Chase Revamps the Sapphire Preferred and Sapphire Reserve Credit Cards for the Better

Chase recently announced it will be revamping the earnings structure and some benefits of its Sapphire Preferred and Sapphire Reserve credit cards.

For the most part, these changes are a positive for cardholders and those considering applying for these cards…especially the Sapphire Preferred.

And the biggest positive of all is that according to Chase, the annual fees for each card will not change.

The upgraded benefits are slated to go into effect August 16, 2021, for both new and existing cardholders.

Here are the changes Sapphire Preferred and Reserve cardholders will have available. Details courtesy of businesswire.com’s article.

Chase Sapphire Preferred

5x total points on all travel purchased through Chase Ultimate Rewards
3x points on dining, including eligible delivery services, takeout and dining out (previously 2x)
3x points on select streaming services
3x points on online grocery purchases (excluding Target, Walmart and wholesale clubs)
$50 Annual Credit on hotel stays purchased through Ultimate Rewards. New cardmembers will start earning towards the credit immediately and existing cardmembers will start earning after their next account anniversary.
10% Anniversary Point Bonus. Each account anniversary, cardmembers will earn bonus points equal to 10% of total purchases made the previous year. That means, $25,000 in spend will earn an additional 2,500 bonus points.

The previous 2x points on travel purchases (which is a very generous definition that includes hotels, airlines, car rentals, Uber, Airbnb, etc.) will remain.

And, of course, the ability to get 25% more value when using Ultimate Rewards points to redeem for travel via the Chase Ultimate Rewards Travel Portal stays as-is, as well.

As mentioned earlier, the annual fee continues to be $95.

But, with some of the new benefits, the annual fee becomes a bit more tolerable. The $50 annual hotel credit (when your hotel stay is purchased through the Ultimate Rewards Travel Portal) will help to offset it somewhat. And the 10% anniversary points bonus on purchases can help, too.

While the increased points earning on certain categories makes the Sapphire Preferred more of an everyday card, it’s not quite there yet. At least in my view.

There are other cards that earn the same, or more, in the dining and streaming categories…even in the Chase portfolio…so it comes down to convenience and how much you value squeezing every point possible out of the dollars you spend.

The 3x on online grocery purchases is intriguing. It’s too bad it wasn’t on all grocery purchases, though. Guess they don’t want to encroach on the Freedom cards’ occasional quarterly 5x grocery category.

The 5x on travel purchased through the Ultimate Rewards Travel Portal mirrors the benefit now found on no-annual fee cards like the Freedom Flex and Freedom Unlimited. It’s good, but you definitely have to price shop the portal to booking with hotel, airlines, and other travel providers directly. And, keep in mind hotel and car rental status is not always recognized when bookings are made outside of a travel provider’s own site.

The best benefit the Sapphire Preferred offers also remains, and that is being able to transfer Ultimate Rewards points to various airline and hotel travel providers where outsized value can really be obtained. If you’re not familiar with this benefit, you can read about it in our post here.

Highest Sign-Up Bonus Ever

And, right now, the Chase Sapphire Preferred is offering its highest sign-up bonus ever.

You can earn 100,000 Ultimate Rewards points after spending $4,000 within the first 3 months from card approval.

When used to “purchase” travel via the Ultimate Rewards Travel Portal, that sign-up bonus is worth $1,250.

And, if used strategically by transferring to hotel and/or airline partners, you can likely obtain even more value from those points.

You can read more about the Sapphire Preferred card and apply at the link below. The link is our referral link, providing us a points bonus for every approved application. That you if you use our link to happy.

Chase Sapphire Preferred Link

Chase Sapphire Reserve

10x total points on Chase Dining purchases through Ultimate Rewards
10x total points on hotel stays and car rentals purchased through Ultimate Rewards
5x total points on air travel purchased through Ultimate Rewards
In addition to earning points, later this year Reserve cardmembers will have access to “Reserved by Sapphire,” featuring exclusive opportunities to book reservations at some of the most sought-after restaurants across the country including Canlis in Seattle, WA, Redbird in Los Angeles, CA, SingleThread Farms in Healdsburg, CA, Reverence in New York, NY and One Off Hospitality in Chicago.

The Sapphire Reserve continues to offer:

3x points on dining and travel

$300 annual travel credit

$100 application fee credit for Global Entry or TSA Pre-Check

And, the Sapphire Reserve continues to provide 50% more value when Ultimate Rewards points are redeemed for travel via the Ultimate Rewards Travel Portal.

The 1:1 transfer of Ultimate Rewards points to travel partners remains, too, as a benefit of the Sapphire Reserve.

The annual fee for the Sapphire Reserve remains $550.

The added benefits associated with the Reserve card are not quite as intriguing as the Preferred’s. Obviously, Chase is pushing the Ultimate Rewards Travel Portal with these increased points earning opportunities. Just be aware of the downsides to using the Portal for cash bookings.

Chase has announced they are opening airport lounges in the coming weeks and months. The Chase Sapphire Lounge by The Club will start with locations in LaGuardia’s (LGA) Terminal B, Boston Logan’s (BOS) Terminal B to C Connector and Hong Kong’s (HKG) Terminal 1. Exact opening dates and additional lounge locations will be announced over time.

The Chase Sapphire Reserve card will provide complimentary access to the Chase Sapphire Lounge by The Club lounges in addition to Priority Pass lounges via the complimentary Priority Pass Select membership.

The Sapphire Reserve is currently offering a sign-up bonus of 60,000 Ultimate Rewards points after spending $4,000 within the first 3 months from card approval.

Sign-Up Bonus Comparison

The Sapphire Preferred, with its 100,000 points sign-up bonus, is the better card to go for right now.

And, you can product change to the Sapphire Reserve from the Sapphire Preferred as long as you have a $10,000 credit line or higher.

You’ll immediately have access to the Reserve’s benefits and earning structure upon the change, and will be charged the $550 annual fee a few months (up to 6, possibly) after the change.

And, considering the Sapphire Reserve’s approval requirements tend to be a bit more difficult, starting with the Sapphire Preferred and product changing to the Reserve is a better way to go for some.

If you’ve had Sapphire cards in the past, keep in mind Chase’s 48-month restriction for getting a new sign-up bonus. If you currently have a Sapphire card (any), you cannot get another Sapphire card. And, if you have received a sign-up bonus for any Sapphire card in the previous 48 months, you won’t be eligible for the sign-up bonus.

Wrap Up

Chase has revamped its Sapphire Preferred and Reserve credit cards.

Both the earnings structure and some benefits have been changed, and most cardholders will benefit.

Luckily, there will be no change to the annual fees of either card as a result of these changes.

While there are positive changes to both cards, the Sapphire Preferred does seem to be the winner when it comes to overall benefits and earnings.

What do you think? Are you happy with the Sapphire changes?