My Chase Sapphire Reserve arrived earlier this week so I tweaked my system a little bit.
Why You Should Get a Sapphire Reserve
As long as you spend $3,667 on restaurants or travel, you will come out ahead with the Sapphire Reserve versus the Sapphire Preferred. The Sapphire Reserve has a $450 annual fee. This fee is offset by a $300 annual travel credit. The remaining delta of $150 is only $55 more per year than the Sapphire Preferred. Given that the Sapphire Reserve earns 3 points per dollar spent in restaurants and travel (vs. 2 points for Preferred) and that each point is worth a minimum of 1.5 cents, your breakeven between the cards is $55/$0.015 = $3,667.
Oh, and the Sapphire Reserve comes with a 100,000 point sign up bonus after you spend $4,000 in the first 90 days. It's a no brainer if you are on the Retire on Rewards System.
How This Changes the Retire on Reward System
I made 3 simple changes to my system as a result of this card and the impact can be big.
Given the high demand for this card, Chase was much slower than normal in approving my application and delivering the card. When this happens, just call them on the Sapphire Preferred line. The agent can get an underwriter on the phone who can approve the application on the spot. You can also ask for expedited shipping so you get the card sent via FedEx instead of snail mail. Lastly, you should remember to downgrade your Sapphire Preferred so you don't get charged the $95 annual fee. I downgraded to the Chase Freedom Unlimited since I didn't have one yet.
Questions? Comments? Tweet me @RetireOnRewards.
Retire on Rewards