Chase Sapphire card vs 2% cash back?

[Scuba]

We currently use the Fidelity rewards card to buy virtually everything and get 2% back. Chase is now offering a 100K points bonus worth $1,250 in travel benefits if you spend $4K, and there is a $95 fee. So this equates to 29% cash back on $4K.

For those of you that hold the Chase Sapphire card, do you find the benefits justify the annual fee? I really like getting 2% back on every purchase, but wonder if we should try this instead.

 

[Sunset]

I don't know if this is still on or not, but applying at the bank had some extra bonuses for me:
I just went to the Chase bank and got approved for the Sapphire preferred CC.
By doing at the bank, they waived the first year $95, plus give me a $50 grocery credit, and 100,000 points after spending $4K in three months.

I previously had a "travel" card, whose fee was also $95 and I paid it as the benefits of the card were worth the fee. It was the BOA premier travel card. It had a terrific benefit of $100 airline fee upgrade reimbursement, so paid for the annual fee.

For the Sapphire,
I feel the trip cancellation $10K/pp (sickness, etc) is worth the $95 , as it means I can buy just health/medical coverage for trips. The car rental is primary coverage, and baggage delay of only 6 hours is pretty short so better than some insurances.

Had I not got it at the bank and had the first year fee waived, it's still worth it to earn the bonus which is worth $1,000->$1,250 depending upon how you redeem it. Even if you cancel it within the first year $1,000 - $95 = $905 minimum net profit.

My plan is to use it (after spending the 4K) on JUST travel expenses, like trips, and use my higher paying card for normal stuff. You don't have to give up your 2% card.

The $50 grocery credit showed immediately when I spent the money at a grocery store as a statement credit off-setting the expense.

 

[The Cosmic Avenger]

I feel the trip cancellation $10K/pp (sickness, etc) is worth the $95 , as it means I can buy just health/medical coverage for trips. The car rental is primary coverage, and baggage delay of only 6 hours is pretty short so better than some insurances.

Hm, is the trip cancellation for any reason? Our biggest concern now that we're still w*rking is a "voluntary" cancellation, where a big work project comes up at the last minute, or a special veterinary need, which some trip insurance doesn't include as a medical reason. This would come in handy if we start traveling more, as I learned my lesson last year and will either purchase only refundable travel arrangements or get comprehensive trip insurance.

 

[fh2000]

Hm, is the trip cancellation for any reason? Our biggest concern now that we're still w*rking is a "voluntary" cancellation, where a big work project comes up at the last minute, or a special veterinary need, which some trip insurance doesn't include as a medical reason. This would come in handy if we start traveling more, as I learned my lesson last year and will either purchase only refundable travel arrangements or get comprehensive trip insurance.

DW has this card. According to their Guide to Benefits:

What's not covered for Trip Cancellation, Trip interruption:
A change in plans, financial circumstances.....

So I do not think it is for any reason. We also have a Case Sapphire Reserved card, and we received all full refund last year when airlines and travel agencies cancelled our trips. We did not initiate any cancellation on our own.

 

[calmloki]

Read the other day that the Chase Preferred card promotion ends July 17, so hustle down and apply if you are planning too. Fidelity card user normally here, but am at $2765 spend on my new Chase Preferred card right now after using it till it smokes the last twelve days. (prepaid car and house insurance, car tags, every other auto-pay I could divert)
Should go over the $4000 spend on the 22nd, then back to Fidelity. But who doesn't like $1250 back on $4000?

 

[Chuckanut]

I don't know if this is still on or not, but applying at the bank had some extra bonuses for me:
I just went to the Chase bank and got approved for the Sapphire preferred CC.
By doing at the bank, they waived the first year $95, plus give me a $50 grocery credit, and 100,000 points after spending $4K in three months.

I've been looking at this card since Costco dropped the travel protections from their VISA. However, I have a hard time paying $95 for a CC especially one that earns 'points' that can be devalued at the drop of the banker's hat.

