Latest news with #creditcardrewards
CNET
08-07-2025
- Business
- CNET
The New Chase Sapphire Reserve Is an Expensive Waste of Time. Here's Why I'm Skipping It
Chase/CNET The Chase Sapphire Reserve®* now includes new rewards, annual credits and memberships, like Apple Plus and Apple Music, valued at $250 a year (ends June 22, 2027). Chase updated the card earlier this month, and the updates sound good on paper (aside from the larger $795 annual fee), but there are some fine-print changes that aren't great. The short version is this -- cardholders will now have to do more work to get enough value from the card to cover its cost. That likely means the average credit cardholder won't even want to consider this as an option. Which is fair -- the updates put me off from applying for the card, too. I don't think you should have to redeem dozens of credits, sign up for several complimentary subscriptions, only book flights and hotels when your points are boosted, or feel like you have to buy a Peloton to make sure you're getting enough value to justify a card's annual fee. There are some important changes to the card's rewards, too. It has a larger welcome offer and new rewards rates, and, less excitingly, Chase is changing how it values the card's points. The card issuer also changed who is eligible for the welcome offer on its Sapphire cards. I'm sure some travel and credit card experts will disagree, and could easily get enough value to justify the higher cost of the card, but for credit cardholders like myself who would rather have a more automated, streamlined experience, it's not worth the extra effort. Here's everything Chase changed with its Sapphire Reserve update. What does the new Chase Sapphire Reserve look like? Chase has changed the card's rewards and how much they're worth when it's time to redeem. New and old rewards compared New rewards Old rewards 8x points for all travel booked through Chase Travel 10x points for booking hotels and rental cars through Chase Travel 4x points on flights and hotels booked directly 5x points on flights booked through Chase 3x points on dining 3x points for all other travel 1x point for everything else 1x point for everything else These changes are good. Dining rewards seem like a no-brainer on a travel card, and it's something I was surprised to not see on the card originally. Also, not needing to always book through Chase Travel opens more travel and earning opportunities. The card also includes a higher welcome offer: 100,000 bonus points and a $500 Chase Travel℠ credit for spending $5,000 in the first three months from account opening. Chase also changed some of the eligibility requirements for its Sapphire card's welcome offers. Whereas previously, you could earn a Sapphire welcome bonus (from either the Chase Sapphire Preferred® Card* or Sapphire Reserve) once every 48 months, you can now only earn one bonus for either card per cardholder lifetime. For example, since I have the Sapphire Preferred and have already earned its welcome offer, if I applied for the Reserve, I wouldn't be eligible to earn the new welcome offer. This unfortunate change doesn't do much to incentivize an upgrade. Chase also changed the value of the rewards you earn with its new Points Boost program. You used to be able to redeem your points for travel through Chase at a bonus value of 1.5 cents per point. Now, you'll earn 2 cents per point, but only with rotating boosted redemption flights and hotels. And if you redeem your points for any nonboosted flight or hotel, they'll only be worth 1 cent each. You can still transfer your points at a 1:1 ratio to Chase's travel partners. This is clearly less flexible than the card's previous reward program, and will likely cause cardholders to miss out on value they would've otherwise secured. What if there are no boosted flights or hotels for when and where you're looking to travel? You'll either need to wait or have less of your trip covered. Or, you could transfer your points where they could be worth more -- but again, that takes more work than simply redeeming through your card issuer's portal for a small bonus, as it was before. The Sapphire Preferred now uses the Points Boost program as well. New annual credits The card is also gaining a handful of new annual credits: $500 The Edit℠ credit: The Edit is Chase's new collection of over 1,100 hotels. You get $250 from January to June, and the other $250 from July to December. The Edit is Chase's new collection of over 1,100 hotels. You get $250 from January to June, and the other $250 from July to December. $300 dining credit: Again, split in half -- $150 for January through June, and the other $150 for July to December. Again, split in half -- $150 for January through June, and the other $150 for July to December. $300 StubHub credit: $150 for January through June, $150 for July to December. Ends Dec. 31, 2027. $150 for January through June, $150 for July to December. Ends Dec. 31, 2027. Apple Plus and Apple Music membership , worth $250 annually. Ends June 22, 2027. , worth $250 annually. Ends June 22, 2027. $120 Peloton credit: You get $10 monthly statement credits for a Peloton membership through Dec. 31, 2027, for a maximum of $120 annually. Plus, you'll earn 10x rewards on Peloton equipment purchases. Those are the new credits; there are a number of others, too. You can see them all on Chase's page. The issuer says the card offers more than $2,700 in value, but you'll really need to work to achieve that. For those who spend $75,000 in travel on the card in a calendar year, you'll unlock a $500 Southwest travel credit plus A-list status, IHG Diamond Elite Status and $250 in statement credits for The