Chase Sapphire card vs 2% cash back?

[Sunset]

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.

I have the Freedom card, I notice on chase.com, they offer 2 other freedom cards. The Freedom flex seems to be the one similar to what I have, only better with the grocery offer for 1 year.

Every 3 months, they send me an email (or on login to account) to activate the 5% category. They do seem to repeat the categories every year.
They are pretty expansive in the list they provide about what qualifies per category, and you can see the listing.
I find it useful, I just ensure that I use that card for whichever category is 5%.

Their cashing in the points is pretty decent, before I had the sapphire card, I'd cash in for statement credit , and sometimes they have gift cards on sale for 10->15% off, which was a better value.

 

[jimnjana]

I got the reserve card earlier this year primarily for the travel insurance. That along with travel credit makes it worth it for us. Also just saved about $100 on a rental car with avis vs kayak with their benefit program.

 

[novaman]

The Fidelity Rewards card offers a 3% cash back on all purchases for Wealth management clients who have at least 2 million invested at fidelity.

https://www.fidelity.com/rewards/overview

 

[Chuckanut]

Those revved up reward cards can buy a lot of pizza and beer:

Currently, I am getting 5% back on:

Gasoline - Amazon Prime Card (7/1 through 8/15).
Restaurants - Discover Card (Mostly used during summer travel)
Netflix - Chase Freedom Flex
Groceries - Chase Freedom Flex (only for the first year)
Amazon prime purchases - Amazon Prime Card (but Amazon is getting less price competitive. Be careful.)

4%
Gasoline - Costco Visa

3%
Travel - Costco Visa

2% - Fidelity. Visa

Once Amazon offered me 10% if I paid my utility bills with the Prime card. Alas, I haven't seen that offer again.

I am continually amazed that I make more money on the cash back than I do on the interest earned on most of my CD's and savings accounts. And cash back is tax free. Given the current [-]War on Savers[/-] low interest rates, cash-back is needed more than ever.

 

[braumeister]

The Fidelity Rewards card offers a 3% cash back on all purchases for Wealth management clients who have at least 2 million invested at fidelity.

https://www.fidelity.com/rewards/overview

But doesn't that require you to have a "wealth management" (managed) account? The fees on that would probably outweigh the extra 1% on CC purchases.

 

[Markola]

Welp, this string got me over to the Chase branch today, where I obtained the Chase Sapphire Preferred card. I walked in and said I needed to speak with someone who is knowledgeable about the current promotion. As advertised, 100,000 points, which I’ll convert to cash and, since I went into the branch vs. online, I got the first year fee waved and the $50 grocery credit. Application and approval was easy peasy, since the teller did all the typing, and was speeded up because I already have the Chase Amazon Prime card (5% cash back from Amazon and Whole Foods)

Thanks, Scuba, Sunset, et al for motivating me to walk over and collect one grand. [emoji385]. Together with my Citi Double Cash Back (2%), the Prime card and a Venmo MasterCard for 6% intro back on groceries (then 3% permanently), I should net $3,000 cash back this year. That may not sound like much to some but it’s enough to buy me a pre-owned car every ten years.

 

[Scuba]

The Fidelity Rewards card offers a 3% cash back on all purchases for Wealth management clients who have at least 2 million invested at fidelity.

https://www.fidelity.com/rewards/overview

I didn’t realize that. Will have to see what they’re paying me these days. Thanks.

 

[Scuba]

But doesn't that require you to have a "wealth management" (managed) account? The fees on that would probably outweigh the extra 1% on CC purchases.

Good point!

 

[Scuba]

Welp, this string got me over to the Chase branch today, where I obtained the Chase Sapphire Preferred card. I walked in and said I needed to speak with someone who is knowledgeable about the current promotion. As advertised, 100,000 points, which I’ll convert to cash and, since I went into the branch vs. online, I got the first year fee waved and the $50 grocery credit. Application and approval was easy peasy, since the teller did all the typing, and was speeded up because I already have the Chase Amazon Prime card (5% cash back from Amazon and Whole Foods)

Thanks, Scuba, Sunset, et al for motivating me to walk over and collect one grand. [emoji385]. Together with my Citi Double Cash Back (2%), the Prime card and a Venmo MasterCard for 6% intro back on groceries (then 3% permanently), I should net $3,000 cash back this year. That may not sound like much to some but it’s enough to buy me a pre-owned car every ten years.

