What You Need to Know About Chase Sapphire Reserve Changes

The Chase Sapphire Reserve has undergone some significant changes recently, and it's essential to understand what's new and how it affects you.

The annual fee for the Chase Sapphire Reserve has increased to $550.

If you're a current cardholder, you'll continue to enjoy the benefits you're used to, but new applicants will be subject to the higher fee.

The card's earning structure has also changed, with a new bonus category for dining and a higher earning rate on travel purchases.

Check this out: Chase Sapphire Reserve Is It Worth It

If you're interested in upgrading to the Chase Sapphire Reserve, you can product change from the Sapphire Preferred.

You can continue to use your Sapphire Preferred in the meantime, earning 3X points in bonus categories and the $300 travel credit is active immediately.

The annual fee for the Sapphire Reserve is $550, but it's worth noting that the Sapphire Preferred annual fee is $95, which can be pro-rated when you close the account.

A unique perspective: Chase Sapphire without Annual Fee

You can product change from the Sapphire Preferred to the Sapphire Reserve and still earn the benefits of the new card, including the $300 travel credit.

A few days after the product change, you'll receive a new Chase Sapphire Reserve card in the mail.

To product change, you'll need to call the number on the back of your Sapphire Preferred card and speak with a credit analyst.

The process is relatively straightforward, but you may need to ask to be reconsidered for the new card.

If you're not approved for the Sapphire Reserve, you can try product changing from the Sapphire Preferred to the Reserve and then applying for the Reserve again after 5/24 months.

Here are the key benefits of the Chase Sapphire Reserve:

While the annual fee for the Sapphire Reserve is $550, the benefits often make it worth the cost for avid travelers.

The Chase Sapphire Reserve's annual fee is $550, but it's not the most expensive card on the market. In fact, it's a bargain compared to some other premium credit cards.

You can offset the annual fee by spending just $7,200 throughout the year, or an average of $600 per month. This is achievable by focusing on travel and restaurant purchases, which earn 3X and 5X points respectively.

The annual fee is effectively reduced to $250 if you spend $300 or more on travel each year, thanks to the card's automatic $300 travel credit. This credit covers a wide range of travel expenses, from flights and hotels to taxis and Uber rides.

Here's a breakdown of the estimated value of the Chase Sapphire Reserve's benefits:

These perks are estimated to be worth a total of $1,388, which more than offsets the $550 annual fee.

If you're a cardholder who signed up for the Chase Sapphire Reserve account before May 21, 2017, you're subject to a different set of rules for your annual travel credit.

Your annual travel credit resets each year on the day after your December statement closes. For example, if your December statement closes on Dec. 16, you can start using your next annual travel credit on Dec. 17.

This quirk allows you to spend your next year's travel credit before the calendar year even begins.

Suggestion: Chase Sapphire Reserve Annual Fee Increase

The Chase Sapphire Reserve's annual fee is $550, but it's not all bad news. In fact, you can easily offset the fee with rewards and benefits. For example, if you spend $7,200 throughout the year, you'll earn enough points to cover the fee, averaging $600 per month.

One of the best ways to offset the fee is by using the card's travel benefits. With the annual $300 travel credit, you can automatically consider the fee more like $250. This credit covers a wide range of travel expenses, including flights, hotels, taxis, and more.

Other benefits, like Priority Pass Select membership and Global Entry or TSA PreCheck credit, are also worth a significant amount. In fact, if you take advantage of all these benefits, the total estimated value is approximately $1,388, more than offsetting the annual fee.

Here's a breakdown of the estimated value of the Sapphire Reserve's benefits:

If you're not sure if the Sapphire Reserve is worth it, consider downgrading to the Chase Sapphire Preferred Card, which has a lower $95 annual fee.

You'll love the travel perks of the Chase Sapphire Reserve. The card offers a statement credit of up to $120 for either a TSA PreCheck application fee or a Global Entry application fee, which can be claimed once every 4 years.

Airport lounge access is another huge benefit, with unlimited access to over 1,300 lounges worldwide for you and up to two guests through Priority Pass Select membership. You'll also get unlimited access to Chase Sapphire branded lounges, which are designed to be chic and spacious with upscale amenities like showers and wellness areas.

The Chase Sapphire Reserve also comes with a $300 travel credit that can be used on any travel purchase, making it a lot simpler and easier to use than travel credits on other premium travel cards.

Intriguing read: Credit Reserve Ratio

The Chase Sapphire Reserve offers a statement credit of up to $120 for either a TSA PreCheck application fee or a Global Entry application fee.

You can claim this benefit once every 4 years, giving you plenty of time to renew your membership before the 5-year expiration date for either program. Global Entry membership gets you through customs screening faster when returning to the U.S. from a trip abroad.

Global Entry members automatically get TSA PreCheck benefits, so if you travel internationally, you’ll likely want to use your credit to apply for Global Entry. Both Global Entry and TSA PreCheck have a 5-year membership period and cost $120 and $78, respectively.

