topic Re: Chase Sapphire Preferred/Reserve Cards in Credit Cards

Chase Sapphire Preferred/Reserve Cards

StevieK — Wed, 08 Nov 2023 17:19:20 GMT

I am considering my first CC that will have an annual fee attached. Up until this point in time, all of my cards have had $0 annual fees.

Chase has me preapproved for both a Sapphire Preferred and a Sapphire Reserve card. The first has a $95 annual fee and a $23K credit line, the second has a $550 annual fee and a $27K line.

I have always shunned and resisted cards with annual fees, for the simple reasoning that I would be paying for something that other providers give me for free.

However, with this card - the Sappire Preferred - I will be getting $600 in rewards soon after getting the card. That means the first 6 years of fees are taken care of (that is how I am choosing to see it, anyway).

Thoughts?

Re: Chase Sapphire Preferred/Reserve Cards

PNWRambler — Wed, 08 Nov 2023 17:41:17 GMT

If the rewards on the card match your spending habits, then you can do some rough math and easily see whether the AF will be worth it or not. In my case I pay $279 in AF's between 3 cards, and I make far more than that back on rewards between all my cards. I got $2,750 last year and I just broke $2,000 for this year in rewards redeemed so far. If your spending habits change and its no longer worth it then you can always cancel. I consider a SUB as a factor as well.

On the other hand - I have had my eye on the AmEx Platinum for a while and that one I still cannot justify because, although I travel for work often and would like access to the lounges, I don't book my own hotels or flights which is the majority of reward points for that card.

Re: Chase Sapphire Preferred/Reserve Cards

ptatohed — Wed, 08 Nov 2023 18:05:13 GMT

@StevieK wrote:
I am considering my first CC that will have an annual fee attached. Up until this point in time, all of my cards have had $0 annual fees.

Chase has me preapproved for both a Sapphire Preferred and a Sapphire Reserve card. The first has a $95 annual fee and a $23K credit line, the second has a $550 annual fee and a $27K line.

I have always shunned and resisted cards with annual fees, for the simple reasoning that I would be paying for something that other providers give me for free.

However, with this card - the Sappire Preferred - I will be getting $600 in rewards soon after getting the card. That means the first 6 years of fees are taken care of (that is how I am choosing to see it, anyway).

Thoughts?

I would say that you either want the cards or you don't. Getting a card with a $100 AF and a $600 welcome offer, yes, I guess, means the card is free for 6 years. But what's the point? Net zero. One could argue you lost $500 by not cancelling after the first year. Will you be using these cards and obtaining benefits/rewards from them? How much value, annually, do you think each card will provide you?

Re: Chase Sapphire Preferred/Reserve Cards

Anonymous — Wed, 08 Nov 2023 18:22:39 GMT

@ptatohed wrote:
I would say that you either want the cards or you don't. Getting a card with a $100 AF and a $600 welcome offer, yes, I guess, means the card is free for 6 years. But what's the point? Net zero. One could argue you lost $500 by not cancelling after the first year. Will you be using these cards and obtaining benefits/rewards from them? How much value, annually, do you think each card will provide you?

Right, I have argued against the "pay annual fee for X years" because it might create the wrong mindset. As soon as you get the SUB it's yours (well, maybe after a year for Amex and some others). So, then each year just ask "Is this card worth the next AF"

Generally, get cards that are of use to you. Not to say that it's wrong to get cards just for big SUBs and close when you can, but there are slight risks. I

Re: Chase Sapphire Preferred/Reserve Cards

Blender — Wed, 08 Nov 2023 19:28:12 GMT

Yeah, your post just kinda dropped off towards the end. As someone taught me before (with the X1 card), dont app just for credit limits. The SUB is nice (there have been better), but you failed to mention what value this card brings you beyond those two things.

These have been goal cards of mine since the start of my rebuild, but I dont travel for work anymore, I live in a vacation spot, and rarely use hotels, so sadly Im no longer seeing as much value in having them outside of ego/ goal purposes.

Re: Chase Sapphire Preferred/Reserve Cards

Aim_High — Wed, 08 Nov 2023 20:30:06 GMT

@Anonymous wrote:

Generally, get cards that are of use to you. Not to say that it's wrong to get cards just for big SUBs and close when you can, but there are slight risks. I

I think we lost @Anonymous mid-sentence.

Re: Chase Sapphire Preferred/Reserve Cards

Aim_High — Thu, 09 Nov 2023 03:35:25 GMT

@StevieK wrote:
I am considering my first CC that will have an annual fee attached. Up until this point in time, all of my cards have had $0 annual fees.

Chase has me preapproved for both a Sapphire Preferred and a Sapphire Reserve card. The first has a $95 annual fee and a $23K credit line, the second has a $550 annual fee and a $27K line.

