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In 2016, the Chase Sapphire Reserve claimed the (unofficial) throne of rewards credit cards. It didn’t really matter if you were a single business traveler who lived in Manhattan or a family of four from Omaha, the Sapphire Reserve was the rewards card to beat for those serious about their rewards. It offered, and still offers, 3 transferable points per dollar on travel and dining worth at least 1.5 cents each, a $300 annual travel credit, Priority Pass membership and a litany of other perks. The huge 100k sign-up bonus available at launch certainly didn’t hurt its explosion onto the scene, but even with the 50,000 point bonus that has persisted for close to two years, the card has been a force to be reckoned with.
But — very recently — it feels like other rewards cards may be lining up to overthrow the king. Families who felt tethered to the Chase Sapphire Reserve over the last two years can potentially now do better elsewhere. Even if you maintain your allegiance to this king in the end, at the very least, it is time to look around.
Earn More Points With “Half” The Annual Fee
Let’s talk about the American Express® Gold Card, which, as of its relaunch earlier this month, now buries much of the competition by offering 4 Membership Rewards points per dollar at US supermarkets (up to $25,000; then 1x) and US restaurants. It also awards a $100 airline fee credit and a $10 monthly statement credit each month (up to $120 per calendar year) when you dine at participating restaurants. The card does all this and more with an annual fee ($250) that is just a little over half the amount of Sapphire Reserve’s annual fee ($450).
While TPG values Chase Ultimate Rewards points at 2 cents each and Amex Membership Rewards points slightly less at 1.9 cents each, the math of 4x points on dining the Amex Gold versus 3x on dining via the Sapphire Reserve works in favor of earning 4 Membership Rewards points.
A majority of our family’s daily spending is frequently spent on US dining and in US supermarkets, so racking up 4 transferrable points per dollar in those categories is huge and would be more rewarding for us than what any other card can offer on those purchases.
The Coming King Of Airfare And Dining
If the American Express Gold Card is the newest champion for dining charges, at least within the US, the forthcoming champion may be the Citi Prestige. Oh, and it is about to take the crown for air travel charges, too.
Starting in January 2019 (actual date is still TBD), the Citi Prestige will open again for new applicants with a revamped card. The revamped card will earn 5x points on dining and air travel and 3x points on cruise lines. Additionally, Citi’s expanding the current $250 annual air travel credit to be a $250 credit for a broader category of travel purchases.
There are some negative changes coming along with the good news, such as the 4th hotel night free benefit being capped at twice per year. However, for most families, that is a moot point as I don’t know many family travelers who stay on paid rates for four nights in a row or more at the same hotel more frequently than twice per year.
While the Platinum Card® from American Express also offers 5x on flights, just as the Citi Prestige will offer, I vastly prefer the built-in trip protections afforded by the Citi Prestige to what Amex offers. This $495 per year card would likely get my airfare and dining charges once the new version comes online in January.
No More Mickey With Chase
This is a story aimed at families who like to maximize their points, so given that Disney’s Magic Kingdom alone gets more annual visitors than all of Hawaii, I must mention what has happened in recent months with Chase Ultimate Rewards points and Disney. This year, the Chase Sapphire Reserve card has gone from earning points worth 1.5 cents each to book Disney Resorts, Disney Cruises and Disney Park tickets to having points that can’t be used for anything Disney.
For those families with a points-fueled Disney in their radar, this was a very real and tangible blow to the overall value proposition of the card. It is worth noting that Citi ThankYou points can still be used to book Disney resorts and tickets.
The King Has Not Left The Building
From the perspective of earning as many transferrable points as possible on dining and airfare, there are conceivable (better) alternatives to the Sapphire Reserve, but the war is not over. Frankly, I don’t see the Sapphire Reserve getting pried out of my cold hands anytime soon because my own family’s travel redemption patterns value the Ultimate Rewards transfer partners. Being able to earn points that can be used for Hyatt, United and Southwest is unique to Ultimate Rewards, and an immensely useful way for my family to get where we want to be for less.
Also note that the Sapphire Reserve doesn’t have the US restriction on bonus points in the dining category that comes with the Amex Gold. It also awards 3 points per dollar on travel as a whole, whereas the Citi Prestige will limit the 5x bonus to airfare and a 3x bonus on cruises.
However, it is conceivable that we will not be a two CSR card family at some point in the future as we potentially trade away one of them for a card that has strengths in different areas, such as the Citi Prestige. Consolidating our Ultimate Rewards strategy hasn’t been a priority in the past, but with the new options in town, I see at least a bit of a wallet shake-up in our future.
Bottom Line
Competition is good, at least to a point. I don’t know where the ceiling is on credit card rewards, but the Chase Sapphire Reserve was not the end of the one-upmanship story. It took a couple of years, but other banks seem to have developed truly competitive cards, earnings and benefit line-ups to challenge the Sapphire Reserve. Will these challengers dethrone the Chase Sapphire Reserve in your wallet?
Source: thepointsguy.com