you’ll likely prefer
the Sapphire Preferred over the Reserve card. The Sapphire Preferred does not charge a fee
to add an authorized user, while the Sapphire Reserve costs $75 per user. Granted, you get extra benefits with the Sapphire
Reserve, but for most people, that extra $75 is likely not worth it. And if they are able to take advantage of
the extra benefits, it probably makes more sense for them to get their own Sapphire Reserve
card. And finally, number 9: You’re looking to
maximize household points: This is probably the most compelling reason to get a Sapphire
Preferred over the Reserve card. A common scenario during my consultations
is someone starting out in the points and miles hobby and looking to build their Chase
card portfolio. If they have a spouse that is also interested
in getting cards, it’s often worth it to get the Sapphire Preferred over the Reserve. This is because once the person gets the Sapphire
Preferred, they have the ability to refer others to apply as well. This means that their spouse gets their welcome
offer and they get points for referring their partner. As of October 2019, you can get 15,000 points
per Sapphire Preferred referral. However, you can’t refer others to the Sapphire
Preferred if you have the Sapphire Reserve. In fact, you can’t even refer others to
the Reserve card. So for many families, this is actually a very
lucrative way to go, and compelling reason to get the Sapphire Preferred over the Reserve. Also, you always have the option of upgrading
your Sapphire Preferred to the Reserve card after your first year. For many households, this is a winning strategy
since you maximize the welcome offers. Lastly, there is one more thing you should
keep in mind. If you have the ability to get business cards,
it might be worth looking into the Chase Ink Business Preferred instead of a Sapphire Preferred. It qualifies as a premium card, so you’ll
get many of the same benefits that you get on the Sapphire Preferred and Reserve card. As of October 2019, it also has an 80,000
points welcome offer, which makes it a very lucrative card to get. While it’s not my favorite business card,
which in case you’re wondering is the Chase Ink Business Cash, it can serve as your premium
Chase card. For those of you that are new to the hobby,
you need at least one premium Chase card to get certain features unlocked in the Ultimate
Rewards program, like the increased travel portal redemption rate and ability to transfer
to travel partners. Without a premium card, your redemption options
are limited. What do you think about Chase Sapphire Preferred? Are there any other reasons for getting the
card that I missed in my list? Please let me know in the comment section
below. If you’re interested in applying for a Sapphire
Preferred or any other credit card, we would love it if you used our link in the video
description or on our website. It’s an easy way to support our channel,
especially if you’ve found our content to be valuable and helpful. Also, if you need any help with picking the
right credit card or developing a card strategy, sign-up for our free card consultation service. You basically fill out a questionnaire and
schedule a 15-minute video or audio call with me to review your recommendation. As always, we hope you enjoyed the video and
found it useful. If so, please give us a thumbs up and consider
sharing the video with others. It really helps us with growing our channel
and community. Until next time, travel safe and travel smart.

Comments (22)

  1. Are there other reasons that you would get the Sapphire Preferred over the Reserve card? Let me know if I missed anything on my list. 🤓

  2. Awesome video im working on my min spend on my cip then after that i will product change my csp for the beast csr

  3. Great video and strategy! My wife and IR just starting with the rewards game and I will be getting the CSP sometime next year for the 60K Bonus and then upgrading perhaps 2 the CSR after one year. We like the idea of getting 2/60K Bonuses on the CSP. Thanks again

  4. I’d get it for the 60k bonus but that’s about it although I like the idea of getting it if you’re not able to get approved for a 10k spending limit.

  5. Number six is the reason I downgraded my CSR to the CSP. With the Gold card being my go to for dining there was no way I could justify the $450 AF.

  6. I love my reserve especially using silver car by Aldie really worth the money

  7. I’m going to get the CSP card next year since it has a $95 fee. I’ll see how often I travel and maybe later on switch over to CSR. Also I’m new to travel hack and points and have to take it slow since I’m still learning. 😊

  8. I'm out here trying to figure out which is which

  9. Great video overview. Also, I been using your Amazon link a lot lately. I hope it helps you out

  10. Reasons Number 4 and 6……. drops mic!


  12. Great info as always. Wanted the CSR but my score at the time was only in the high 600s, applied for the CSP instead and was approved. After a year upgraded to the CSR, didn't mind the high AF because of the $300 travel credit, and I had over $300 in travel purchases to make that month anyway so it worked out perfectly. Effective AF on the CSR is only $55 more than the CSP. When you consider Priority Pass and the Chase portal at 1.5 cents per point, I end up getting a lot more value from the CSR over the CSP…. so for me it works…. but YMMV

  13. A) Already have Global Entry.
    B) Already have Priority Pass.
    C) Still chasing sign up bonuses for majority of spend.
    D) The difference in trip protection is negligible for many.
    E) Primary rental car coverage is the same concerning the average rental car.

  14. If you get the CSP and then upgrade to a CSR after a year, you won't get the CSR sign-up bonus due to the 48-month rule. In a few months my 48 months will run out so I'll downgrade my CSP to a Chase Freedom and then apply for a CSR and the Chase Ink Business Preferred. Crossing fingers that it will work!

  15. Errrrr there is no reason to get CSP over CSR

  16. I'm planning on getting the CSP early next year because it only has a $95 annual fee, I don't travel much yet, I want this to be my first "premium card" to test it out, and because it has the historical high 60,000 point sign-up bonus!

  17. I got the CSP because I have ink preferred and Hilton Aspire for premium and it's our family vacation card. Plus my wife has the amex plat, no need for CSR right now. It would be hard to get value out of all the fees.

  18. Just Subbed! Great Videos Ernest!

  19. Can you acquire the 60000 from the sign up bonus, then after a year product change to the CSR and get 1.5 multiplier? Totaling $900 instead of $750 from the CSP.

Comment here