I have always shunned and resisted cards with annual fees, for the simple reasoning that I would be paying for something that other providers give me for free.

However, with this card - the Sappire Preferred - I will be getting $600 in rewards soon after getting the card. That means the first 6 years of fees are taken care of (that is how I am choosing to see it, anyway).

Thoughts?

I had the same mindset @StevieK. I started to break away from this in 2018 when I did some cautious research and applied for the Chase Sapphire Reserve. Since then, I've added many other high and mid AF cards. They don't make sense for everyone and for that matter every high AF card might not be worthwhile to someone just because they're willing to pay for such a fee elsewhere. Each card must be evaluated based on its value to you. Especially in the case of the higher AF cards, reassessing valuation every year or so is important to make sure they still make sense for you. In this way, they require a little more oversight than non-AF cards.

Unless you're specifically targeting a card for a SUB and plan to close it within a year or so, I suggest you pick cards that best fit your normal lifestyle and spending. Look at the rewards and perks; balance that with the fees versus the fee credits; then compare the value of ALL of that to your next-best no-AF rewards choice, for example a base 2% everything card.

Putting a value on perks can be not only very individual but very subjective. Some consumers focus ONLY on rewards and credits, which is the most conservative approach. For example, on premium cards like Chase Sapphire Reserve, I have benefits that I don't use annually but it's nice to know I could if I wanted or needed them. This would include Extended Warranty extensions, Purchase Protection, Return protection, and outstanding travel protections like AD&D up to $1Million, Trip Cancellation or Delay, and many others. But some choose to exclude anything on which they aren't getting an actual monetary return. Or how you value airport lounge benefits might vary greatly depending on how often you travel, where you travel, how long your connection times are to be able to use the benefit, or if you travel with other family members who can add to the value, or what you eat/drink on those visits.

I could afford to pay the AMEX Platinum fee but it just doesn't make good financial sense for me. However, the AMEX Marriott Bonvoy Brilliant fee is almost as high, but I can easily justify it based on the value I get from that fee. Others might make the opposite case. With AF cards, you'll need to do your own personal evaluation.

Re: Chase Sapphire Preferred/Reserve Cards

Rebuild2019 — Wed, 08 Nov 2023 22:01:18 GMT

@Aim_High 😂😂😂😂

Re: Chase Sapphire Preferred/Reserve Cards

Anonymous — Wed, 08 Nov 2023 22:05:39 GMT

@Aim_High wrote:
@Anonymous wrote:

Generally, get cards that are of use to you. Not to say that it's wrong to get cards just for big SUBs and close when you can, but there are slight risks. I
I think we lost @Anonymous mid-sentence.

Yes, Amex RAT was at the door, demanding to know why I closed my Gold card back in 1989 after getting a bonus. "I can't remember" wasn't apparently a valid excuse

Re: Chase Sapphire Preferred/Reserve Cards

Aim_High — Thu, 09 Nov 2023 17:40:09 GMT

@Anonymous wrote:
@Aim_High wrote:
@Anonymous wrote:

Generally, get cards that are of use to you. Not to say that it's wrong to get cards just for big SUBs and close when you can, but there are slight risks. I
I think we lost @Anonymous mid-sentence.
Yes, Amex RAT was at the door, demanding to know why I closed my Gold card back in 1989 after getting a bonus. "I can't remember" wasn't apparently a valid excuse

So what did they take in return? Your TV? Or more like your Mercedes Benz since "there was all this accrued interest on the rewards."

Re: Chase Sapphire Preferred/Reserve Cards

Anonymous — Thu, 09 Nov 2023 01:24:43 GMT

@Aim_High wrote:
@Anonymous wrote:
@Aim_High wrote:
@Anonymous wrote:

Generally, get cards that are of use to you. Not to say that it's wrong to get cards just for big SUBs and close when you can, but there are slight risks. I
I think we lost @Anonymous mid-sentence.
Yes, Amex RAT was at the door, demanding to know why I closed my Gold card back in 1989 after getting a bonus. "I can't remember" wasn't apparently a valid excuse
So what did they take in return? Your TV?
Or more like your Mercedes Benz since "there was all this accrued interest on the rewards."

I DO remember closing the card (it wasn't being used) because of the somewhat cringy behavior of the rep (disclaimer: that's me, others here might react differently and appreciate it. Such people need help but that's not my problem).

I asked if I needed to return the cut up card, which was fairly standard behavior at the time. He said in an almost shocked voice "Oh no sir, we would never ask a Gold member to do that!" although I was about to be an ex-Gold member, but member since blah blah blah. Yes, Gold and above cards were a lot less common then but still not exactly exclusive, and cutting up and mailing in a card could just be fitted in to my busy schedule, even if I had to hire a secretary to do it.

Since it was so long ago (around 1987) I don't recall if the card had a SUB or even earned rewards, so no regrets!