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The Chase Sapphire Reserve® made headlines last week when Chase announced a $100 annual fee increase, from $450 to $550. The news had current and prospective applicants second-guessing whether the popular card was still worthwhile.
Potential cardholders had four days to apply for the card before the fee rose to $550 on January 12, 2020. Meanwhile existing cardholders are able to renew at $450 for another year if their renewal date is before April 1, 2020. Any renewals after that date incur the new $550 fee.
Chase added new DoorDash and Lyft benefits to help compensate for the fee hike, but many consumers were unsure if the new perks offset the fee. And if you don't frequently use either service, it may not be enough to offset the cost of the annual fee. That's the issue I'm personally running into.
Below, I explain why I plan to cancel my Chase Sapphire Reserve before I'm billed the increased annual fee next year.
Here's why I plan to cancel my Chase Sapphire Reserve
I had been contemplating opening the Chase Sapphire Reserve for at least a year before I submitted an application two weeks ago, before I learned the annual fee would increase.
Initially, I justified paying the $450 annual fee because I liked the card's generous welcome bonus, and I was planning to take full advantage of the annual $300 travel credit and $100 credit toward a Global Entry or TSA application fee. Combined those perks were more than worth $450. But after the annual fee increased, I wanted to crunch the numbers to find the card's long-term value, based on how I plan on using it.
Here's a breakdown of the approximate value of each benefit that could easily receive a dollar amount.
Welcome bonus
I qualified for a welcome bonus of 50,000 bonus points after I opened my card. The current welcome bonus is also 50,000 points when you spend $4,000 on purchases in the first three months. This is worth up to $750 toward travel when you redeem through Chase Ultimate Rewards® since points are worth 50% more when used that way.
Keep in mind that welcome bonuses are a one-time offer. So you can't count on this to offset the annual fee after the first year.
Cardholder value: Up to $900 in year one (with current bonus).
My value: $750 in year one, since I plan to redeem for the maximum value.
Annual travel credit
The Sapphire Reserve provides a generous annual travel credit that can be used to offset the cost of travel ranging from airfare and hotels to tolls and rental cars.
Cardholder value: Up to $300 a year.
My value: $300 each year, I plan on maxing out this credit to cover vacation costs, as well as everyday expenses like tolls.
Global Entry or TSA PreCheck credit
Cardholders receive an application fee credit for Global Entry ($100) or TSA PreCheck ($85) every four years. It's generally recommended that you apply for Global Entry rather than TSA PreCheck. For just $15 more, Global Entry grants you access to both.
Cardholder value: Up to $100 every four years.
My value: $100 every four years, I already have TSA PreCheck which doesn't expire for a few years, but will apply for Global Entry. But after year one, it will be another four years before I can take advantage of this credit again.
Priority Pass Select membership
This perk provides access over 1,000 airport lounges worldwide after a one-time enrollment.
Cardholder value: $429 a year.
My value: $0, since I only fly once or twice a year and often out of terminals that don't have Priority Pass lounges.
DoorDash benefits
The DoorDash benefits are worth up to a combined $320:
- DoorDash credits: $120 statement credit ($60 in 2020 and $60 in 2021).
- DashPass membership for a minimum of one year and up to two years: Up to $200, depending on when you activate (no later than Dec. 31, 2021).
If you use delivery services like DoorDash, a complimentary DashPass membership may be a nice perk, providing free delivery and lower service fees from hundreds of restaurants on orders of $12 or more. And if you currently use a competitor, like Seamless, GrubHub or Postmates, this may be enough to convince you to switch services.
But that's not the case for me. I don't use food delivery services so this benefit isn't one I'm particularly excited about. Granted, I won't turn down 'free' money, so I already signed up and used about $20 of the DoorDash credit on an ice cream order. I'll likely spend up to the $60 credit to take full advantage of this perk and only use restaurants that are eligible for DashPass to minimize fees.
It's also important to note that these benefits are for up to two years — there's currently no indication they'll be renewed. That means you shouldn't bank on these perks to offset the annual fee every year since, as of now, they're temporary.
