Tuesday, September 27th, 2016, 8:18 pm
On Additional Sapphire Reserve Cards Without A Fee And Keeping Sapphire Reserve For Additional Years; Earning $4,250 In Travel Credit
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Related posts (Read these first):
–Chase’s Highest Ultimate Rewards Signup Bonus Ever: Sapphire Reserve 100,000 Point Bonus Is Now Live; Get $2,100 In Travel!
-What Should You Do With Your Sapphire Preferred Card After Getting A Sapphire Reserve Card?
-On The Topic Of Chase 5/24
-Expedite Your 100,000 Point Sapphire Reserve Signup Bonus; Can You Get The Signup Bonus With Only $3,700 In Spending?
Sapphire Reserve mania is everywhere. I still get Bloomberg Businessweek for free thanks to combining a few magazine subscriptions from this deal and there it is on this week’s front cover. When dollar coins from the Mint made the front page of the WSJ we all knew that it would come to an end, so I’m not sure how I feel about the cover story…
At any rate, I’d like to tackle a couple of common questions with the Sapphire Reserve.
People often ask me about the $75 additional cardholder fee. And it’s true, this is indeed a disadvantage compared to Sapphire Preferred which has free additional cardholders.
Both myself and my wife signed up for our own Sapphire Reserve cards, so we have no need for an additional user card. It was a no-brainer for both of us to signup. In our first cardmebership year (August 2016-2017) we’ll pay $900 in annual fees, but we’ll get a total of 200,000 bonus points that are worth at least $3,000 of travel credit (though likely much more than that by transferring those points into miles). Additionally we’ll get $1,200 in automatic travel refunds for airfare, car rentals, hotels, Airbnb, campgrounds, cruises, trains, buses, subways, Uber, Lyft, taxis, limos, ferries, bridges, tolls, E-ZPass, parking, and more. You can even buy airline or hotel gift cards or just prepay your E-ZPass account to trigger the credit. The $1,200 is made up of $300 in credits on each of cards in 2016 and then another $300 of credits on each card in 2017.
Chase even awards 900 points for that $300 in spending despite it being refunded. That’s another 3,600 in bonus points on free spending between our 2 cards, good for at least $54 in free flights.
Between our 2 cards that’s a minimum of $4,250 in travel credit in our first cardmembership year. That’s well worth paying $900 in annual fees. And that’s not even counting the triple points on travel and dining, the Priority Pass lounge membership, the 5 year Global Entry membership, and the ability to redeem all Chase points for 1.5 cents towards travel, including on cards like Freedom Unlimited where you earn 1.5 points per dollar everywhere (effective 2.25% minimum rebate everywhere) or Freedom/Ink cards that can earn 5 points per dollar (effective 7.5% minimum rebate in select categories).
The reason that Sapphire Reserve has a $75 additional cardholder fee is to cover the primary Priority Pass membership that each additional cardholder receives. With Chase’s Priority Pass membership you can bring unlimited guests with you into the lounge for free.
If your additional cardholder travels with you then it’s not worth paying the $75 as they can enter as your guest. But if they travel by themselves it can make sense to pay the $75.
If you just need an extra Sapphire Reserve card for travel and dining spending you can get a duplicate card by just calling Chase and asking for an extra metal or plastic version of the card.
Or if you still have the old Chase.com interface you can request a replacement card online. I have 2 Chase logins, 1 only has my personal accounts and has been upgraded to the new interface. The other login has both my personal and business accounts and still uses the old interface. After logging in to an account with the old interface just click on “Customer Center” and then “Card replacement:”
I haven’t been able to find that option in the new Chase.com interface.
I now have 2 identical Sapphire Reserve cards in my name that both work, no $75 fee required. Even if a store asks for ID, Visa does not allow a store to refuse to swipe your credit card if you refuse to show it…
Another common question is whether it’s worth keeping the Sapphire Reserve for subsequent years.
Chase has done a good job making a strong value proposition to keep the card despite its $450 annual fee.
My 2nd cardmembership year will run from August 2017-2018. In 2018 I’ll get another $300 in travel credits. Chase also awards 900 points for that $300 in spending, so that’s $313.50 of annual credit.
The credit will apply in every subsequent cardmembership year and it makes the effective annual fee just $136.50 per year. That’s only $41.50 per year more than Sapphire Preferred and is a bargain considering what you get for that.
If you spend $233 per month on travel and dining you’ll already pay for that difference in the annual fee thanks to the 3 points per dollar awarded with Sapphire Reserve compared to 2 points per dollar with Sapphire Preferred. That level of spending means an extra 2,800 annual points that are worth at least $42 thanks to the minimum 1.5 cents per point travel redemption value if you have a Sapphire Reserve card.
Of course the additional benefits are much more than just the extra point per dollar. You also get the lounge membership with unlimited guesting, the Global Entry credit every 4 years, and the ability to use all of your Chase points for 1.5 cents each towards travel.
Other Sapphire Reserve benefits include roadside assistance, free trip cancellation insurance, primary CDW insurance, rental car discounts, price protection, return protection, purchase protection, warranty protection, lost luggage Protection, trip delay protection, baggage delay protection, travel accident insurance, and Visa Infinite Concierge. You can read more about those here.
As always you can transfer points to someone else in your household, so if one person in the household uses cards like Freedom, Freedom Unlimited, and Ink to earn between 1.5-5 points per dollar everywhere they can transfer those points to the another person in the household who has a Sapphire Reserve to transfer into miles or use at a value of 1.5 cents each. And you even can get extra Sapphire Reserve cards to earn 3 points per dollar for travel and dining purchases without paying the $75 annual fee as shown above.
I’m just hoping that these levels of benefits will be sustainable despite the mainstream media coverage…
Have you signed up for a Sapphire Reserve yet?