What the Chase Sapphire cards do

Chase offers two main Sapphire cards: the Sapphire Preferred and the Sapphire Reserve. Both are designed around travel and dining rewards, but they differ in annual fee, earning rates, and the perks that come with the card itself. The Preferred has a lower annual fee and works well for moderate spenders; the Reserve costs more but includes travel credits and higher earning rates if you spend enough to offset the fee.

Both cards earn points on travel and dining purchases at higher rates than everyday spending. You can redeem those points through Chase's travel portal, transfer them to airline and hotel partners, or use them for cash back. The card you choose depends on how much you travel, how much you spend annually, and whether the included benefits justify the annual fee.

Key Takeaways

  • The Sapphire Preferred charges an annual fee but earns 3 points per dollar on travel and dining, while the Sapphire Reserve charges a higher annual fee but includes a travel credit and earns 3 points per dollar on travel and 1 point on other purchases.
  • Both cards let you transfer points to airline and hotel partners, which often gives you more value than redeeming through the Chase portal.
  • The Sapphire Reserve includes benefits like airport lounge access and trip cancellation insurance, which may or may not offset its higher annual fee depending on your travel habits.
  • You can only hold one Sapphire card at a time, so you must choose between Preferred and Reserve rather than stacking both.
  • Both cards require good to excellent credit, typically a score of 670 or higher, though approval is not may provide.

Sapphire Preferred: lower fee, solid rewards

The Sapphire Preferred charges an annual fee of $95. You earn 3 points per dollar on travel purchases (including flights, hotels, rental cars, and tolls) and on dining at restaurants. You earn 1 point per dollar on all other purchases. There is no bonus category for groceries or gas.

The card includes trip cancellation insurance, emergency medical and dental coverage abroad, and lost luggage reimbursement. It does not include airport lounge access. The main appeal is the earning rate on travel and dining combined with a moderate annual fee, making it useful if you travel a few times a year and eat out regularly.

The Sapphire Preferred works best if you spend enough on travel and dining to earn back the $95 fee in extra value. If you spend $3,000 per year on these categories, you earn 9,000 points, which is worth roughly $90 to $135 depending on how you redeem them. At higher spending levels, the math improves.

Sapphire Reserve: premium benefits and higher earning

The Sapphire Reserve charges an annual fee of $550. You earn 3 points per dollar on travel and dining, the same as the Preferred. The difference is that the Reserve includes a $300 annual travel credit that offsets part of the fee, bringing your net cost to $250 per year. The card also includes airport lounge access through Priority Pass, which grants entry to over 1,400 lounges worldwide.

The Reserve includes trip cancellation insurance, emergency medical and dental coverage, lost luggage reimbursement, and concierge services. It also includes purchase protection and extended warranty coverage on may be able to access purchases. These benefits appeal to frequent travelers who use lounges regularly and want comprehensive travel insurance.

The $300 travel credit applies to purchases coded as travel by Chase, including flights, hotels, rental cars, parking, tolls, taxis, and rideshare. It does not cover airline fees or seat upgrades in most cases. You must use the credit each year or it expires; Chase does not carry it forward to the next year.

How points work and what they are worth

Both Sapphire cards earn Ultimate Rewards points, which is Chase's proprietary points currency. You can redeem points in three main ways: through the Chase travel portal, by transferring to airline and hotel partners, or for cash back.

Through the Chase portal, points are worth roughly 1 cent each, so 10,000 points equals about $100. When you transfer points to airline partners like United, Southwest, or American, the value varies by airline and how you use them. A point transferred to United might be worth 1.5 cents if you use it for a domestic flight, or less if you use it for a premium cabin seat. The best value often comes from transferring to partners and booking premium cabin seats on long flights, where points can be worth 2 cents or more each.

Cash back is the simplest option but usually the lowest value. You can redeem points for cash at a rate of 1 point per penny, or 1 cent per point. This is useful if you do not travel often or prefer simplicity over maximizing point value.

Annual fees and when they make sense

The Sapphire Preferred's $95 annual fee makes sense if you spend at least $3,000 to $4,000 per year on travel and dining combined. At that spending level, the 3x earning rate generates enough points to cover the fee and provide additional value. If you spend less, the card may not pay for itself.

The Sapphire Reserve's $550 annual fee is harder to justify unless you travel frequently. The $300 travel credit reduces the net cost to $250, but you still need to use that credit every year. If you also use airport lounges regularly, the card becomes more valuable. Frequent travelers who take 4 or more trips per year and spend heavily on travel and dining often find the Reserve worthwhile.

Both cards waive the annual fee for the first year, so you can test the card without paying the fee upfront. After the first year, you must decide whether to keep the card or close it. If you close the card, you lose any remaining points balance, so redeem your points before canceling.

Credit score and approval requirements

Both Sapphire cards require good to excellent credit. Chase typically approves applicants with a credit score of 670 or higher, though approval is not may provide and depends on your full credit profile, income, and existing Chase accounts. If your score is below 670, you are unlikely to be approved.

Chase also considers how many credit cards you have opened in the past 24 months. If you have opened more than 4 or 5 cards recently, Chase may deny your process even with a good score. This is called the "5/24 rule" in the credit card community, though Chase does not publish this rule officially.

You can only hold one Sapphire card at a time. If you currently have the Preferred and want to switch to the Reserve, you must close the Preferred first or downgrade it to a non-Sapphire Chase card. Downgrading preserves your account history and avoids closing a credit account, which can temporarily lower your credit score.

Travel perks and insurance coverage

Both cards include trip cancellation insurance, which reimburses you if you cancel a prepaid trip due to illness, injury, or death of a family member. The coverage limit is typically $10,000 per person. You must purchase the trip with the card to be covered.

Both cards include emergency medical and dental coverage if you need treatment while traveling outside your home country. This covers emergency dental work up to $500 and emergency medical care. It does not cover routine care or prescriptions.

The Sapphire Reserve includes Priority Pass lounge access, which grants entry to over 1,400 airport lounges worldwide. You can bring up to 2 guests with you. Lounge access is valuable if you travel frequently and want a quiet space to work or relax before your flight. A Priority Pass membership costs $469 per year if purchased separately, so this benefit alone can justify the Reserve's annual fee for frequent travelers.

Frequently Asked Questions

Can I have both the Sapphire Preferred and Sapphire Reserve at the same time?

No. Chase allows you to hold only one Sapphire card at a time. If you want to switch from one to the other, you must close or downgrade your current card first. Downgrading to a non-Sapphire Chase card like the Freedom Unlimited preserves your account history without closing the account.

What happens to my points if I close the card?

Your points remain in your Chase account as long as you have at least one other Chase card that earns Ultimate Rewards points. If you close all your Chase cards, your points expire after a period of inactivity. Redeem your points before closing your last Chase card to avoid losing them.

How long does it take to earn back the annual fee?

For the Preferred, if you spend $250 per month on travel and dining, you earn 750 points monthly, or 9,000 points per year. At 1 cent per point through the portal, that is $90 in value, which nearly covers the $95 fee. For the Reserve, the $300 travel credit covers most of the $550 fee when ready, but you need to use that credit each year.

Do I need to use the travel credit on the Sapphire Reserve every year?

Yes. The $300 travel credit expires at the end of each calendar year and does not carry over. If you do not spend $300 on travel in a year, you lose the unused portion. The credit applies automatically to may be able to access travel purchases, so you do not need to claim it manually.

What credit score do I need to be approved?

Chase typically approves applicants with a credit score of 670 or higher, though approval depends on your full credit profile, income, and recent credit applications. If your score is below 670, your chances of approval are low. You can check your credit score through your bank or a free service before explore.