You’re welcome! When I went into the branch, they said I’d get 80K points rather than 100K, but then I showed them the screen shot from this thread and they said they’d honor it but as noted in the screen shot, it would be two separate credits. Did you have a similar experience?

 

[Scuba]

For those who have had this card for a while, once you hit the $4K spending needed to get this promotion, did you continue to use it vs a cash back card? If so, for what benefits?

 

[CRLLS]

I just checked my eligibility for the 3% Fidelity card, Nope! I don't have any money in "wealth management". One needs a minimum of $250,000 under Wealth Management to qualify. In order to justify the 3% card over a 2% card, assuming I could get their minimum fee of 0.5%, which runs from 0.5% to 1.5% on that 250,000, I would have to spend $125,000 annually on that card to break even. There is an alternative qualifying if one has >2mil in their "Private Wealth Management" plan. Not gonna happen. I'll be keeping my Fido 2% card thank you. i guess the 3% card is good if you are already under their Wealth Management wing.

 

[Chuckanut]

I should net $3,000 cash back this year. That may not sound like much to some but it’s enough to buy me a pre-owned car every ten years.

That's the kind of thinking that separates members of this group from the folks who collect their SS check and say to themselves "Is that all I have to live on for the next month?!?!!?"

Keep on thinking like that and you will soon be on my list of Dangerous Radicals Who Infest This Site. It's been a while since I added to the list. I need to get busy.

 

[Sunset]

For those who have had this card for a while, once you hit the $4K spending needed to get this promotion, did you continue to use it vs a cash back card? If so, for what benefits?

I haven't had this card for a while, but in the past I'm willing to spend the annual fee of $95 to have a travel card that has trip cancellation and other trip coverage available.

Since Costco CC and AA CC (Citi) cut out their travel benefits, I appreciate having a card for travel.

So I'll use this CC for travel.

 

[2017ish]

For those who have had this card for a while, once you hit the $4K spending needed to get this promotion, did you continue to use it vs a cash back card? If so, for what benefits?

I've kept the Sapphire reserve (450, soon 550, a year, albeit before the kickbacks/credits), along with a BoA 2.625% rewards card as our primary cards. To us it is worth it, as the majority of our spending is travel and restaurants whilst traveling. Redeeming through the chase travel portal gives us an effective total of 4.5% on the card. Also, the included priority club membership is something we've used quite a bit in airports outside the US.

DW just got the Preferred and its bonus. Will have to run the numbers to see if it is more attractive than the Reserve and determine which one to renew next year. Last time we looked 4 years ago, the Reserve was better in our particular situation.

 

[Chuckanut]

According to the Doctorofcredit website the following changes may happen to the Saphire preferred card in August. Any thoughts?

https://www.doctorofcredit.com/chas...ards-hotel-credit-10-anniversary-credit-more/

Chase Sapphire Preferred Changes

• $50 Annual Hotel Credit. This is per cardmember year, rather than calendar year. Must be booked through the Chase Travel Portal.
• Card earns at the following rates:
  • 5x on travel booked through the Chase Travel portal.
  • 3x on Dining/Streaming Services/online grocery (excludes: excluding Target, Walmart and
    wholesale clubs)
  • 2x on travel
  • 1x on all other purchases
  • 10% Anniversary point bonus. When you renew your card Chase will offer a 10% bonus spend. For example if you spend $25,000 you’d earn 2,500 bonus points. This is award after the annual fee is paid. This doesn’t apply to the sign up bonus.

 

[Markola]

That's the kind of thinking that separates members of this group from the folks who collect their SS check and say to themselves "Is that all I have to live on for the next month?!?!!?"

Keep on thinking like that and you will soon be on my list of Dangerous Radicals Who Infest This Site. It's been a while since I added to the list. I need to get busy.

