By now you’ve all heard the news: Chase is implementing new restrictions around sign-up bonuses for the Sapphire Reserve card. Chase used to distinguish between these two cards as separate products, so if you had one, you were still eligible for the other card’s sign-up bonus. Not anymore.
Game Changers
Going forward, they are considered the same product so if you picked up a Sapphire Reserve, you cannot get the sign-up bonus for the Sapphire Preferred. At least not unless you cancel that card and wait 24 months. No doubt, the massive financial loss lead Chase to this decision. Now the question is, if you’re a current Sapphire Preferred cardholder, should you upgrade to the Sapphire Reserve, sans sign-up bonus?
Preferred v Reserve
I’ve given the Sapphire Reserve my share of grief, but the fact is that for most people, it’s a better option than the Sapphire Preferred. If you factor in the annual $300 travel credit, the difference in annual fees is just $55. That’s minuscule compared to the other benefits Sapphire Reserve cardholders get: A $100 Global Entry/TSA PreCheck application fee credit every four years, Priority Pass Select membership, 3x points on travel and dining, and 50% more value on points redeemed through Ultimate Rewards Travel. That all sounds fine and dandy but you’re probably wondering whether these perks make it worth upgrading to a Sapphire Reserve with no sign-up bonus.
Your Options
There are two choices here: Cancel your existing Sapphire card, wait 24 months after your card bonus post date and then apply for the Sapphire Reserve. Or you can simply upgrade your Sapphire Preferred card to a Reserve in order to access the benefits sooner. Which option is best really depends on the benefits you’re going to take advantage of and how much.
If you plan on redeeming enough points through Ultimate Rewards Travel for the 50% bonus to off-set the sign-up bonus, then it might make sense. How much would you have to redeem in order to make up for the 50,000 point sign-up bonus? At least 200,000 points. At that rate you would save 50,000 points over the Sapphire Reserve. If you can utilize the 50% bonus to this extend, you might be better off foregoing the sign-up bonus and upgrading to the Sapphire Reserve.
In any case, it makes sense to do the math and figure out which option works best for you. Based on your travel needs and redemption patterns. For some folks, upgrading without a sign-up bonus makes absolute sense because they’ll get tons of use out of the 50% bonus on Ultimate Rewards redemptions. Others might find it more prudent to cancel their existing card and wait until they’re eligible for a new sign-up bonus.
Anyway, I want to hear from you: What are your plans now that Chase has implemented these stricter rules regarding sign-up bonuses for the Sapphire Cards? Are you planning to upgrade from a Sapphire Reserve to Preferred? Or will you close your account and wait until you qualify for a Sapphire Reserve sign-up bonus?
Written by Frugal Travel Guy @ https://www.frugaltravelguy.com
Written by Frugal Travel Guy @ https://www.frugaltravelguy.com