The following card is only recommended for you if you can meet the following requirements:
- You live in the US.
- You have a valid SSN.
- You have a credit score of 750+.
1st year $870+ benefits ONLY included in Sapphire Preferred/Reserve card:
- $750 cashback for travel expenses in 1st year if you spend $4,000 in the first 3months of card approval.
- Sapphire Preferred - 5% cashback (or 6.875% travel cashback) on Lyft till March 2022.
Sapphire Reserve - 10% cashback (or 16% travel cashback) on Lyft till March 2022. - $120 worth of 1 year of DoorDash unlimited $0 delivery service with reduced service fees (Dashpass).
Lifetime benefits ONLY offered by Sapphire Preferred & Reserve ($2000+ Value/Year):
- Travel: 5+% flat cashback
Sapphire Preferred - 6.75% travel cashback
Sapphire Reserve - 7.5% travel cashback
Travel cashback applicable on travel booked via Chase travel portal.
Real Value - This is 3%-6% above other credit cards.
$50+ additional cashback/year If you spend $1000/year on travel (single).
$150+ additional cashback/year If you spend $3000/year on travel (with family). - Hotels & Car Rentals:
Sapphire Preferred - 5% flat cashback - 6.75% travel cashback
Sapphire Reserve - 10% flat cashback - 15% travel cashback - Dining/restaurant/fast-food: 3+% flat cashback
Sapphire Preferred - 4.05% travel cashback
Sapphire Reserve - 4.5% travel cashback
Real Value - This is 1%-3% above other credit cards.
$35+ additional cashback/year. If you spend $100/month on eating out (single).
$100+ additional cashback/year If you spend $300/month on eating out (with family). - Cashback on travel NOT booked via Chase travel portal:
Sapphire Preferred - 2% flat cashback - 2.7% travel cashback
Sapphire Reserve - 3% flat cashback - 4.5% travel cashback - Sapphire Preferred - $50 coverage for hotel expenses every year
Sapphire Reserve - $300 coverage for travel expenses every year - Trip cancellation / interruption insurance -
All travel that gets cancelled or halted or cut short by sickness or government ordered quarantine or severe weather that you are not able to get a refund for is covered upto $10,000/traveler and up to $20,000/trip by Chase.
Real Value - $500, as you will rarely end up using this. - Trip delay coverage -
If your trip is delayed by 12+ hours; Chase will reimburse extra unanticipated expenses, up to $500/traveler.
Real Value - $0, travel is almost never delayed by 12+ hours. - Luggage delay coverage - $100/day for 5 days if your luggage is delayed for 6+ hours.
- Lost/Damaged Luggage coverage -
Max $3,000/person if luggage is damaged/lost by airline or another carrier.
Real value - $0, luggage almost never gets stolen/damaged nowadays. - Automatic protection against damage or theft for all products -
If anything you bought gets damaged or stolen within 120 days after you buy it, your purchase is covered up to $500/claim and $50,000/account.
Real Value - $500 as this covers everything you ever buy for 4months.
Damage can be caused during installation, first use, or by kids, pets, water, etc.
Theft can happen during travel or if the product is stolen when forgotten or left outside.
Examples - TV install, iPhone screen replacement, kids' bike gets stolen, etc. - Automatic 1-year warranty extension on Home appliances -
1 year of extended/added warranty coverage on home appliances with <3 year warranty.
Benefit is $10,000/claim and $50,000/account.
Real Value - $500, can be really beneficial if your $500 TV, washing machine, etc. abruptly stop working at the end of their <3yr warranty period. - Primary Auto Rental Insurance for Accidents and Theft -
If you have an accident with your rental vehicle or it gets stolen, you can submit the entire claim directly to your credit card company for reimbursement for up to the cash value of the vehicle. This is better than Secondary coverage provided by other cards in which you have to involve your personal auto insurance company.
Real Value - $0 as not involving your personal auto insurance company only prevents a hassle, it doesn't save you money.
Real Value - $100 as luggage can be expected to be delayed by 1 day at least once a year.
Additional Lifetime benefits ONLY offered by Sapphire Reserve ($550+ Value/year):
- Emergency Evacuation & Transportation:
If you or a member of your immediate family are injured or become sick during a trip far from home that results in an emergency evacuation; everyone's medical services and transportation are covered up to total maximum of $100,000.
Real Value - $0; very rare occurence - Return Protection:
If an online/physical store won't accept your return on what you bought from them in 90 days of purchase, your purchases are covered up to $500/item, total $1,000/year.
Real Value - $100/yr; very rare occurence - Global Entry / TSA PreCheck® Fee Credit:
Receive a statement credit of up to $100/4years as reimbursement for the Global Entry / TSA PreCheck® application fee charged to your card.
Real Value - $25/yr - Priority Pass™ Select:
Airport Lounge Access at 1,300+ VIP lounges in over 500 airports/cities worldwide.
Real Value - $429/yr (equal to Prestige level membership)
Other basic benefits included that other cards also provide:
- $0 Fraud Liability on card theft.
- $0 Foreign Transaction Fee on all foreign purchases.
- 1% basic cashback on all non travel related purchases.
Sapphire Preferred - 1.35% travel cashback on all non travel related purchases.
Sapphire Reserve - 1.5% travel cashback on all non travel related purchases.
Fine print:
- Annual Fee -
Sapphire Preferred - annual fee of $95
Already covered if you spend at least a total of $1000/year on travel, $100/month on eating out and book a hotel at least once/year.
This $95 annual fee is covered and justified even if you compare this card to a flat 2% cashback card.
Sapphire Reserve - annual fee of $550
Already covered by the $300 travel cashback and if you plan on visiting Airport priority pass lounges at least 4 times year (equivalent to 1 roundtrip = visiting 4 airports/year) - All travel cashback % listed above is higher than normal cashback because:
A) Chase gives a % travel cashback bonus of using basic cashback to book all air travel / hotels / car rentals via Chase travel portal.
Sapphire Preferred - 25% travel cashback boost
Sapphire Reserve - 50% travel cashback boost
B) Sapphire Preferred gives cardholders a 10% anniversary cashback boost every year.
NOTE: Sapphire Reserve offers no anniversary cashback boost.
Conclusion:
- Getting Sapphire Preferred is justified for everyone in the US.
Getting Sapphire Reserve is justified if you do at least 1 air-travel roundtrip/year. - If you travel and spend only a basic amount, the card more than covers its fee by providing you with unparalleled protections and coverage on all your travel and purchases.
- If you don't like to spend any money at all, this card still justified to get for the first year because of the $750 cashback you get if you are able to get your credit card bill to $4000 in the first 3months (which can easily be achieved by paying your monthly rent through the card).