I do like learning from the personal finance thoroughbreds here on ER Forum. An uncle once told me, “You could squeeze the buffalo off a nickel.” Rather, I try to be alert to easy wins. Pareto’s 80/20 law. This time it was drinking coffee, reading this string then walking 3 blocks to collect $1,050. Another time it was learning here about the Rule of 55, and figuring out how to FIRE at 55 rather than 59.5. DW too. What is that worth?!! Wouldn’t it be interesting if all the free, expert financial advice provided here and acted upon by readers could be quantified? It would likely be in the billions.

You’re welcome! When I went into the branch, they said I’d get 80K points rather than 100K, but then I showed them the screen shot from this thread and they said they’d honor it but as noted in the screen shot, it would be two separate credits. Did you have a similar experience?

I saw your experience, so I walked in and said I wanted to speak to someone knowledgeable about this promotion. She replied, “That would be me!” and she was right. Thanks again!

 

[Sunset]

I have the freedom CC and the Sapphire CC.
Today, since I had 10K in points on my freedom CC, I moved the points over the Sapphire CC.

I did this because the Sapphire CC gives me more reward value per point (1.25%)
I noticed that the Sapphire allows this high redemption value on statement credits for a bunch of things (until Summer is over) like restaurants, groceries, etc..
Pretty easy to get a good redemption.

 

[Chuckanut]

OK, you folks have convinced me to get the Chase Sapphire Preferred card by applying at my local branch.

Alas, Chase is doing its best to dissuade me.

I arrived at the local branch. There were two very busy tellers and long waiting times to get to them. One other branch employee was working with a customer in one of their little cubicles. There was nobody to ask a question about getting the CC unless I wanted to barge in and interrupt another customer. So, I get in the teller line for want of any better option. After 25 minutes I get to the teller and ask to apply for the card. But, it seems I need to talk to an actual Banker, not a teller. No Banker is available today. And the Banker is booked well into next week. Can I go to another bigger branch with more Bankers? I reply yes. After a few minutes on his computer the teller offers me a 9:30 appointment at another branch on Monday. I take it. But, wait! That appointment got scooped up while we were talking. How about 10:00 AM? I'll take it. He types on the computer for a few more minutes. And, wait again! The computer system is having problems and he can't make appointments. He writes down my name and phone number and says he will relay it to the other branch Banker who will call me to make an appointment to apply for the card.

As I leave the bank I see all the wonderful ads for Chase products showing happy people enjoying life thanks to Chase Bank. And I wonder if perhaps they should spend a bit less on marketing and bit more on service.

I will try again next week. Maybe. If I can get an appointment.

 

[PaunchyPirate]

OK, you folks have convinced me to get the Chase Sapphire Preferred card by applying at my local branch.

Alas, Chase is doing its best to dissuade me.

I arrived at the local branch. There were two very busy tellers and long waiting times to get to them. One other branch employee was working with a customer in one of their little cubicles. There was nobody to ask a question about getting the CC unless I wanted to barge in and interrupt another customer. So, I get in the teller line for want of any better option. After 25 minutes I get to the teller and ask to apply for the card. But, it seems I need to talk to an actual Banker, not a teller. No Banker is available today. And the Banker is booked well into next week. Can I go to another bigger branch with more Bankers? I reply yes. After a few minutes on his computer the teller offers me a 9:30 appointment at another branch on Monday. I take it. But, wait! That appointment got scooped up while we were talking. How about 10:00 AM? I'll take it. He types on the computer for a few more minutes. And, wait again! The computer system is having problems and he can't make appointments. He writes down my name and phone number and says he will relay it to the other branch Banker who will call me to make an appointment to apply for the card.

As I leave the bank I see all the wonderful ads for Chase products showing happy people enjoying life thanks to Chase Bank. And I wonder if perhaps they should spend a bit less on marketing and bit more on service.

I will try again next week. Maybe. If I can get an appointment.

Don't hold me to this, but I believe I have seen posted that the in-branch offer is only valid thru July 17th. Today. I could be wrong. Read thru this post. I'm pretty certain I saw it here or maybe on the similar Boglehead forum thread. It may be best to request it online today (with inferior benefit), if the 100,000 miles is your primary objective.

