Happy New Year and stay tuned for my new and improved website which is coming soon. 🙂 In the meantime, let’s move to more pressing topics…
Last year, I often posted about one of Chase’s latest products, the Chase Sapphire Reserve card. I applied for that card last fall and scored a 100,000 point bonus. I actually used the points for flights to Park City this coming MLK weekend.
The 100,000 point offer will only be available for one more week. The last day to secure the 100,000 point bonus is next Wednesday, January 11, 2017. After that, the bonus will be 50,000 points. If you were interested in this card, I would ACT NOW!
What’s The Extra 50,000 Points Worth?
Using a conservative estimate of 1.5 cents per point (the amount you receive when you redeem Chase points through the Chase Ultimate Rewards travel site), you would be foregoing $750 in travel rewards if you apply for the card after next Wednesday. Like I said, that is a conservative estimate. Chase points are so flexible because you can transfer them to Chase partners, that recent valuations have set Chase points at about 2 cents per point. If you were thinking about this card anyway, forgoing that extra 50,000 points is basically giving up $1,000 value in travel rewards. Keep in mind, you must spend $4,000 over the next 3 months to secure the 100K bonus and the card has a $450 fee.
Let’s analyze why the fee is worth it and look at some of the features of the card again.
The $450 Fee
1. Let’s assume for a moment that there were no credits to offset the fee and that a $450 fee was a true $450 fee. Like I said above, Chase points are valued at about 2 cents per point. Getting the 100,000 point bonus is like getting $2,000 in travel rewards for just $450…at least the first year.
2. Now let’s put the credit back. Each year, you automatically receive up to $300 in statement credits as reimbursement for travel-related purchases charged to your card. So in later years, you can think of that fee as only $150 instead of $450.
3. Chase Sapphire Preferred cardholders- read my analysis here where I even knock some more off of the remaining $150.
Earn Bonus Points On Spending
1. Earn 3 points on Dining– Earn 3 points per $1 spent at restaurants. No matter where, or what, you eat – from fast food to fine dining.
2. Earn 3 points on Travel-Earn 3 points per $1 spent on travel when you use your card to pay for airfare, hotels, cruises, rental cars, travel agencies, train tickets, taxis, tolls and more (Click here for a complete definition of travel from Chase).
3. In addition to earning 3 points per dollar at restaurants and on travel, you’ll earn 1 point for every dollar you spend on all your other purchases.
Complimentary Priority Pass Select Membership
You can enroll in Priority Pass Select at no additional cost. This program gives you access to numerous airport lounges that are part of the Priority Pass Select Program.
Global Entry or TSA✔ Fee Credit
Receive a statement credit of up to $100 every 4 years as reimbursement for the application fee charged to your card for Global Entry or TSA Pre√
50% More In Value When You Redeem Your Points For Travel
When you use points to redeem for cash, each point is worth $.01 (one cent), which means that 100 points equals $1 in redemption value. However, as I mentioned above, each point you redeem for travel booked through Chase Ultimate Rewards is worth $.0150 (one and a half cents), which means that 100 points equals $1.50 in redemption value, and points are worth 50% more than if redeemed for cash. For example, a $750 flight (or other travel purchase booked on the Chase Ultimate Rewards site) requires 50,000 points. (NOT 75,000) Note, compare this to the Sapphire Preferred card where points can be redeemed for 1.25 cents each. Read about how to redeem points through Ultimate Rewards here.
No Foreign Transaction Fees
Pay no foreign transaction fees when you use your card on purchases made outside the United States.
Transfer Points To Chase Partners
Transfer points to participating frequent travel programs with no transfer fees and at full 1:1 value – that means 1000 Ultimate Rewards points equal 1000 partner miles/points. Read about how to transfer points to travel programs here.
The Bottom Line
If you want this card, apply soon! If you are hesitant because you fear you will not be approved, read some of my tips to help you ensure that your applications get approved. Good luck if you want it. I sure do love mine!
