Chase Makes Its Higher-End Travel Rewards Cards More Attractive – and Useful – During the Coronavirus Pandemic
I do my best to make credit cards, and the rewards structures they offer, work for me.
I understand that not everyone can do that. Many use credit cards as a loan vehicle, to pay over time for items that are needed, or for some, wanted, when the cash to pay in full is not available. If you fall into that category, paying down your amount owed is the primary goal. Utilizing credit card rewards can come once your card balances are zero.
For those who are able to benefit financially from strategic use of credit cards, Chase has just announced changes to its higher-end travel rewards cards that make them useful during the coronavirus pandemic.
Chase Credit Card Changes
The changes apply to the Chase Sapphire Reserve and the Chase Sapphire Preferred credit cards.
Both of which are great cards to use for travel.
Unfortunately, right now travel is far down the list of to-do items for many cardholders.
In fact, my wife held the Chase Sapphire Reserve card, and with no travel planned in the coming months, decided to product change to the no annual fee Chase Freedom Unlimited when the $550 annual fee hit last month.
And I’m sure many cardholders did the same since the value proposition of the Sapphire Reserve just wasn’t there with travel all but non-existent.
So Chase has added temporary benefits that will provide value even without travel.
Chase Sapphire Reserve
The annual fee has been reduced to $450 for renewals July 1 – December 31, 2020.
Most Reserve cardholders had been offered a $100 statement credit offsetting the $550 annual fee for renewals April 1 – June 30, 2020.
This change ensures the lower $450 annual fee will be automatically available to all cardholders with renewals through the end of 2020.
The key benefit of the Sapphire Reserve card was/is its $300 annual travel credit, which offsets a wide variety of travel charges from Uber rides to hotel charges to airline tickets and much more…charges which just aren’t being made right now.
So Chase has expanded what will qualify for the $300 statement credit to purchases at grocery stores and gas stations. This change starts June 1 and runs through December 31, 2020.
And, cardholders will be able to redeem Ultimate Rewards points at 1.5 cents per point towards spend at restaurants, grocery stores and home improvement stores.
If money is an issue due to a furlough, loss of income or outright job loss, this higher redemption rate can help to offset everyday purchases if you have a balance of Ultimate Rewards points available.
Chase Sapphire Preferred
The lower-end sibling of the Reserve card, the Preferred, has been given a temporary makeover as well, to make it more appealing during the pandemic.
Starting May 31 through September 30, 2020, cardholders can redeem Ultimate Rewards points at 1.25 cents per point as a statement credit on restaurant, grocery store and home improvement store spend.
Again, providing a way to utilize Ultimate Rewards points to offset spend at categories that may be more needed right now.
Bonus Earning and Benefits
As a reminder from our post earlier this month, both the Sapphire Reserve and Preferred received increased Ultimate Rewards points earning on grocery purchases.
Reserve – 5 points on the first $1,500 spend each month on groceries through June 30.
Preferred – 3 points on the first $1,500 spent at grocery stores through June 30.
And, from previous changes/partnerships, the cards offer these benefits:
Reserve – $60 annual DoorDash food delivery service credit (one $60 credit in 2020 and one in 2021) and a free DoorDash DashPass membership for a year. And, Lyft benefits and increased earning through March 2022.
Preferred – DoorDash DashPass membership (discounted delivery fees) for one year and increased Lyft earning through March 2022.
Wrap Up
It’s nice to see Chase making changes to its credit cards that will allow cardholders to continue to obtain value during this difficult time.
Lowering the Reserve’s annual fee and allowing the extremely valuable $300 travel credit to be used on spend categories that are more appropriate right now is a nice move.
And, allowing Ultimate Rewards points to be used at higher redemption rates on categories other than travel makes the traditionally travel-focused cards a good option should offsetting everyday-type spend be needed.
I just wish Chase had announced these changes a bit earlier. It’s likely my wife would have kept the Reserve card, and its higher Ultimate Rewards earning structure, rather than downgrading to the Freedom Unlimited.
How about you? Do these changes keep you a Reserve or Preferred cardholder during these non-travel times?
