Chase Sapphire Reserve Credit card: Review
Good afternoon Penny Pinchers! Hope you are all staying healthy in this concerning pandemic which is evolving day by day.
For those who have had their travels affected by this outbreak, one option that can help if you didn’t know about it, is a premium credit card which can provide insurance. One of these is the Chase Sapphire Reserve credit card.
This card became hugely popular when it was first released that it ran out of metal. This was back in 2016 (I had just arrived in the USA and had hardly a credit score) and offered a phenomenal 100,000 points as its sign up bonus. It was due to its popularity that the battle between premium credit cards began and consumers have been enjoying perks since. So without further ado, let’s go into the key points.
Key Features
- Earn 50,000 bonus points after you spend $4,000 on purchases in the first 3 months worth $750 toward travel when you redeem through Chase Ultimate Rewards®
- $300 Annual Travel Credit as reimbursement for travel purchases charged to your card each account anniversary year
- 3X points on travel and dining at restaurants & 1 point per $1 spent on all other purchases
- Utilize points through Chase’s portal for deals with 1:1 point transfer to different airline and hotel reward programs
- Free enrollment in Priority Pass™ Select
- Up to $100 application fee credit for Global Entry or TSA Pre✓®
- One Year Complimentary Lyft Pink and Complimentary DashPass subscription from DoorDash
- Travel protections such as cancellation/interruption/delays and emergency assistance along with car rental benefits
- No foreign transaction fees
Basics
This is the travel card to use for any travel expenses. It has a $300 travel credit which offsets the now recently increased $550 annual fee, which is very liberal when deciding what constitutes as “travel”. The whole point (pun intended) of this card and many other miles/points credit cards is to accumulate points for future use. The Chase rewards program allows transfers at a 1:1 ratio to several loyalty programs for both hotels and airlines, its diversity as well lenient transfer ratio makes it good program to have points accumulating for every day purchases. The 3 points for every dollar on travel as well as dining means a big proportion of every day expenses can be utilized with this card. This credit, along with the earning of points make it already a formidable card to have but it is the many perks with this credit card that add to the fun of having it.
Pros
Sign Up bonus
As with any credit card, you have to plan your finances when opening up a credit card. The sign up bonus is what gives you a big perk once you have the card of a large amount of points in a small amount of time. I opened mine when the offer was 70,000 points and planned some business trips which would be reimbursed by paying for them with this credit card. If you take into account one way of using these points is to redeem them directly through the Chase Ultimate rewards portal, 1 point is worth 1.5 cents, so 70,000 is equivalent to $1050 worth of credit on the portal. Still thinking of that annual fee?
Perks
$300 Travel credit
Now I know we have mentioned this quite a few times already, but I really must stress how good this is. I have used this travel credit on all sorts of things and it’s impossible not to use it. The first year I had the card, it was used straight away on flights, when it got renewed the second year, it was slowly used up by travel on the New Jersey Transit and the SEPTA and eventually on an Airbnb for the rest of the $300. I think this year, I was pleasantly surprised to find it was used for a multi storey car park for a month’s worth of parking.
This essentially brings down the annual fee by $300 as this is credit you get back as soon as the payment is processed.
Access to “The Luxury Hotel and Resort” and “Relais & Châteaux” groups
Chase’s Luxury Hotel & Resort Collection (LHRC) is a booking system that offers select Chase cardholders (including the Sapphire Reserve) elite-like benefits at more than 1,000 hotels, resorts, lodges and spas around the world. As per the Chase website you can enjoy complimentary guest privileges, including daily breakfast for two, complimentary Wi-Fi, and a special benefit unique to each property, such as a dining or spa credit, greens fees, or other privilege. Other perks available at select locations include a room upgrade when available, and early check-in and late check-out when available. Payment has to be made with the Chase Sapphire Reserve. I’ll talk about some of these possibilities in another post.
Relais & Châteaux have properties in over 60 countries and at these luxury hotels, Chase Reserve cardholders get a “VIP welcome,” as well as complimentary breakfast for all members of the party.
To qualify, you will need to call the Visa Infinite Concierge at 1-877-660-0905 for more details and to book your stay.
This Visa Infinite Concierge Access also can help you with requests, like dinner reservations, Broadway, music and sporting event tickets. Almost like a personal assistant, this can be very helpful for planning out trips in different parts of the world.
Complimentary Priority Pass Select membership
Chase state you “can access 1,200+ VIP airport lounges worldwide with Priority Pass™ Select and enjoy lounge amenities such as Wi-Fi, free snacks, beverages and more with an activated membership.”
Having the Chase Sapphire Reserve (as well as other credit cards) allows the member to get a complimentary Priority Pass Select membership allowing you and two guests to access airport lounges for free. These lounges are in the USA and internationally.
These lounges are a great place to relax and get some snacks (and drinks). I have even planned my layovers depending on the location of these lounges as well as planned meals of the day.
