Preferred vs. Reserve: Which Chase Sapphire card should actually be in your wallet?
A lot has changed since the viral Reserve card was introduced in 2016
Welcome to Ask The Group Chat, where every week I answer questions from my readers, trying to help you figure out the life stuff you think you’re already supposed to understand. This week’s message comes from L, who wonders if upgrading his credit card to one with a big annual fee is worthwhile.
What’s your advice on upgrading from a Chase Sapphire Preferred to Reserve? I’ve done some research online, and it’s unclear whether it’s truly worth the annual fee. - L
Since the Preferred super signup bonus (referral link) is still running a few more days, I figured it’s worth a quick dive into Reserve vs Preferred in the Chase Sapphire credit card family. My first note is, don’t overburden yourself with credit cards! I am a big fan of maximizing points strategies, but if you’re someone in debt or struggling with paying off credit cards monthly, the points aren’t worth it. However, if you’re paying off cards consistently and trying to stockpile points for a vacation, keep reading.
Let’s begin with some history for the credit card enthusiasts in the crowd. Sapphire Reserve is known as the world’s first viral credit card. When it appeared on the scene in 2016, more people signed up in two months than Chase expected in 12, and it cost JPMorgan $300 million due to the supercharged sign-on bonus of 100,000 points. It felt like an approachable luxury card and promised 3x points on travel and dining at a time when 2x was the standard. Plus, the physical card was metal, and it felt impressive when you pulled it out to pay for dinner (and had your friends Venmo you so you could collect all the points). In fact, when I did this at an iconic brunch with my friends in 2016, I inspired several people to sign up for the card on the spot. Eventually, when Citi and Amex improved their benefits on their luxury cards, the initial hype wore off. You’re now seeing Preferred (the step-down sibling) with a big bonus offer taking up that shine.
For quick comparison, the Sapphire Preferred card only requires a $95 annual fee, while the Reserve jumps you to a hefty $550 per year. On the surface, that feels like an easy answer to go Preferred because both earn the same type of points, but there are built-in benefits on the Reserve that might sway you to it.
First, you get $300 per year back on travel expenses, erasing that from your fee immediately. If you’re already taking flights or Uber/Lyft, that comes off easily in a month or two. The second big credit you get every year is $5 a month on DoorDash, if you're already using that anyway, it pays for itself. Both cards come with the DoorDash Dashpass membership, which avoids some additional food delivery fees. If you maximize those benefits, the effective annual rate for a Reserve now starts at $190 a year vs the Preferred’s $95.
With Reserve, you get a $100 credit to Global Entry every 4 and a half years (Global Entry lasts 5 years, so that's all you need), and gets you TSA Pre-Check too. In addition to specific Chase lounges at airports, you can also access select other airport lounges in the Priority Pass program. The final benefit that differentiates Reserve from Preferred is more bonus points on any travel purchases within the Chase portal. So if you book a flight directly, your points are worth 50% more. However, I caution about using points this way, as the redemptions are not always the best. I have done it myself when a flight wasn’t available with points and I didn’t want to shell out cash, so I find this as a nice-to-have vs a need-to-have option. Preferred does have one credit to its name, a $50 annual credit on hotels purchased through the portal.
If you’re already holding the Preferred and want to upgrade, there’s a strategy to get you the best points possible. I recommend you downgrade (do not cancel!) the Preferred to a no-fee Chase Freedom Unlimited and sign up as a new user for the Reserve with the current 60,000 points bonus. The no-fee card goes to the back of your wallet, and you spend with the Reserve. To make this move, you must keep a few things in mind – you can’t have more than 5 new credit cards approved from any institution in the past 24 months (the 5/24 rule), and you can’t have received a Sapphire credit card bonus in the last 48 months.
However, if you’re reading this and a new convert to Chase overall, even with the perks, I think the Preferred bonus makes Preferred the better card right now. You’re coming out ahead from the get-go, and you can pick up things like Priority Pass or Global Entry using other points credit cards like Amex Platinum. If, after two years, you’re loving Chase and want to elevate your membership, then I would do the upgrade strategy as outlined above and get whatever the bonus is then.
All this said, I got the Reserve in 2016 and have never played the downgrade/reapply game myself, so these recommendations are a “do as I say, not as I do” moment. Sure, there’s a math to maximizing credit cards, but there’s no perfect solution. Sometimes what’s in your wallet is just what you feel happiest about taking to buy the group chat dinner.
Quick Hits
The beginning of the month means your credit cards have new transfer bonuses! This is a great way to maximize your points for ideal travel redemptions. If you know you have a trip and can find a great option on these airlines, go for it. Do remember, once you transfer miles, they can’t go backwards to agnostic card points. Currently, in May 2025, we are seeing:
Chase - 5% transfer bonus to Air France/KLM Flying Blue and Virgin Atlantic Flying Club through May 31, 2025.
Citi - 30% bonus to Virgin Atlantic Flying Club and Qatar Airways Privilege Club through May 31, 2025.
Capital One - Up to 20% transfer bonus to Qantas Frequent Flyer through May 31, 2025.
During a random IG Reels scroll, I found some podcasters discussing a Japanese budget planning practice called Kakeibo. Invented by Japanese journalist Motoko Hani in 1904, it’s a ledger system that combines start-of-month planning and daily notes and observations. As a Mint girlie who has had to adjust since its closure in 2024, I’m going to dig in on this and report back!
Two media recommendations to share this week:
First, I’ve been a huge fan of Dropout TV’s content for years, but on a borrowed login (sorry!) I am happy to say I am a paying subscriber now, and they’re locking in their current rate as of today (May 7th) before a small price increase. You can stack that with a 20% off code for your first year, making it $4 a month for amazing independent comedy programming! The first three episodes of this season of Game Changer alone are worth the price of admission!
I know Nathan Fielder has a not-for-everyone quality to his work, but boy-oh-boy is his current season of The Rehearsal really for me. I can’t say too much without ruining the moments, but if you have seen Episode 3, please enjoy this interview with Evanescence’s Amy Lee about how “Bring Me to Life” might be a pivotal part of aviation history (that sentence will make way more sense after you watch the show).
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Reminder: I’m not a licensed financial advisor, and this is not financial advice. I’m just sharing my personal opinions with my group chat.