The two Chase Sapphire cards and what sets them apart
Chase offers two Sapphire cards: the Sapphire Preferred and the Sapphire Reserve. The Preferred has an annual fee of $95 and earns 2 points per dollar on travel and dining purchases, plus 1 point per dollar on everything else. The Reserve costs $550 per year and earns 3 points per dollar on travel and dining, plus 1 point per dollar on other purchases.
The Reserve includes a $300 annual travel credit that offsets part of the fee, while the Preferred does not. Both cards let you transfer points to airline and hotel partners at a 1-to-1 ratio, and both offer trip cancellation insurance, lost luggage reimbursement, and emergency medical and dental coverage while traveling.
Which card makes sense depends on how much you spend on travel and dining each year. If you spend less than $20,000 annually on those categories, the Preferred's lower fee usually costs you less. If you spend more than that, the Reserve's higher earning rate and travel credit often come out ahead, even with the higher annual fee.
Key Takeaways
- The Sapphire Preferred charges $95 per year and earns 2 points per dollar on travel and dining; the Sapphire Reserve charges $550 per year and earns 3 points per dollar on the same categories.
- The Reserve includes a $300 annual travel credit that reduces the net cost of the annual fee to $250.
- Both cards let you transfer points to over 40 airline and hotel partners, which often gives you more value than redeeming points for cash.
- Both cards include trip cancellation insurance, emergency medical coverage abroad, and lost luggage reimbursement at no extra cost.
- The Preferred makes financial sense if you spend under $20,000 per year on travel and dining; the Reserve typically pays for itself if you spend more than that.
How points work and what they are worth
Both Sapphire cards earn Chase Ultimate Rewards points, which you can use in three ways. You can redeem them for cash back at a fixed rate (usually 1 cent per point). You can book travel directly through the Chase travel portal and get a higher value (usually 1.25 cents per point for the Preferred, 1.5 cents per point for the Reserve). Or you can transfer them to airline and hotel partners at a 1-to-1 ratio.
The transfer option is where the real value lives for frequent travelers. If you transfer 50,000 points to an airline partner, you might book a flight that would cost $1,000 in cash — meaning each point is worth 2 cents. But this only works if you actually use airline and hotel partners and know how their award charts work. If you never transfer points, you are better off redeeming for cash or through the Chase portal.
Points never expire as long as your account stays open, so you can hold them until you have enough for a valuable redemption. If you close the card, you keep the points in your Chase Ultimate Rewards account as long as you have at least one other Chase card that earns Ultimate Rewards points.
Travel protections and insurance included
Both cards include trip cancellation insurance, which reimburses you up to $10,000 per person if you have to cancel a prepaid trip for a covered reason — illness, injury, death of a family member, or job loss. You must have purchased the trip with the card to be covered. The insurance does not cover cancellations due to pandemics or travel warnings that existed before you booked.
Both cards also cover lost luggage reimbursement up to $2,500 per person if an airline loses your checked bags. You have to file a claim with the airline first and get a written report of the loss before Chase will reimburse you. Emergency medical and dental coverage abroad is included too — up to $250 for dental and $500 for medical — but this only covers emergencies that happen while you are traveling, not routine care.
The Reserve adds trip delay reimbursement, which covers meals and lodging if your flight is delayed more than 12 hours or you miss a connection. The coverage is up to $300 per person per trip. The Preferred does not include this benefit.
The $300 travel credit on the Reserve
The Sapphire Reserve's $300 annual travel credit is not automatic — you have to use it. The credit covers any purchase classified as travel by the merchant, which includes flights, hotels, rental cars, taxis, rideshares, parking, tolls, trains, buses, and cruises. It also covers some travel-related services like luggage shipping and travel insurance you buy through a third party.
The credit resets every calendar year on January 1st. If you do not use it by December 31st, it disappears — Chase does not carry it forward or give you cash back for the unused portion. You can use it multiple times throughout the year; the card straightforward tracks your spending and deducts the credit automatically when you hit $300 in travel purchases.
If you travel regularly and spend at least $300 per year on travel, this credit effectively reduces your annual fee from $550 to $250. If you travel less than that, the credit may not offset the full fee, and the Preferred becomes the better choice.