Chase Experiences
Cardmembers enjoy “exclusive access to some of the most exciting events in music, sports, entertainment and dining”. I have never redeemed any points for these particular events simply because of the location of where I have been but also because they haven’t particularly excited me to purchase/redeem, however there are quite a variety of options and there may be something that you like.
As mentioned previously, I haven’t participated in any of these experiences but have found the majority seem to take part in Chicago, New York and Californian cities.
Special Car Rental Privileges
As someone who doesn’t have a car, but finds that Uber/Lyft is not sufficient or economical to get around, a car rental is crucial. In New Jersey I had a very close Enterprise near me which is under National and so getting Emerald Club Executive level membership was very helpful with the Chase Sapphire Reserve. I have signed up for the Avis Preferred but circumstances have meant I just haven’t used them. I’ll go into more detail about the Emerald Club membership and the different tiers but this complimentary Executive level is something I have utilized quite a bit to save some money. For Avis, once you join their loyalty program you will be able to put a discount code or call a phone number and once you pay with your Chase Sapphire Reserve you will get 30% off! The other perk is getting a discount with Silvercar which although, often more expensive than some other car rental options using your Reserve card can get a discount that ranges from 10 to 30%.
Other Rental Car perks
The Sapphire Reserve also provides primary collision damage waiver which means you can decline the rental company’s collision insurance and charge the entire rental cost to your card. Coverage is primary and provides reimbursement up to $75,000 for theft and collision damage for rental cars in the U.S. and abroad. Most other cards offer secondary coverage, meaning you have to go through your insurance first before they can help. This means that your insurance premiums can possibly increase as a consequence. This covers damage and loss, but not liability, which means you will need a supplement liability insurance. It does not cover loss of personal property either. Certain cars are also excluded: antique automobiles, certain vans, vehicles that have an open cargo bed, trucks, motorcycles (including mopeds and motorbikes), limousines, and recreational vehicles. Lastly, if you have an agreement for over 31 days, it would be invalid.
The other useful perk is the Roadside Assistance. If you have a roadside emergency, you can call for a tow, jumpstart, tire change, locksmith or gas. You’re covered up to $50 per incident and a maximum of 4 times a year.
DoorDash Credit
DoorDash is a Food Delivery app which has joined up with Chase Sapphire Reserve where cardmembers can enroll in the Delivery App’s premium tier for free. Normally this is $10 a month, and this premium tier allows free delivery and reduced service fees with a minimum purchase. There’s also a total of $120 credit for the app which is reimbursed once the card is used for purchases. “You can earn up to $60 in statement credits for DoorDash food purchases for the first year until December 31, 2020. After that, you can earn another $60 in statement credits from January 1, 2021 through December 31, 2021.” Interestingly if you live in a downtown hub like me, this credit can be applied to pick ups as well.
Trip Cancellation/Interruption/Delay/Baggage delay Insurance
Chase offers a great insurance coverage (but as do a lot of other premium travel credit cards). “If your trip is cancelled or cut short by sickness, severe weather and other covered situations, you can be reimbursed up to $10,000 per person and $20,000 per trip for your pre-paid, non-refundable travel expenses, including passenger fares, tours, and hotels.
There is also coverage in the event of a delay. “If your common carrier travel is delayed more than 6 hours or requires an overnight stay, you and your family are covered for unreimbursed expenses, such as meals, toiletries, medication and lodging, up to $500 per ticket.”
The last part which falls under the same category of insurance is in the event of any baggage delay or loss. Chase “reimburses you for essential purchases like toiletries and clothing for baggage delays over 6 hours by passenger carrier up to $100 a day for 5 days”. For loss of baggage, “If you or an immediate family member check or carry on luggage that is damaged or lost by the carrier, you’re covered up to $3,000 per passenger.”
One thing to bear in mind is to be eligible for any of the benefits surrounding these is you must have paid for at least a portion of the trip with the Reserve. So even if you purchase your flights with miles or points, make sure to always pay the fees with your Reserve card!
sbe Hotels
sbe (yes, no capitalization!) hotels includes more than a dozen luxurious properties, and Chase Sapphire Reserve has recently teamed up with them where cardmembers get a fourth night free, $30 food and beverage credit, Daily continental breakfast for two, Free WiFi, Complimentary upgrades and late checkout, when available.
This isn’t something that I have tried yet, but I am looking forward to trying these perks.
Travel accident/Emergency health insurance
When you pay for your air, bus, train or cruise transportation with your card, you are eligible to receive accidental death or dismemberment coverage of up to $1,000,000.
You are also eligible if you’re 100 miles or more from home on a trip, to be reimbursed up to $2,500 for medical expenses if you or your immediate family member become sick or injured. This is after a $50 deductible as well as also providing $75 a day for hotel expenses if deemed not able to travel. There is also coverage for emergency transportation.
Lyft Pink membership and rewards
One of my earlier posts discusses Lyft and how to maximize points and cash back. This was before the new deal between Chase and Lyft. With Chase Sapphire Reserve members getting a complimentary Lyft Pink membership (premium tier level), they can enjoy preferred pricing, priority airport pickups, through one year of complimentary Lyft Pink, normally valued at $199.
