Justifying the Cost of Premium Credit Cards
Annual fees for premium credit cards can, at times, feel a bit excessive. Yet, I’ve held onto one specific card—my Chase Sapphire Reserve®—for almost a decade. I got it when it first came out in 2016 and, honestly, I’ve never considered canceling or downgrading.
Now, nearly ten years since its launch, the Sapphire Reserve has undergone a significant update. This includes increased annual fees, additional charges, revamped benefits, and a brand-new design.
The new eye-catching fee of $795 makes it the priciest card, surpassing even the American Express Platinum Card, which sits at $695. Despite these big changes, I’m still planning to keep my Sapphire Reserve, and here’s why.
Flexible $300 Travel Credit
When I heard about the updates to the Sapphire Reserve, my primary concern was losing the flexible $300 travel credit or having limitations on how to use it. But, thankfully, my worries were misplaced; many other issuers do impose such restrictions on their travel credits.
For example, the Capital One Venture X Rewards card offers a $300 travel credit, but it’s only applicable if you book through the Capital One Travel portal. This sometimes makes it pricier and limits the benefits compared to booking directly.
Thanks to Chase’s broad definition of travel, their $300 credit is one of the most useful offerings from any premium card. I mean, I even booked a bush flight with a tour operator in Tanzania to get to Serengeti National Park, and within days, I received my $300 credit just for using the Sapphire Reserve. This flexibility essentially reduces the annual fee to $495 for me.
Better Return Rates
Since I got this card nearly ten years back, I’ve always appreciated its ability to earn points. The Sapphire Reserve includes a diverse range of dining categories, from fast food to fine dining, and even allows for bonus points while traveling.
With the new rates, I can now earn up to 8 points per dollar for bookings through Chase Travel, which is fantastic. Although, yes, I find it a little disheartening that other travel expenses earn only one point per dollar, my overall spending still fits well within the new structures. The vast majority of my travel costs come from airfare and hotel bookings, which I typically book directly.
New Statement Credits
I’ll admit, the $795 annual fee can be a tough pill to swallow, especially when combined with other card fees I manage. However, the new statement credits provided by the Sapphire Reserve help mitigate that increase.
Alongside its already useful $300 travel credit, there will now be up to $500 in statement credits for bookings made via Chase Travel, which really enhances its value. Additionally, hotel credits of up to $200 (for prepaid bookings) will now be offered, but there is a minimum stay of two nights required.
Innovative Dining and Lifestyle Credits
The new dining and lifestyle credits stand out, especially when compared to what the Amex Platinum offers. They include:
- StubHub or Viagogo Credits: Up to $300 in annual statement credits for concert and event tickets.
- Meal credits: Up to $300 in dining statement credits at exclusive Sapphire Reserve tables.
- Apple TV+ and Apple Music credits: Worth up to $250 for subscriptions, provided you activate via Chase.
Incorporating these new credits provides a strong justification for the higher fees. While it would be great to see some kind of entertainment credit added, I am nonetheless excited about the meal credits—especially since I already have a premium Spotify account. If I can switch to Apple Music at no extra cost, that would be a win.
Final Thoughts
I genuinely enjoy the perks that come with premium credit cards, and the Sapphire Reserve is still a cornerstone in my wallet. Even though the recent changes are substantial, they feel balanced, particularly during a time when many issuers are tightening their offerings. I’m looking forward to sticking with the Sapphire Reserve for another ten years.