Comparing the earning rates in real numbers
Here is how the two cards compare on a concrete annual spend scenario. Assume you spend $15,000 per year on travel and dining, and $5,000 on other purchases.
| Sapphire Preferred | Sapphire Reserve | |
|---|---|---|
| Travel and dining points | $15,000 × 2 = 30,000 points | $15,000 × 3 = 45,000 points |
| Other purchases points | $5,000 × 1 = 5,000 points | $5,000 × 1 = 5,000 points |
| Total points earned | 35,000 points | 50,000 points |
| Annual fee | $95 | $550 (minus $300 travel credit = $250 net) |
| Net cost after fee | $95 | $250 |
| Extra points earned with Reserve | — | 15,000 points |
At this spending level, the Reserve earns 15,000 extra points per year. If you redeem those points through the Chase portal at 1.5 cents per point, that is $225 in value — which nearly covers the $250 net annual fee. If you transfer points to airline partners and get 2 cents per point value, the 15,000 extra points are worth $300, which exceeds the net fee. At higher spending levels, the Reserve advantage grows.
Who should get the Preferred, and who should get the Reserve
Choose the Sapphire Preferred if you travel occasionally but do not spend heavily on travel and dining. The $95 annual fee is easier to justify if you are earning points on $10,000 to $20,000 per year in those categories. The card is also a good fit if you want to transfer points to airline partners but do not want to pay for premium benefits you will not use.
Choose the Sapphire Reserve if you travel frequently, spend more than $20,000 per year on travel and dining combined, or value the insurance and concierge benefits enough to justify the higher fee. The $300 travel credit makes the net fee $250, and the higher earning rate (3 points per dollar instead of 2) means you accumulate points faster. The Reserve also includes a concierge service that can book travel and make restaurant reservations for you.
If you are not sure which card fits your spending, calculate your annual travel and dining spend first. If it is under $15,000, the Preferred is almost certainly the better choice. If it is over $25,000, the Reserve usually wins. In the $15,000 to $25,000 range, the decision depends on whether you value the extra insurance and concierge service enough to justify the higher fee.
How to use points for maximum value
The highest-value use of Sapphire points is transferring them to airline and hotel partners. Chase partners with over 40 airlines and hotels, including United, Southwest, American, Delta, Hyatt, IHG, and Marriott. When you transfer points, you move them at a 1-to-1 ratio — 50,000 points become 50,000 airline miles or hotel points.
The value you get depends on the partner's award chart and current availability. A flight that costs 50,000 miles might be worth $500 to $1,000 in cash value, depending on the route and how far in advance you book. Hotel stays vary even more — a night at a luxury property might be worth $300 to $500 in points, while the same points might book a budget hotel for $100.
Before you transfer points, research the partner's award chart and search for the specific flight or hotel you want. If you cannot find good value, redeem through the Chase portal instead (1.25 cents per point for Preferred, 1.5 cents per point for Reserve) or take cash back. Do not transfer points just because the option exists.
Frequently Asked Questions
Can I have both the Sapphire Preferred and Sapphire Reserve at the same time?
No. Chase's rules prevent you from holding both cards simultaneously. You can switch from one to the other, but you must close one before opening the other. If you want to switch, call Chase and ask about a product change, which moves your existing account to the new card without closing it.
What happens to my points if I close the card?
Your points stay in your Chase Ultimate Rewards account as long as you have at least one other Chase card that earns Ultimate Rewards points. If you close all your Chase Ultimate Rewards cards, your points expire within 30 days. Before closing a card, transfer your points to an airline or hotel partner, redeem them, or move them to another Chase card.
Does the $300 travel credit cover everything travel-related?
The credit covers most travel purchases: flights, hotels, rental cars, taxis, rideshares, parking, tolls, trains, buses, and cruises. It also covers travel insurance and luggage shipping. It does not cover meals, entertainment, or shopping while traveling — only the transportation and lodging itself.
How long does it take to earn enough points for a free flight?
It depends on the flight and your spending. A domestic flight typically costs 25,000 to 50,000 airline miles. If you spend $5,000 per month on the Preferred, you earn 10,000 points per month on travel and dining, so you could earn 50,000 points in five months. International flights cost more — often 60,000 to 100,000 miles — and take longer to accumulate.
Is the annual fee worth it if I do not travel much?
Probably not. If you travel less than four times per year or spend under $10,000 annually on travel and dining, the annual fee is hard to justify. A basic cash-back card with no annual fee might serve you better. The Sapphire cards are designed for people who travel regularly and want to maximize rewards on those purchases.