Chase Sapphire Reserve Credit Card Review

Full Review of Chase Sapphire Reserve Credit Card

Pros Explained

• Excellent point rewards for travel and dining: At 3 points per $1 spent for travel and dining purchases, this card offers one of the best rewards rates among premium travel cards—better, even, than its lower-priced sibling, the Chase Sapphire Preferred.
• Points are worth 50% more for travel bought through Chase: The value of points increases from 1 cent per point to 1.5 cents per point when redeemed for travel through Chase Ultimate Rewards. That boost gives you an effective rewards rate of 4.5% on travel and dining purchases since you earn 3 points per $1 in those categories. While the Chase portal allows points to be redeemed for cash back, gift cards, and transfers to Chase points partners, the bonus applies only if points are used to make travel purchases.
• Large bonus for new cardholders: Few travel cards offer a bonus as substantial as the Chase Sapphire Reserve, which partly explains the card's popularity. New members can earn 60,000 bonus points after spending $4,000 on purchases within the first three months of opening an account. That's $900 toward travel when you redeem through Chase Ultimate Rewards®.
• Exceptional luxury travel benefits: Earn up to $100 in statement credits (every four years) towards Global Entry or TSA Precheck, complimentary access to more than 1,000 VIP airport lounges worldwide, and benefits with the Luxury Hotel & Resort Collection.

Cons Explained

• $550 annual fee: With its $550 annual fee, this is among the priciest cards on the market. This card's cost increases the incentive to determine in advance the likelihood that you'll travel and eat out enough to have the investment pay off.
• Limited high-rewards categories: Some cards offer their best rewards in a range of categories, and some offer strong earnings on many or most purchases. The Chase Sapphire Reserve isn't such a card. Chase limits this card's 3-points-per-$1 rewards to travel and dining. Beyond that, all other purchases earn just 1 point per $1 spent.
• Strong credit appears to be required: Unlike many other card issuers, Chase doesn't specify the minimum credit score range to qualify for each of its cards. But the best indications are the Chase Sapphire Reserve recommends excellent credit, which is to say a score of at least 750.   

The Chase Sapphire Reserve is a compelling choice for devoted travelers with excellent credit searching for a premium travel card. Yet it can also be a good option for average consumers who take only a few trips per year but want to enjoy luxury benefits when they're on the go. The credit of up to $100 (every four years) for Global Entry or TSA Precheck further adds to the card's value, and complimentary access to more than 1,000 airport lounges boosts travel comfort. 

With the travel credit factored in, you could more than break even on the card's annual fee if you spent around $108 per week on a combination of travel and dining—both of which earn 3 points per $1 spent—and redeem those points for travel through Chase Ultimate Rewards. 

This card is particularly rewarding for those who also hold, or are open to getting, other Chase cards that earn Ultimate Rewards points. That's because you can transfer points back and forth between those cards and your account for this one. For each transaction, then, you can choose the Chase card on which you'll earn the most and transfer points you earn with it to your Chase Sapphire Reserve account. That allows you to take advantage of the bonus rate on travel bought via Chase Ultimate Rewards.

Chase Sapphire Reserve Credit Card One-Time Offer

New cardholders can receive 60,000 bonus points after making $4,000 or more in purchases within the first three months of opening an account. That's a value of $900 when the points are used to book travel through Ultimate Rewards. After you qualify for the bonus, points are credited to your balance within six to eight weeks.

Rewards Earning Details

Earn 10x total points on chase Dining purchases with Ultimate Rewards®. Earn 5x total points on flights and 3x on other travel worldwide. Earn 3x points on other dining at restaurants, including eligible delivery services, takeout and dining out. Plus, earn 1 point per dollar spent on all other purchases.

Chase has broad definitions of the spending that qualifies as travel. Eligible purchases encompass not only those from airlines, hotels, and motels but timeshares, discount travel sites, campgrounds, car rental agencies, and cruises (not counting purchases made aboard the boat). Public transportation, limousines, taxis, ferries, highways, toll bridges, parking lots, and garages are also included, though not spending on gasoline or other fuels. Dining includes both fast food outlets and fine-dining restaurants.

Rewards Redemption Details

This card shines in offering diverse ways in which to redeem its rewards. Any points you earn can be used directly to book travel and a range of other experiences using the Chase Ultimate Rewards portal. But you can also redeem points for cash back, gift cards, Amazon.com orders, and Apple purchases.

Points are worth 1.5 cents per point when redeemed for travel through Chase Ultimate Rewards, and at 1 cent per point for cash back, experiences, and gift cards. You make a little less, 0.8 cents per $1, on redemptions for Amazon.com and Apple purchases. That makes these transactions a poor option unless you can't wait to convert points into cash back before you buy from these companies.   

