Updates on the Chase Sapphire Reserve

The Chase Sapphire Reserve launched a couple weeks ago after several months of frenzied speculation.  There's been so much written about the card (which launched during our trip) and it's been hard to keep track of all of the developments.

I'm catching up this weekend and here's the high level overview:

• $450 annual fee
• $300 travel credit per calendar year
• 3x Ultimate Rewards points earned on travel and dining
• Same point transfer partners as Chase Sapphire and Ink
• Priority pass with guest privaleges
• $100 PreCheck/Global Entry credit
• No Foreign Transaction Fees

The card's been in such high demand, that Chase ran out of metal cards.  We also found out that JP Morgan is offering the JP Morgan Reserve card which seems to be an identical card offering specifically for JP Morgan Private Bank (and potentially others) customers.  

Some have even been successful in getting approved for both products.

It's also been confirmed that the Reserve card falls into Chase's dreaded 5/24 rule meaning you can't get the card if you've been approved for 5 (any 5 personal cards) in the past 24 months.  While there are ways around the 5/24 rule, it seems to be a pretty hard line.  Chase even added the language briefly to the Reserve application page before removing it.

So there's been a lot of news/noise around the card.  Let's talk about the offering for a second.  

This is the single most valuable credit card on the market.  Period.  The $300 travel credit is essentially as good as cash for most people that fly.  That drops the annual fee down to $150.  The Chase Sapphire card was previously one of the best all around cards available and comes with a $95 annual fee.  So for another $55 you are getting all of the benefits stated above plus 3x points on travel and dining.  

If you spend $1,000 per month in those categories, that is 12,000 additional points per year.  I value Chase Ultimate Rewards around 2 cents/point.  That would be an additional $240 in value...well above the $55 breakeven point.  That's before the Priority Pass, PreCheck credit, and other benefits.  And don't forget the 100,000 point signup bonus.  That's worth nearly $2,000 in transferable point value.  The bottom line is that most everyone will get value out of this card despite the initial sticker shock off the $450 upfront fee.  

While I am slightly over 5/24, I did apply for the card and my application went to pended and then declined.  I am still working with Chase to see if there's anything they can do to provide an approval. Stay tuned!