Forbes has partnered with The Points Guy for our coverage of credit card products. Forbes and The Points Guy may receive a commission from card issuers.
The Chase Sapphire Reserve made a lot of noise when it burst onto the scene in late 2016, offering a 100,000 point sign-up bonus, 3x points on travel and dining, a $300 annual travel credit, and a suite of other premium benefits. With all this excitement many people have been quick to dismiss the Chase Sapphire Preferred, the less-premium-but-still-amazing sibling of the Reserve. While both cards are incredible, they cater to distinct markets.
Here are several reasons it might make sense to pick the Preferred over the Reserve:
Lower Annual Fee
The Chase Sapphire Reserve has a $450 annual fee, and while it’s easy to earn back that much value and more over the course of the year, there’s no way to avoid paying the $450 up front. Even if you value the annual $300 travel credit at face value, that’s still $150 out out of pocket. The Sapphire Preferred, on the other hand, only costs $95 a year and the fee is waived for the first 12 months. While it’s no longer possible to get the 50,000 point bonus on both the Preferred and Reserve, it might make sense for some people to start with the free first year on the Preferred and then decide if they want to upgrade to the premium Reserve at a later point.
Same Ultimate Rewards Transfer Partners
Benefits aside, one of the biggest selling points of either Sapphire card is their ability to earn valuable Chase Ultimate Rewards points. While the Sapphire Reserve has a higher value if redeeming points directly through the Chase travel portal (1.5 cents vs 1.25 with the Preferred), I get the most value out of my Ultimate Rewards points by transferring them to travel partners. Some of my favorites include 1:1 transfers to Hyatt, United, Korean, and British Airways. You can access the same list of transfer partners and the same transfer ratio no matter which Sapphire card you have.
You Still Get Primary Rental Car Insurance
While many travel benefits differ slightly between the Sapphire Preferred and Reserve, the primary car rental insurance benefit is nearly identical. This insurance will reimburse you for damage to or loss of the vehicle as long as the cardholder is the primary renter. Rentals over 31 days or of exotic cars are excluded. While the Sapphire Reserve caps the benefit at $75,000, the Preferred covers you up to the value of the car.
No Fee for Authorized Users
There are a lot of good reasons to add an authorized user on your favorite travel rewards card. Not only will you earn miles on their purchases, but if your account is old and in good standing it will help them build credit history as well. The Chase Sapphire Preferred goes one step further and even incentivizes adding authorized users by offering a 5,000 point bonus when your authorized user makes a purchase within 3 months of account opening. Authorized users on the Sapphire Preferred are free, while the Sapphire Reserve charges a $75 fee for each additional user (although the users get some nice benefits).
Easier to Get Approved
For many people, especially those with limited credit history, the decision might boil down to the fact that the Chase Sapphire Preferred is easier to get approved for. The Sapphire Reserve requires a top-notch credit score and/or a high income, while the Preferred is anecdotally easier to get. Both of these cards are subjected to Chase’s 5/24 rule, however, which means that you will get automatically rejected if you’ve opened 5 or more cards in the last 24 months.
Chase Sapphire Preferred vs. Chase Sapphire Reserve
| Chase Sapphire Preferred | Chase Sapphire Reserve | |
| Annual Fee | $95 (waived the first year) | $450 |
| Sign-up Bonus | 50,000 points after spending $4,000 in the first three months | 50,000 points after spending $4,000 in the first three months |
| Earning Rate | 2x points on dining and travel, 1 point per dollar on everything else | 3x points on dining and travel, 1 point per dollar on everything else |
| Redemption Rate Through Ultimate Rewards Travel | 1.25 cents per point | 1.5 cents per point |
| Authorized User Fee | $0 | $75 per year per each authorized user |
Bottom Line
The Chase Sapphire Reserve is one of the hottest cards on the market, and for good reason. But if you just can’t bring yourself to pay the $450 fee, or want to dip your toes in the water before jumping in head first, the Sapphire Preferred makes a great alternative.
Forbes has partnered with The Points Guy for our coverage of credit card products. Forbes and The Points Guy may receive a commission from card issuers.
