The Chase Sapphire Reserve® has a cult-like following ever since it launched in 2016 to an overabundance of applicants — so many that Chase ran out of the metal to make the card. But the card is getting some major updates this year that have cardholders second guessing whether it's truly the best luxury travel card.
New applicants will now pay a $550 annual fee starting January 12, 2020, and the price is going up for existing cardholders on April 1, 2020. That's a $100 increase from the current $450 fee.
I lucked out when I applied and got approved for the Chase Sapphire Reserve® earlier this week, locking in the $450 annual fee for a year — and you can too if you apply by January 11, 2020. However, I wasn't expecting the annual fee to increase right away. Now that I'll be charged $550 next year, I'm questioning the value of the card.
And so are existing cardholders. There has been a lot of chatter on forums, such as Reddit, with existing cardholders complaining about the fee and considering cancelling the card.
Below, Select breaks down the value of the card so you can decide if the $550 annual fee is worthwhile.
Chase Sapphire Reserve®
Rewards
Earn 5X total points on flights and 10X total points on hotels and car rentals when you purchase travel through Chase Ultimate Rewards® immediately after the first $300 is spent on travel purchases annually. Earn 3X points on other travel and dining & 1 point per $1 spent on all other purchases plus, 10X points on Lyft rides through March 2025
Welcome bonus
Earn 60,000 bonus points after you spend $4,000 on purchases in the first 3 months from account opening. That's $900 toward travel when you redeem through Chase Ultimate Rewards®
Annual fee
$550
Intro APR
None
Regular APR
22.49% - 29.49% variable
Balance transfer fee
5%, minimum $5
Foreign transaction fee
None
Credit needed
Excellent
Terms apply.
Read our Chase Sapphire Reserve® review.
Value of Chase Sapphire Reserve benefits
Chase confirmed that all existing card benefits are remaining, and a few new perks are being added to help compensate for the increased fee. Here's an analysis of how much each perk is estimated to be worth.
- Annual travel credit: $300
- Priority Pass Select membership: $429
- Global Entry or TSA PreCheck credit: up to $100
- Lyft Pink membership: $239
If you take advantage of all these benefits, the total estimated value of the perks is approximately $1,388. That more than offsets the $550 annual fee. And that's not including the other benefits that are harder to estimate value, such as daily breakfast for two and room upgrades at The Luxury Hotel & Resort Collection.
Alternatives to the Chase Sapphire Reserve card
Not everyone is an extreme optimizer, and it might be hard for some people to use all the perks offered by the Sapphire Reserve card. If you don't want to pay a high annual fee, consider downgrading to the similar Chase Sapphire Preferred® Card, which has a lower $95 annual fee. (Compare the Chase Sapphire Reserve® card and the Chase Sapphire Preferred® card.)
Chase Sapphire Preferred® Card
Rewards
$50 annual Ultimate Rewards Hotel Credit, 5X points on travel purchased through Chase Ultimate Rewards®, 3X points on dining, 3X points on select streaming services and online grocery purchases (excluding Target, Walmart and wholesale clubs), 2X points on all other travel purchases, and 1X points on all other purchases
Welcome bonus
Earn 60,000 bonus points after you spend $4,000 on purchases in the first 3 months from account opening. That's $750 when you redeem through Chase Ultimate Rewards®.
Annual fee
$95
Intro APR
None
Regular APR
21.49% - 28.49% variable on purchases and balance transfers
Balance transfer fee
Either $5 or 5% of the amount of each transfer, whichever is greater
Foreign transaction fee
None
Credit needed
Excellent/Good
Terms apply.
Read our Chase Sapphire Preferred® Card review.
And if paying $550 isn't an issue, you might want to consider another luxury travel card. The Platinum Card® from American Express annual fee costs $695 (see rates and fees) a year and offers premium travel perks, such as lounge access, Uber credits, Global Entry/TSA PreCheck credits and airline fee credits (see rates and fees).
The Platinum Card® from American Express
Rewards
Earn 5X Membership Rewards® Points for flights booked directly with airlines or with American Express Travel up to $500,000 on these purchases per calendar year, 5X Membership Rewards® Points on prepaid hotels booked with American Express Travel, 1X points on all other eligible purchases
Welcome bonus
Earn 80,000 Membership Rewards® Points after you spend $8,000 on purchases on your new Card in your first 6 months of Card Membership. Apply and select your preferred metal Card design: classic Platinum Card®, Platinum x Kehinde Wiley, or Platinum x Julie Mehretu.
Annual fee
$695
Intro APR
None
Regular APR
See Pay Over Time APR
Balance transfer fee
N/A
Foreign transaction fee
None
Credit Needed
Excellent/Good
See rates and fees, terms apply.
For rates and fees of The Platinum Card® from American Express, click here.