Ultimate Rewards points don't expire as long as your card is open.

Transferring Points

Points can be moved at a 1:1 ratio to one of Chase's travel partners. That can be very advantageous if you're a member of a loyalty program and find a good deal through a travel partner. By leveraging your Ultimate Rewards points to take advantage of limited-time offers through Chase's travel partners, you might be able to greatly increase the value of a point.

Chase's airline travel partners include:

• Aer Lingus, AerClub
• Air Canada Aeroplan
• British Airways Executive Club
• Emirates Skywards
• Flying Blue Air France KLM
• Iberia Plus
• JetBlue TrueBlue
• Singapore Airlines KrisFlyer
• Southwest Airlines Rapid Rewards
• United MileagePlus
• Virgin Atlantic Flying Club

Its hotel travel partners include:

• IHG Rewards Club
• Marriott Bonvoy
• World of Hyatt

How to Maximize Your Rewards

You can begin getting the most value out of this card by ensuring you take advantage of its introductory bonus. That may take some planning, such as moving up some anticipated big purchases, since you need to spend at least $4,000 in your first three months with the card to earn the 60,000-point bonus reward. (Be careful to consider when and how you will pay back the purchases to avoid having interest charges eat into your net gain from the bonus.)  

Next, if you have any other Chase cards that earn Ultimate Rewards points, look carefully at the points rewards you receive from those. Compare them to the rates you're making with the Chase Sapphire Reserve. Because you can transfer points from those cards to this one, consider using the Chase card that offers the best reward for any particular purchase. In the long run, you may even want to acquire other Chase cards that offer higher points in some categories so as to make the most of this helpful points-transfer capability.

If you're a member of a loyalty program, look into transferring points to Chase's travel partners. While using points to buy travel at Chase Ultimate Rewards portal earns you a 50% bonus in their value, you may get greater value still by transferring points to partners. Points transfer at a 1:1 ratio, which increases the possibility that using them in a partner program might pay off.

Remember to use this card's money-saving benefits as well. It offers trip cancellation and interruption insurance, for example, which isn't part of the benefits packages for all other travel cards.

Average Case

Let's estimate spending and rewards for an average household which, according to the Bureau of Labor Statistics, spends $2,375 on dining out annually. Those meals would earn about 7,125 points with the Chase Sapphire Reserve. Adding a vacation per year that costs $1,500 in airfare would earn 3,600 additional points (you earn 3X points on travel). We've omitted earnings at the 1 point per $1 spent for regular purchases, because comparable earnings are available with most points cards, including some no-fee ones.

In total, then, our family might earn 10,725 points with this card in travel and dining rewards. Exchanged for travel through Chase Ultimate Rewards, those points would, with the 50% bonus at that site, be worth $160.76 (If they were instead traded for cash back, they'd be worth $107.25). 

You can earn 10x total points on hotels and car rentals when you purchase travel through Chase Ultimate Rewards®. Earn 10x total points on Chase dining purchases with Ultimate Rewards®. Earn 5x total points on flights and 3x on other travel worldwide. Earn 3x points on other dining at restaurants, including eligible delivery services, takeout and dining out. Plus, earn 1 point per dollar spent on all other purchases.

Since you've spent 1,500 on travel, you would be eligible to receive huge bonuses, which may come in handy to offset the $550 annual fee.

Aspirational Case

Avid travelers who take more than a few trips per year and dine out at restaurants regularly will predictably reap higher rewards with this card. They'll also be able to take full advantage of its perks.

Now let's calculate the benefits compared with the fee for a household that spends triple the typical amounts on both dining and travel—a plausible scenario for a family who pays for a premium travel and dining card like the Chase Sapphire Reserve. They would spend $7,125 on dining, earning 21,375 points. Additionally, they would spend 4,500 in travel and earn about 21,000 points. With these 41,375 points, they would have $413.75 in cash back value or $635.63 in travel value at Chase Ultimate Rewards.

Given the $550 annual fee, frequent travelers and diners would allow the rewards to pay for themselves while receiving other benefits such as lounge access, 3X the points on dining, and earning 1 point for every $1 on every other purchase.