Shop at Chase. That's a high spending threshold that only the most well-off traveller will likely be able to reach, and it doesn't seem like a great return on investment. And a higher fee Lastly, the card now costs $245 more than it did a month ago. The annual fee for the Chase Sapphire Reserve now sits at $795, one of the highest on the market. While the credits offered can surpass the price of the card, you'll need to do the work to use everything it has to offer. That means buying and using a Peloton, checking the Points Boost program, ordering DoorDash, using Lyft and taking advantage of the new dining credit and two travel credits, and on and on. It's a lot of homework. If you don't use enough of the extra perks, you'll likely be on the hook for at least part of its annual fee. Should you get this card? In short, I think there are people who will find this card worth it, particularly those with higher-than-average travel budgets (and perhaps some sort of assistant to help them keep track of everything), but for the average traveler or credit cardholder, they are more likely to leave value on the table and be stuck with a high annual fee. There's just so much offered here, which is great, but the change in how points are valued, how much additional work you, as the cardholder, have to do annually to make the card's $795 fee actually worth the cost, doesn't add up to me. But again, I probably view credit cards a bit differently than most card experts. I like the easy route, the one that guarantees value without any financial corrosion or work beyond my usual routine. So I'll happily stick with my Sapphire Preferred, which offers way less, but only costs $95 each year. I use it for my dining and travel expenses, redeem my points for trips home through Chase Travel and take advantage of its annual $50 hotel statement credit. There may not be countless annual credits, memberships and subscriptions, but I barely need to do any additional work -- and definitely don't need to overspend -- to realize its value versus how much it costs me annually. *All information about the Chase Sapphire Reserve and Chase Sapphire Preferred has been collected independently by CNET and has not been reviewed by the issuer.
Forbes
07-07-2025
- Business
- Forbes
You Need To Spend $75K For Top-Tier Chase Sapphire Rewards—Is It Worth The Cost?
Editorial Note: We earn a commission from partner links on Forbes Advisor. Commissions do not affect our editors' opinions or evaluations. Chase's announcement of huge changes to the rewards structure and annual fee of the coveted Chase Sapphire Reserve® card, effective as of June 23, 2025, may change its viability in the eyes of frequent travelers. Along with a steep annual fee hike from $550 to $795 and a new points system that deviates from a reliance on the Chase portal, cardholders must hit a yearly spend of $75,000 to unlock specialized perks, which include: IHG One Rewards Diamond Elite Status $500 Southwest Airlines Chase Travel℠ credit Southwest Airlines A-List Status $250 Credit for Chase's shopping platform, The Shops The Diamond Elite status is the highest tier available at IHG Hotels & Resorts. It includes resorts under the IHG banner, such as Holiday Inn, Hotel Indigo, InterContinental Hotels & Resorts, and Crowne Plaza Hotels & Resorts. To earn Diamond Elite, one normally needs to book 70 qualifying nights at IHG hotels or rack up 120,000 qualifying points per calendar year. Members earn all benefits available to Platinum Elite members, along with a few add-ons, which include: Free internet access Early check-in, upon request, and subject to availability 100% bonus earnings on top of base points Dedicated support phone line for Diamond Elite members Welcome amenity (free breakfast, per night for up to two people), points (per stay), or a drink and a snack per stay— at check-in Points don't expire while you have elite status Southwest A-list nets members an array of perks that can save them time and money. A member would normally have to book 20 qualifying one-way flights through the airline directly or rack up 35,000 points per calendar year to qualify for the tier. Benefits include: Priority boarding: Everyone on your reservation gets to board earlier First checked bag is free, second checked bag is $35 Same-day stand-by, even with basic fares Priority lane and express lane Dedicated A-list member phone line 25% earning bonus: Earn bonus points on every qualifying flight Southwest baggage and seating benefits have a value of $100 around per flight if you're someone who opts in to board early, with checked luggage normally $45 for the first bag. The $500 Southwest credit automatically applies when booked through the Chase portal. While it's a given that $75,000 is a huge spend that most Americans can't afford, with 47% of American households making under that much per year, the Sapphire Reserve card targets a high-earning demographic. Still, a study by CreditKarma revealed that the average annual income of people who matched with the card came out to be $107,499, and after taxes, the $75,000 spend seems unachievable for a large portion of the cardholder base. Even for those who'd have no trouble meeting the spend, the rewards may seem trivial and restrictive for the scale. Standout perks with the IHG Diamond Elite status include free breakfast and the option of a free drink or snack, but those who spent $75,000 for the perk might feel a little insulted. *The information for the following card(s) has been collected independently by Forbes Advisor: GO2bank Secured Visa® Credit Card . The card details on this page have not been reviewed or provided by the card issuer. Was this article helpful?