If you don't already have Global Entry or TSA PreCheck, this benefit can effectively drop the card's annual fee by another $100(ish) dollars for at least the first year.

Airport lounge access can be a game-changer for frequent travelers. The Chase Sapphire Reserve offers Priority Pass lounge access, which grants you unlimited entry to over 1,300 lounges worldwide for you and up to two guests.

These lounges can range from mediocre to truly impressive, especially in airports outside the US. You'll still get to enjoy Priority Pass lounge access, even if the Priority Pass Restaurant benefit is discontinued.

The Priority Pass Select membership included with the Sapphire Reserve is a standard perk for premium travel cards. If you don't have lounge access elsewhere, it's definitely worth considering.

The Sapphire Reserve also gives you access to Chase Sapphire branded lounges, which are designed to be chic and spacious. These lounges offer complimentary food and drinks, showers, and wellness areas, making them a cut above the typical airport club.

If you're considering ditching the Chase Sapphire Reserve, there are some great alternatives to explore.

The Platinum Card from American Express is a solid option, offering a welcome offer of 80,000 points after spending $8,000 in the first 6 months, and earning 5X points on flights booked directly with airlines.

Its annual fee is $695, but it's easily offset by its many perks and credits, including elite status through Marriott Bonvoy and Hilton Honors, and up to $1,700 in various annual credits.

The Capital One Venture X Rewards Credit Card is another contender, with a $395 annual fee and a bevy of benefits, including a $300 annual Capital One Travel statement credit and up to $120 in statement credits toward TSA PreCheck or Global Entry.

You can earn 75,000 bonus miles when you spend $4,000 in purchases during the first 3 months, and get 10,000 bonus miles each year on your account anniversary.

If you're not an extreme optimizer, consider downgrading to the Chase Sapphire Preferred, which has a lower $95 annual fee and similar benefits to the Sapphire Reserve.

The Chase Sapphire Preferred and Capital One Venture X might form the perfect two-card combination, offering access to two different sets of transfer partners, two welcome offer bonuses, and top-notch travel perks at a lower annual fee.

If this caught your attention, see: Venture X or Chase Sapphire Reserve

If you're on a tight budget, you're in luck because the Chase Sapphire Reserve has a $300 annual travel credit that can quickly zero out much of its $550 annual fee.

You can cover the $250 remaining fee by spending $6,000 in travel purchases, earning 3X points, and redeeming them for cash at the rate of 1 cent per point.

Spending $7,200 throughout the year, or an average of $600 per month, can also offset the annual fee by earning points that are worth as much as $500 when transferred to one of Chase's travel partners.

The Chase Sapphire Reserve's annual $300 travel credit effectively lowers the annual fee to $250 for most travelers, making it a more affordable option.

If you're able to use the $300 travel credit and earn points through travel purchases, you can easily justify the annual fee, especially if you travel enough to get your money's worth out of the airport lounge access.

The Chase Sapphire Reserve Card has great benefits like lounge access and built-in travel insurance, which can save people money, making it a worthwhile investment for those who can take advantage of them.

A unique perspective: Chase Sapphire Reserve Qualifications

You can check your Chase Sapphire Reserve $300 travel credit by looking at the Benefits & Redemptions Overview section, which will give you a snapshot of how much credit you've used and when it automatically resets.

The credit will automatically reset on your cardmember anniversary, and you'll also get information on any remaining balance.

If you're not satisfied with your current Chase Sapphire Reserve card, you can change it to a Sapphire Reserve by calling the number on the back of your card and speaking with a credit analyst. They can guide you through the process and let you know if there are any issues.

Curious to learn more? Check out: Chase Sapphire Travel Credit

You can check your Chase Sapphire Reserve $300 travel credit by looking at the Benefits & Redemptions Overview section, where you'll find a snapshot of how much credit you've used and when it automatically resets.

The credit will automatically reset on your cardmember anniversary, and you'll also see any remaining balance.

If you're considering changing your credit card, don't worry if your application gets rejected - you can still call Chase and ask to speak with a credit analyst.

They might not be able to reconsider your application, but you can still ask about switching to a different card, like changing your Sapphire Preferred to a Sapphire Reserve.

If you're approved for the new card, you can continue to use your old card in the meantime, earning 3X points in bonus categories and enjoying the $300 travel credit.

You'll even get the new card in the mail, usually via UPS, and you won't lose any benefits by switching.

Check this out: Is the Chase Sapphire Reserve Card Worth It

The concept of "empty" can be a bit tricky to grasp, especially when it comes to financial products. The Chase Sapphire Reserve card, for example, has a high annual fee.

If you're considering applying for this card, be aware that it requires a high credit score. This can be a significant hurdle for some people.

The benefits of the card, such as earning 60,000 bonus points, may not outweigh the costs for those who can't qualify for it.

Suggestion: Chase Sapphire International Travel