Chase Sapphire Reserve Credit Card's Outstanding Benefits

• Statement credit up to $100 every four years for Global Entry or TSAPrecheck
• Access to more than 1,000 airport VIP lounges worldwide
• Complimentary benefits with the Luxury Hotel & Resort Collection
• 24/7 access to customer service specialists

Standard Benefits

• No foreign transaction fees
• Trip cancellation and interruption insurance
• Primary auto rental collision insurance
• $3,000 in lost luggage reimbursement
• Trip delay reimbursement up to $500
• Emergency evacuation and transportation up to $100,000
• Purchase and return protection
• Extended warranties

Cardholder Experience

Chase ranked fourth out of 11 national card issuers and scored one point below the average score in the J.D. Power 2021 U.S. Credit Card Satisfaction Study.

Cardholders get a number of free features that are also standard with most other cards, including 24/7 access to a customer service specialist from anywhere in the world and a free credit tool, which Chase calls Credit Journey, that automatically alerts you of potential fraud. There's also a free credit score with the card.

Customers can use Chase's credit card resources center to get answers to common questions about their credit card, access education information about credit cards, learn what to do in case of fraud, and take steps to dispute a charge. 

The self-service tool kit can help you perform tasks like signing up for automatic payments, verifying and replacing your card, adding authorized users, and setting up account alerts.

Chase's online customer service information 404 for credit cards indicates no email or chat options for customer service, only assistance by phone or physical mail. The customer service call center is available 24/7 at 800-432-3117. Customers can also message Chase on Facebook, Instagram, or Twitter at @ChaseSupport.

Security Features

Credit card customers at Chase get a number of security benefits, all fairly standard among card providers. At a high level, Chase offers safety precautions like multiple authentication checks when you're logging in via the website or mobile app. It also monitors your profile to detect fraud and encrypts your username, password, and other personal account information.

For its credit cards, Chase provides 24/7 fraud monitoring—the bank will alert you if any unusual activity occurs on your account. It also provides card replacement services in case your card is lost or stolen, and it doesn't hold you responsible for unauthorized charges made with your card.

This card comes with chip-enabled technology to provide enhanced security when making purchases.

Fees to Watch out For

There's a fee of $75 for each additional authorized user of your Chase Sapphire Reserve card; while it’s not uncommon for premium cards to impose such charges, not all do so. Other fees are in line with industry standards.

Chase Sapphire Reserve vs. Sapphire Preferred

Chase offers a less expensive alternative to the Sapphire Reserve Card in the form of the Sapphire Preferred card. The Sapphire Preferred actually predated Sapphire Reserve by a number of years before Chase decided to launch a higher-end luxury card to properly compete with the Platinum Card from American Express. The cards are quite similar in their general rewards structure offering bonus Ultimate Rewards points on worldwide travel and dining expenditures, though Sapphire Preferred only offers 2X points on travel vs. 3X points for Sapphire Reserve.

In addition to the enhanced earning rate, the Sapphire Reserve card offers premium travel benefits such as airport lounge access and TSA PreCheck or Global Entry credit every four years whereas Sapphire Reserve does not. Both cards do provide primary auto rental insurance coverage, though.

Another important thing that distinguishes the two cards is on the redemption side. While both offer a redemption bonus when using Ultimate Rewards to book travel through Chase, Sapphire Reserve offers a 50% bump in value compared to only 25% for Sapphire Preferred.

So, to truly understand whether one is better than the other, you must determine the value of the rewards earned and redeemed from the one-time bonus, likely annual spending, along with the value of the travel credits and airport lounge access. Once you arrive at the number for each card using your annual category spending, simply subtract the cost of the annual fee in each scenario to see where you come out for which better fits your situation and rewards aspirations.

Below is a head to head comparison of the rewards and benefits of each:

Our Verdict

With premium perks, generous rewards, and an outstanding bonus offer, Chase Sapphire Reserve is a top entry among premium travel cards. Travel maximalists will get the most benefit from this card, but its rewards and perks are substantial enough that even typical diners and travelers might come out ahead after paying the $550 annual fee. 

Chase's redemption program adds to this card's appeal. Extremely flexible, the plan allows cardholders to redeem points for nearly any purchase type or transfer points to a loyalty program. There's also an outstanding 50% bonus when points are used to buy travel from Chase Ultimate Rewards.  

Yet another plus: People who hold this card and other Chase cards that earn Ultimate Rewards can use the additional cards, perhaps at better rates for certain purchases than the Chase Sapphire Reserve, and then transfer the points earned to this card's account to buy travel at Chase Ultimate Rewards, thus enjoying the 50% points redemption bonus of Sapphire Reserve.   

Yet if your travel and dining habits are merely typical, the Chase Sapphire Preferred might be a better option. Its benefits and rewards aren't quite as robust as the Sapphire Reserve, but they're fine nonetheless, and it's more likely you'll be able to justify its lower ($95) annual fee. This sibling card comes with a comparably substantial bonus.