Chase has a new card, The Chase Sapphire Reserve and they're offering $1,500 sign on bonus for travel or $1,000 in cash. It was just released a little over a month ago.
It's been awhile since a card this good has come out and with such a high sign up offer.
You have to spend $4,000 in the first three months to get a bonus of 100,000 points, worth $1,500 in travel or you can opt to cash out at $1,000. The cash option can be deposited to your bank account or used to pay the balance of the card.
That breaks down to $1333.33 a month you have to spend to hit the bonus. My brother is lucky enough that he pays his rent online so this is like free money for him.
Now, you do have a $450 annual fee, and I'll do the math at the end of this post, so you can see that you still stand to make a good amount of profit by signing up.
This card comes with a TON of benefits to boot, and I'll list them all, but before I do, I want to point out one that you can capitalize on the most:
The $300 annual travel credit.
The way it works is you spend $300 on travel, and you get the $300 rebate instantly. And because we are so late into 2016 you can get this twice before the next annual fee hits.
That means you get $600 in travel rewards for 2016 and 2017, and your annual fee won't hit until September 2017 if you get the card this month.
If you don’t have any flights coming up an easy solution is getting a gift card for an airline like Southwest or Delta. And it doesn’t have to be a flight, you can use the credit towards taxis, trains, or hotels.
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A couple more notable benefits are:
1. Free Global Entry or TSA Pre-check ($100 value) - If you don't have this it's a lifesaver at the airport. You go to the pre-check line which is usually anywhere between 30 -60 mins faster than the regular line.
2. Free Priority Pass Select Membership for airport lounge access - This is an awesome perk. One of my favorite lounges is the Virgin America Loft in LAX and with this pass you get free access. They have free booze, snacks, wifi and comfortable seats.
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If you plan on canceling before the next fee the math breaks down like this:
$1500 (credits redeemed via Chase travel portal) + $600 in travel credit ($300 for each calendar year) - $450 in annual fee = $1650 in Travel and if you got the rebate for TSA precheck that's $1750 total.
One more important thing I should mention is that Chase has a rule, it's known as the 5/24 rule. If you're not familiar with it, Chase won't approve you for a card if you have 5 new accounts within a 24 month period. If this is you, don't bother applying because it isn't worth the ding on your credit.
Here are all the cards benefits (pulled directly from the chase website):
- 3X Points on Travel and Dining Worldwide
- Trip Cancellation / Trip Interruption Insurance
- $300 Annual Travel Credit
- Auto Rental Collision Damage Waiver
- Complimentary Airport Lounge Access
- Baggage Delay Insurance
- Global Entry or TSA Pre✔® Fee Credit
- Trip Delay Reimbursement
- Special Car Rental Privileges
- Roadside Assistance
- 50% More Value in Travel Rewards
- Lost Luggage Reimbursement
- Exclusive Events & Experiences
- Travel and Emergency Assistance
- 1:1 Point Transfer
- Travel Accident Insurance
- The Luxury Hotel & Resort CollectionSM
- Emergency Evacuation & Transportation
- No Foreign Transaction Fees
- Emergency Medical and Dental Benefit
All in all, I'm going to keep the card (even with the high fee) because, for me, the benefits are worth it. I'm also going to try and call and get the fee waived, I'll let you know how that goes. Whether you decide to keep or cancel the card after a few months, you stand to gain a lot in the process.
If you have any questions, feel free to ask in the comments below.
I know you guys are waiting for some credit advice, but this was too good not to let you in on before they change the sign up bonus. In my next post, I'll address what to do about derogatory marks on your credit.
Good luck!