Did you already have a relationship with you local branch of Chase when they gave you the fee waver and groceries? Perhaps that is why you got such a good deal? Or maybe you are just a better negotiator than I am?

 

[Dreamer]

I went to the Chase bank within the last week and they waived the $95.00 fee for me also. I called to make sure that they would waive the fee for the first year, if applying in person. I have never paid a fee for a credit card and I have no idea if I will keep this card or not. I keep reading that it is a good card to have, so I need to read about being able to use the points for travel. I normally use the Citi Double Cash credit card and receive 2% cash back.

The only Chase relationship I had was my Amazon credit card. This was the first time I was ever in a Chase bank.

 

[calmloki]

I've been looking at this card since Costco dropped the travel protections from their VISA. However, I have a hard time paying $95 for a CC especially one that earns 'points' that can be devalued at the drop of the banker's hat.

Did you already have a relationship with you local branch of Chase when they gave you the fee waver and groceries? Perhaps that is why you got such a good deal? Or maybe you are just a better negotiator than I am?

Not the best use of points, but I've had Chase mail me a check for the points in the past. Penny a point. 100,000 = $1000. minus $95? heck yeah I'll take the $905.

When you apply in branch it will show as a 80,000 point promotion, but there is printed verification that they will kick in 20,000 more points at bonus award time. Chase has always been really good about promo awards - very easy and transparent unlike CITI or BofA

 

[Another Reader]

Both. I took the bonus before they added the $95 fee waiver and the $50 credit in the branch. Still worth it. Not sure I will keep it after the year is up.

 

[Dtail]

As a note, the BOA Premier card does reimburse $100 of baggage fees, so if one travels a couple of times, effectively the $95 yearly fee is covered.

 

[Chuckanut]

Sounds good. One last question. I will need to thaw credit bureau accounts. Anybody know which reporting bureau Chase uses?

 

[Walt34]

Another bennie to the Chase Sapphire Preferred card is that when you use it to buy something with a warranty, the warranty is doubled. I rather doubt that will work for cars, but I made a point to use it when buying a new snow blower for example. So far the $95 fee has been more than covered by the cashback points so I keep it.

 

[PaunchyPirate]

Sounds good. One last question. I will need to thaw credit bureau accounts. Anybody know which reporting bureau Chase uses?

I just signed up using the current offer. Chase pulled from both Experian and TransUnion. I had temporarily thawed all 3 just in case.

 

[Sunset]

I've been looking at this card since Costco dropped the travel protections from their VISA. However, I have a hard time paying $95 for a CC especially one that earns 'points' that can be devalued at the drop of the banker's hat.

Did you already have a relationship with you local branch of Chase when they gave you the fee waver and groceries? Perhaps that is why you got such a good deal? Or maybe you are just a better negotiator than I am?

The special deal was (is?) available to anyone applying inside the bank.
IF you do it online, the fee waiver and groceries does not come with it.

 

[Sunset]

The other interesting thing about this sapphire card, is I have the Freedom card (no fee) and it has 5% back on various categories.

I can transfer the points earned on it to my Sapphire card, and then redeem them for 1.25% in travel benefits. That's equivalent to 6.25% if I was incredibly good at the 5% category.

 

[Scuba]

I went to the Chase bank within the last week and they waived the $95.00 fee for me also. I called to make sure that they would waive the fee for the first year, if applying in person. I have never paid a fee for a credit card and I have no idea if I will keep this card or not. I keep reading that it is a good card to have, so I need to read about being able to use the points for travel. I normally use the Citi Double Cash credit card and receive 2% cash back.

The only Chase relationship I had was my Amazon credit card. This was the first time I was ever in a Chase bank.

Thanks, great info. I was wondering if they only waive the fee for Chase account holders, which we are not.

 

[FIYes]

Good information here. I was planning on a new card for points. This has moved to the top of my list for consideration, especially if I can get the $95 fee waived for a year.

