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In late July I first posted about the rumored card that Chase is planning on introducing this month, called the Chase Sapphire Reserve Card. This is intended to be a premium credit card that could compete with the likes of The Platinum Card® from American Express and the Citi Prestige Card. A few days later we found out more rumored details of the card.
Well, for the first time ever, Chase has officially acknowledged the Sapphire Reserve Card on Twitter, linking to a post by The Points Guy.
Announcing the new Chase Sapphire Reserve Card — with a 100,000-point bonus. https://t.co/OGKMJDz6hx
— Chase (@Chase) August 15, 2016
Let’s take a look at what we know about the card so far.
Chase Sapphire Reserve Card details
While there are still some unknowns as of now, here’s what we know:
- Chase Sapphire Reserve sign-up bonus: 100,000 Ultimate Rewards points after spending $4,000 within three months
- Chase Sapphire Reserve annual fee: $450
- Chase Sapphire Reserved bonus categories: 3x points on travel and dining purchases worldwide (50% better than the 2x points offered on those categories with the Chase Sapphire Preferred® Card
- Chase Sapphire Reserve $300 annual travel credit: this credit can be applied towards any purchase coded as travel, including a hotel, taxi, airfare, etc., making this the best travel credit offered by any card
- The Chase Sapphire Reserve will come with a Priority Pass Select membership, though we don’t know if it will come with guesting privileges like the Citi Prestige Card
- The Chase Sapphire Reserve will come with a $100 Global Entry fee credit
- Points earned on the Sapphire Reserve Card can be redeemed for 1.5 cents each towards travel through the Ultimate Rewards website, rather than the 1.25 cents per point offered on the Chase Sapphire Preferred® Card
- The Chase Sapphire Reserve will be a Visa Infinite
My thoughts on the Sapphire Reserve Card
This will be a very, very compelling credit card. It goes without saying that the sign-up bonus is huge, possibly the best sign-up bonus we’ve ever seen on any credit card. The card should go live at some point next week.
But even beyond that, this card is a long term keeper.
By my mental accounting, the real cost to hold onto this card is $150 per year. I (obviously) spend more than $300 per year on travel, so I value that travel credit at face value, which is how I come up with that “cost.”
On top of that, the travel credit is based on calendar years rather than cardmember years, so you’ll actually get $600 in credit before your second year’s annual fee is due, meaning you’ll come out $150 ahead with your first year’s annual fee.
But even in subsequent years you’re paying the equivalent of $150 per year to earns triple Ultimate Rewards points on dining and travel, which is incredible. I conservatively value Ultimate Rewards points at 1.7 cents each, so to me that’s a return of over 5% on dining and travel purchases.
Add in all the other benefits that come with the card, and you’re looking at an amazing offering.
Chase Sapphire Reserve bottom line
This is going to be an incredible credit card. Between the sign-up bonus and huge return on everyday spend, this might just be the all around most compelling credit card I’ve ever seen.
What do you make of the upcoming Chase Sapphire Reserve Card?