ABC News
27-05-2025
- Business
- ABC News
Here's what you need to know about credit card reward points
Movie tickets, department store wares and flights are just some of the things people 'pay' for using credit card reward points. Perhaps you've seen someone relishing their business class upgrade, partly 'paid' for with points, on social media. But, Angel Zhong — a professor of finance at RMIT University in Naarm/Melbourne — says points also come with risks. If credit card point programs are a mystery to you, here's what you need to know. Credit card rewards schemes, including point programs, vary from lender to lender, but the basic principles of each have a lot in common. Professor Zhong says, "it really depends on the specific terms and conditions, but usually you get points for every dollar that you spend." Reward points can then be spent on perks and benefits which differs between credit cards and institutions, but can include gift cards, retail purchases and discounted travel offers. These type of credit cards may "also offer exclusive perks", such as "access to airport lounges, travel insurance and concierge services". The government's MoneySmart site says credit card reward programs "sound good" because "you could earn points you can use to buy movie tickets or flights" just by spending on the card. Toni Eager is a senior marketing lecturer at the Australian National University in Canberra, on the land of the Ngunnawal and Ngambri people. She says rewards schemes, including points are "a way of keeping customers". "People might like certain reward schemes more than others, or it's something that keeps people using the card that they already have rather than going out and looking for cheaper interest rates." Dr Eager says consumers need to be financially literate to get good value from reward points schemes, which reward spending. "Whether it encourages people to overspend or changes their spending habits comes down to financial literacy." Consumer group Choice says credit cards are not for everyone. "Unless you're a big spender, credit cards with rewards schemes are mostly a gimmick, and they nearly always charge hefty annual fees and high interest rates." These costs can "easily nullify the rewards". Professor Zhong also says to be mindful that "you pay for what you get." Credit cards with extra perks will also have higher fees and interest rates. "It makes them more costly if you don't pay your balances in full or on time." She also warns that banks and lenders can change their loyalty programs including the value of points, and points can also expire. "Read the terms and conditions carefully, especially when it comes to the changing value of your points." Prfoessor Zhong says, "point hackers" are people who regularly open and cancel credit cards. The practice is known as "credit card churning". "You open multiple credit cards to take advantage of the bonuses, and then you close them and repeat the process again with new cards." She says many lenders waive the first annual fee for these types of credit cards, which can also come with bonus offers (additional points or cashback for example) and a zero per cent balance transfer fee for a set period. The card can then be cancelled before the annual fee for the second year is charged. Initial bonuses usually come with conditions, such as "spending a certain amount in the first three months". Professor Zhong says credit card churning can lower your credit score, and "frequent credit card application and cancellation might be a bit of a red flag" if you're applying for a mortgage. Doing this with different credit cards simultaneously increases the risk you miss a repayment, or you fail to make full use of the rewards, she says. MoneySmart recommends looking for a low interest rate and features you'll use in a credit card. If you're considering a credit card with a reward scheme, "check if the benefits you get are worth the higher cost". Professor Zhong says to "choose a card that aligns with your spending habits so that you can maximise the points [and] maintain a healthy financial lifestyle".