 

[Chuckanut]

Good information here. I was planning on a new card for points. This has moved to the top of my list for consideration, especially if I can get the $95 fee waived for a year.

My only hesitation is the $4000 spend in the first three months. I am just past my spending season for this year. I don't want to be tempted to buy something just to hit $4000. That rather defeats the purpose of getting the card.

 

[FIYes]

Yes, the $4000 spend is an issue. I will wait about a month to apply for this if it is still available. Homeowners’ insurance and auto insurance hit in the fall and that will take up a fair bit of the $4000. If I get close but not quite there then Amazon gift cards at the grocery (I can always use the gas points) will make up the difference.

 

[PaunchyPirate]

Yes, the $4000 spend is an issue. I will wait about a month to apply for this if it is still available. Homeowners’ insurance and auto insurance hit in the fall and that will take up a fair bit of the $4000. If I get close but not quite there then Amazon gift cards at the grocery (I can always use the gas points) will make up the difference.

Same here. June is a big expense month for me (car, homeowners and umbrella insurance plus others) and I just missed that with this recent promotion. I signed up for the card and was hoping to receive it in time to use it to pay for lodging expenses on my recent National Parks vacation, but it didn't arrive until I was already gone. So I missed those expenses too. But now I'm charging everything I buy on the new card. I may very well have to buy some gift cards at the grocery as well. I'll get to $4000 one way or another without unnecessary purchase.

 

[tulak]

The Preferred offer right now is a deal. If I didn't already have a Sapphire card, I wouldn't hesitate to apply.

I have the Reserve card and the $250/year charge (after $300 travel credit) is probably break-even for me when compared to the Preferred card. Sapphire is a great card if you travel a lot.

 

[BlueberryPie]

My wife applied in early June and still has not received her card. They kept telling us to wait for it to show up and finally agreed to ship another one, which they didn't even rush to us. That's 6 less weeks to rack up the $4K.

If we have to, we will have to be creative, stock up on expensive things we need and use, someone suggested buying gift cards in a different thread also, but $4K is a lot of booze and gift cards At least we have the cash flow that allows us to pre-buy and not have to worry about hte monthly budget or (yikes!) carying a balance.

Last-ditch measure is pay the kid's college tuition (at least part of it) on the CC, but there is an extra fee, but I'd rather pay another $100 in fees rather than lose the signup bonus altogether (as someone pointed out worth $1000 in cash, or $1250 in travel)

It will all be worth it when we're lying on the beacj in January...

 

[Sunset]

I have spent roughly $3K on my Sapphire card and the first month isn't over yet.

I booked a cruise and bought a mattress to replace our 18 yr old mattress.

It's crazy that they don't expedite it for some people, they did for me (I applied at bank) and the banker phoned in. It showed up in about 3 days.

 

[Scuba]

Not the best use of points, but I've had Chase mail me a check for the points in the past. Penny a point. 100,000 = $1000. minus $95? heck yeah I'll take the $905.



When you apply in branch it will show as a 80,000 point promotion, but there is printed verification that they will kick in 20,000 more points at bonus award time. Chase has always been really good about promo awards - very easy and transparent unlike CITI or BofA

Thank you so much for posting this screen shot! We went to the Chase branch Monday, applied for the card, and showed them this screenshot because initially he was saying we would only get 80K points and didn’t seem to know about the fee waiver or the grocery credit. After seeing this, he agreed that we would get these benefits. :dance

 

[Markola]

The other interesting thing about this sapphire card, is I have the Freedom card (no fee) and it has 5% back on various categories.

I can transfer the points earned on it to my Sapphire card, and then redeem them for 1.25% in travel benefits. That's equivalent to 6.25% if I was incredibly good at the 5% category.

Sunset, How well does the Freedom Card work in practice re: the rotating categories that earn 5%? I saw a promotion that 5% is offered on Groceries, which would be valuable to me, but Groceries are only for the first year or something. Do you find the other categories to be worthwhile things you actually buy? Thanks.