Which is the BEST? Chase Sapphire Preferred VS Reserve | 2023

In this video we'll go over two cards that may seem pretty similar but are in fact pretty different and one of them seems a bit more luxurious which might make you think that it's the better choice. But that may not always be the case. So in this video we'll go over the difference between the Chase Sapphire Preferred and the Chase Sapphire Reserve to see which card may be the best for you. Hey there, welcome to Bench with Jazzy. On this channel we talk about credit cards and personal finance and if you like the video please leave a thumbs up and consider subscribing. So we'll structure the comparison by looking at the annual fee, the points offerings, and the benefits. So starting off with the annual fee, the Chase Sapphire Reserve has a $550 annual fee versus the Preferred which has a $95 annual fee. And the current sign up bonus for both of the cards is 60,000 points and that is after you spend $4,000 within the first three months of opening the cards. For the Preferred this is like getting $750 back and for the Reserve it's like getting $900 back. And then of course both of the cards have no foreign transaction fees. So next let's talk about the earnings rates starting with the Preferred. So the Preferred gets you two times the points on travel which is booked outside of the Chase Portal. You get three times the points on online groceries and select streaming services and on dining. And then you get five times the points on every dollar spent through the Chase Ultimate Rewards Portal. And then you get five times the points on Lyft. And finally one times the points for everything else. Now let's compare that with the Reserve. So you get three times the points on travel and dining and this is when booking outside of the Chase Travel Portal. And then you get five times the points on air travel when you book with Chase's Ultimate Rewards Portal. Ten times the points on hotels, rental cars, and dining when you book with the Chase Ultimate Rewards Portal. Ten times the points with Lyft. And one times the points for everything else. So let's take a second and stop here. A lot of the high earning points is when you book through the Chase Ultimate Rewards Portal. So that's not necessarily a bad thing but it's something good to keep note of. But there is one thing that I did want to pay attention to which is that travel category that Chase offers. Three times the points and two times the points for the Reserve and the Preferred. So this travel category is actually relatively lenient for what they consider travel compared to many of these credit cards out there on the market. So let's take a look at this chart of what Chase considers travel versus not travel. And as you can see Airbnb and some Vrbo is on the list. So this is something that you can consider when choosing which card because if you're a type of person who likes to go to vacation homes quite often that might be the deal breaker for you. And then there's another thing about how points are earned. So for the Chase Sapphire Preferred you get 1.25 cents per point when booking on the Chase Travel Portal. And then for the Reserve you get 1.5 cents per point. So that just means that points are worth more with the Reserve when you book with Chase's Ultimate Rewards Portal. And both cards have the same transfer partners and to name a few you have Hyatt, Marriott, JetBlue, Southwest, Singapore and a few more. So those were the points options compared between the two cards. And if you're already seeing which category you tend to spend more on in your lifestyle that can help you to navigate which card to pick. Next let's go over the benefits between the two cards. So for the Sapphire Preferred you get $50 in hotel credit every year. But this hotel credit is only for when booking through the Chase Ultimate Rewards Portal. And then finally every year you do get a 10% anniversary points boost based on your previous year spending. And next to talk about the Sapphire Reserve. So you do get $300 of annual travel credit. And for this you don't have to book with the Chase Ultimate Rewards Portal. This applies to the same chart that I was talking earlier where you can spend these $300 worth in credit on Airbnb or even just highway tolls if that makes sense for you. You also get the fee waive for Global Entry, TSA PreCheck or Nexus every four years. And then you get 12 months complimentary Instacart membership. And every month you get $5 worth in credit. So we just discussed some of the benefits between the two cards. Now we need to discuss the lounge benefits. For the Preferred unfortunately there are no lounge benefits but you do get some with the Reserve. So for one as a Reserve cardholder you get access to the Sapphire lounges. And currently you only have Boston and Hong Kong lounges but you do have a few coming soon such as in Las Vegas and in New York. And then you also get the Sapphire Terrace which is kind of branded a little bit differently but that one is located in Austin. And then by being a Reserve cardholder you also get access to the Priority Pass lounges. So that one gets you access to more than 1,500 lounges globally. So those were the benefits compared between the two cards. So what now? How do you know which card is right for you? So these are my suggestions. For the Sapphire Preferred this card will be right for you if for one you are a casual traveler and like to dine out, two you want solid rewards without that hefty annual fee, and three if you're new to the whole premium credit card game and you don't want to start off with a big annual fee this card is great to get into the whole world of how premium cards and credit card points work. And for the Sapphire Reserved this card will be right for you if for one you are a frequent traveler, two you don't have a card yet with lounge benefits, and three you know you will max out on all the benefits and you'll make that annual fee worth it. So from here do you have an idea on which card is right for you? And what next? What if you are a Sapphire Preferred holder and you want the Sapphire Reserve? And there is an upgrade method that I do suggest so then you can max out on that welcome bonus. So instead of calling the credit card company and asking to get a simple upgrade from the Preferred to the Reserve, which you will actually be sacrificing that welcome bonus, you should downgrade your Sapphire to a Chase Freedom and then reapply for the Reserve. And technically you are not allowed to hold both the Sapphire Preferred and the Reserve and also you have to consider if you are within Chase's 524 rule. So if you already have applied to more than 5 cards within 2 years that may be a decision maker on whether you should simply downgrade, you should wait, or maybe it is better to just ask for an upgrade. So those are my thoughts between the two Sapphires and currently I am holding the Chase Sapphire Preferred. I've had it for about 2 years now and I do appreciate how this card has really introduced me on how the whole point system works with credit cards so I do really think this is a great beginner credit card. Anyway, if you all have your own opinions or comments, you can of course leave your comment below and I'll see you in another video. Bye!