Is the Chase Sapphire Reserve Worth the Annual Fee?

The Chase Sapphire Reserve has become the go-to card of pretty much every 22-35 year old I know. With a $450 annual fee the cost to have one is steep - the most I’ve ever paid for a credit card and ever will. Even after the $300 annual travel credit the card is still the costliest one in my wallet. If, like me, you’ve been reading a lot about the card and wondering whether or not you should get one (even at the reduced bonus points), let’s consider the pros and cons of having a Chase Sapphire Reserve:

Super limited transferability

Pro - High reward value.

Some analysts have been reporting that the value of rewards that you can obtain with the Chase Sapphire Reserve is significantly better than other cards in it’s luxury/reserve market. Yahoo Finance cited a Barclay’s analysis that you can earn up to $100 more by using the Chase card compared to others.

Con - Reward usage is limited

The “Ultimate Rewards” that you get with the Sapphire Reserve is extremely limited as to the airlines or hotels that they can be transferred to. Right now only British Airways, United, KLM/FlyingBlue, Korean Air, Singapore Airlines, Southwest, and Virgin Atlantic. If you don’t frequent one of these programs, or one of the 5 supported hotel programs, you’re stuck using Chase’s Ultimate Rewards program.

Pro - Access to airport lounges.

My Priority Pass card now sits permanently with my passport

I finally had the chance to use the “Priority Pass Select” card (you have to apply for and carry this around separate from your credit card) to use the airport lounge. I’ve gone on 2 international trips to 4 countries since receiving my card, so what took so long? Well lounge access is severely limited. In my home airport of JFK there is only one Terminal (out of 10) that the Priority Pass card can be used. That said lounges are sweet, you can relax and save money on food and drinks before your flight and Priority Pass seems to be the only one to support multiple brands of lounges.

Con - Ultimate Rewards is a rip-off

The point to dollar value is decent enough. 100,000 points will net you $1,200 to use towards an airline ticket booked through Ultimate Rewards. The available airlines, however, is again severely limited to those same brands you can transfer your rewards too. Additionally 100,000 points on most other programs can get you a ticket that would otherwise cost $6,000 and up, which makes using the Chase ultimate Rewards program a huge reduction in your point purchasing power, nevermind the fact that flights are often more expensive to begin with on their site.

Pro/Con - TSA Pre-Check and Global Entry passes included

While you’re eligible to receive a credit for the application fees to get TSA Pre-Check or a Global Entry card (pro) the process to get either of these is arduous at best. You have to be able to either drive to the airport for your appointment (and pay $30+ to park at JFK for an hour) or have enough time before a flight to stop by to get your paperwork filled out and approved. I haven’t witnessed a significant benefit to having either.

So is the Chase Sapphire Reserve worth the annual fee? Probably not. Unless you’ve invested heavily in one of the other Chase travel partners (British Airways, United, IHG Hotels) then you end up stuck getting less value for your hard earned rewards. For me it’s a definite no, I won’t be renewing this card next year.