 

[calmloki]

Don't hold me to this, but I believe I have seen posted that the in-branch offer is only valid thru July 17th. Today. I could be wrong. Read thru this post. I'm pretty certain I saw it here or maybe on the similar Boglehead forum thread. It may be best to request it online today (with inferior benefit), if the 100,000 miles is your primary objective.

That would be post #5 - think I pulled that rumor from the Dr. of Credit site. Worth a quick read over there followed by action.

 

[Markola]

OK, you folks have convinced me to get the Chase Sapphire Preferred card by applying at my local branch.

Alas, Chase is doing its best to dissuade me.

I arrived at the local branch. There were two very busy tellers and long waiting times to get to them. One other branch employee was working with a customer in one of their little cubicles. There was nobody to ask a question about getting the CC unless I wanted to barge in and interrupt another customer. So, I get in the teller line for want of any better option. After 25 minutes I get to the teller and ask to apply for the card. But, it seems I need to talk to an actual Banker, not a teller. No Banker is available today. And the Banker is booked well into next week. Can I go to another bigger branch with more Bankers? I reply yes. After a few minutes on his computer the teller offers me a 9:30 appointment at another branch on Monday. I take it. But, wait! That appointment got scooped up while we were talking. How about 10:00 AM? I'll take it. He types on the computer for a few more minutes. And, wait again! The computer system is having problems and he can't make appointments. He writes down my name and phone number and says he will relay it to the other branch Banker who will call me to make an appointment to apply for the card.

As I leave the bank I see all the wonderful ads for Chase products showing happy people enjoying life thanks to Chase Bank. And I wonder if perhaps they should spend a bit less on marketing and bit more on service.

I will try again next week. Maybe. If I can get an appointment.

That’s a bummer. The little Chase branch I used is new within the last year, so maybe they aren’t crazy busy yet. I can’t find a deadline for the promotion but it’s probably a good idea to call Chase to ask before you stand in line again.

I’m taking the cash but I thought this little article about how to really leverage the travel points through the creative use of airline alliances was worthwhile. From what I’ve read, using points for hotels and cars or anything besides airfare is not worthwhile.

https://www.cnbc.com/select/best-uses-chase-sapphire-preferred-100k-point-welcome-bonus/

 

[explanade]

I had this card years ago, then replaced it with the Sapphire Reserve and then got rid of that for about a year to be able to get the bonus again.

I only got 80k UR points.

I use it on all dining and travel unless the merchant takes Amex. I have Green Amex card which gives 3X points for travel and dining.

I also have 2% cash back card which I use on all categories other than dining and travel.

The premium card points are good for converting into airline miles, to use for business class international tickets.

 

[Markola]

I had this card years ago, then replaced it with the Sapphire Reserve and then got rid of that for about a year to be able to get the bonus again.

A lot of people churn Chase Sapphire cards, so FYI that Chase excludes from this promotion anyone who has obtained a Sapphire card in the last 4 years.

 

[Sunset]

That’s a bummer. The little Chase branch I used is new within the last year, so maybe they aren’t crazy busy yet. I can’t find a deadline for the promotion but it’s probably a good idea to call Chase to ask before you stand in line again.

I’m taking the cash but I thought this little article about how to really leverage the travel points through the creative use of airline alliances was worthwhile. From what I’ve read, using points for hotels and cars or anything besides airfare is not worthwhile.

https://www.cnbc.com/select/best-uses-chase-sapphire-preferred-100k-point-welcome-bonus/

Currently, you can use the points you earn and the promotion points if you get them quickly enough as statement credits worth 1.25% (highest benefit) for restaurant charges, groceries, HomeDepot..etc, and some others.

This is good until end of August/Sept (I think).

The CC company is doing this, as so few people can travel, and it's a way to use the points instead of cancelling the card that people will like.

In the rewards program (or from Chase account), to go redeem points and you will see the possible choices.

 

[BlueberryPie]

Obtained or closed?