For many, deciding between Uber and Lyft may have been decided by the fact that Lyft purchases now get 10 points for every dollar (3 points as per the usual travel category and 7 bonus points per dollar with this new partnership). As someone who has regularly used Uber and Lyft, price was always an issue, but this may be the reason why I go primarily with Lyft.
Purchase/Return protection
Chase Sapphire Reserve does offer a perk of offering protection on new purchases for 120 days against damage or theft up to $10,000 per claim and $50,000 per account as well return protection on items that the store won’t take back up to $500. This is particularly useful for new gadgets such as electronics or other high cost items that may need to be returned like clothes.
Global Entry or TSA Pre✔® Fee Credit
If you have the Chase Sapphire Reserve it’s likely that you like traveling! Global Entry and TSA Pre✔® both provide expedited service through security and every time you renew or initiate your Global Entry or TSA Pre✔® membership, be sure to charge your application fee to your Reserve card and you’ll receive an automatic statement credit of up to $100 every 4 years.
Earning points
As we discussed, on travel and dining you can get 3 points for every dollar (exception of Lyft purchases as above) and other purchases will earn you 1 point per dollar. The real value is the accumulation of Chase ultimate reward points, and their flexibility for being transferred to different programs. I will go over in another article and what this involves to understand why earning these points is so useful.
Cons/Alternatives to consider
All these perks may sound great depending on your personal preference but the first thing to weigh up is, is the cost of the card worth the benefits? Some of the benefits may seem useless. For example with the increase in annual fee, is the added perk of free membership with Lyft Pink and DoorDash worth it? If you don’t live in an urban setting where Lyft and delivery services are available it may not be worth it!
Some of the insurances are also very time consuming to pursue and I know some people who will pay the extra car rental additions simply to avoid the time consuming process of going through Chase. More on that in another post.
Also with some of these benefits, it is felt that you would need to spend a lot more money just to use the perk (think of these Luxury Hotels and Resorts compared to a cheap Airbnb or lower tier hotel chain).
Other cons may be the lack of lounge options compared to some of the Airline premium cards (Delta) or the American Express platinum. Also, the Priority Pass Select membership has been so saturated with other credit cards, that this is an evolving program which may not be of interest to you.
Lastly the Annual fee. $550 is a lot of money, and even with the $300 travel credit, you may just have a quiet year where most of your travel may be by car, or you won’t travel much to warrant chasing those points.
So what are the alternatives? The American Express Platinum is its closest rival, and I’ll go into a separate post about it, but in terms of luxury benefits with Hotels/resorts (automatic Gold status with Marriott and Hilton) and airline perks (plus ability to earn 5 points per dollar on air travel), this may be more to your liking. Another premium card is the Citi Prestige which also earns 5x points for every dollar on both travel and dining but one of their best perks (4th night free) was removed which along with the smaller variation in transfer partners may put you off it.
The other one is the Chase Sapphire Preferred, which is also a great travel card at a lower annual fee of $95. Now considering we include the travel credit of $300, the annual fee for the Reserve is $250, making the difference $155. We also need to include the 300 dollars of travel credit that wont earn points but has to be met before you can earn. So 300 dollars is 900 points that would have been earned and therefore 18 dollars (assuming 1 point is 2 cents). So you have to earn points worth 155 + 18 dollars to break even. This comes to $173 worth of points
Considering the difference in earning potential, for every dollar, you earn an extra point (with the Reserve) which again depending on how you value the point can be worth around 2 cents more (though this may be an overestimate). So based off calculations, $173/0.02 (2 cents) is 8,650 dollars that would need to be spent to cover the annual fee. So around 721 a month on the travel and dining. Can you spend that much?
How does the Penny Pinching Doc use it?
All my travel and dining is made with this card. With this card I try to accumulate points with Chase as much as possible. This has made me switch to Lyft and DoorDash (though I tend to do a pick up at my nearest burrito place with DoorDash and will likely stop once I use up the credit) just to keep the points within Chase. I also have used the Emerald Executive status with National a fair amount when renting a car as well as waiving fees on roadside assistance and damage waiver as Chase provides that anyway. Whenever I fly out of Cleveland and previously Newark, I would always plan my meals through their lounges (or restaurants), which although you can’t put a money on the lounges, you can certainly put with regards to the restaurants. Overall I have earned a lot of points through purchases made with this card especially considering my big purchases at hotels for big family events which has allowed me to maximize points on purchases that would have been made.
Although, I haven’t used some of the more elite perks such as with the affiliated hotels, that will be my next plan to test out with this card.
Conclusion
The Chase Sapphire Reserve continues to be one of the main players in the premium credit card industry, due to its earning potential, flexible transfer partners and perks, I would highly recommend this card if you travel often! I will be going over other aspects f this card and how it can be used in other posts such as how to use the rewards portal and the priority pass program.
Hope you enjoyed this post!
Stay safe!
Love this! Very detailed and well thought out review of a great card! Keep up the great work PennyPinching Doc!