Cardholder value: Up to $320, which works out to up to $160 in 2020 and $160 in 2021.
My value: $320, which is $160 in 2020 and $160 in 2021.
Lyft benefits
Cardholders can earn 10X points on Lyft purchases through March 2022 and can also benefit from a year of complimentary Lyft Pink membership. Lyft Pink is worth $19.99 per month and includes 15% off car rides, relaxed cancellations, priority airport pickups, up to three free 30-minute bike and scooter rides per month and more.
Just like the DoorDash benefits, the Lyft Pink membership is only for a limited time, so you shouldn't bank on it offsetting the annual fee long-term.
Cardholder value: $239 for a year.
My value: $0 since I rarely use rideshares. I'll sign up, but don't plan on using this service.
Bottom line
Cardholder's total value: Up to $2,128 in year one, assuming you earn the welcome bonus; up to $889 in year two; and up to $729 in other years (not including the Global Entry/TSA PreCheck credit every four years worth $100).
My total value: $1,310 year one; $460 year two; and $300 in other years (not including the Global Entry credit every four years worth $100).
Cardholders who take full advantage of all the card benefits can more than offset the annual fee, however when I crunch the numbers it's clear I'm $90 to $250 short of recouping the fee after my first year of account opening. And when I consider how much I'll use the card (approximately $4,000 annually), that only equates to about $180 in rewards when redeemed through the Ultimate Rewards® portal.
If you fit my profile, then you may feel the same and contemplate canceling your Chase Sapphire Reserve. Experts generally don't recommend canceling your credit card since it can have a negative affect on your credit score. But paying a high annual fee that's not worthwhile can be an exception. (Learn how to cancel a credit card.)
However, you can also consider downgrading your Sapphire Reserve to another Chase card, such as the Chase Sapphire Preferred® Card, which has a lower $95 annual fee, or the no annual fee Chase Freedom Unlimited® (see rates and fees).
Alternatives to the Chase Sapphire Reserve
If you're considering opening a different travel card, consider these alternatives which have annual fees of $325 or $695*.
The American Express Gold Card is great for earning valuable Membership Rewards® points at restaurants worldwide and U.S. supermarkets.
- You can earn $400+ in dining and rideshare credits every year (Enrollment required for select benefits mentioned)
- Exceptionally rewarding for eligible restaurant and U.S. supermarket purchases
- No foreign transaction fees
- Larger annual fee
- Credits are more complicated, you earn them monthly or semi-annually
Highlights
Highlights shown here are provided by the issuer and have not been reviewed by CNBC Select's editorial staff.
- You may be eligible for as high as 100,000 Membership Rewards® Points after you spend $8,000 in eligible purchases on your new Card in your first 6 months of Card Membership. Welcome offers vary and you may not be eligible for an offer. Apply to know if you're approved and find out your exact welcome offer amount – all with no credit score impact. If you're approved and choose to accept the Card, your score may be impacted.
- Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year.
- Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year.
- New! Earn 5X Membership Rewards® points on prepaid hotel stays booked through AmexTravel.com or the Amex Travel App.
- Earn 3X Membership Rewards® points on flights booked through AmexTravel.com, the Amex Travel App, or purchased directly from airlines.
- Earn 2X Membership Rewards® points on prepaid car rentals booked through AmexTravel.com or the Amex Travel App and cruises booked and paid through AmexTravel.com.
- Earn 1X Membership Rewards® point per dollar spent on all other eligible purchases.
- Pay It® lets you tap in the American Express® App to quickly pay for small purchase amounts throughout the month and still earn rewards the way you usually do. Plan It® gives you the option to split up big purchases into equal monthly payments with a fixed fee. You'll know upfront exactly how much you'll pay.
- Updated! $120 Dining Credit: Earn up to a total of $10 in statement credits monthly when you pay with the Gold Card at Grubhub (including Seamless), Buffalo Wild Wings, Five Guys, The Cheesecake Factory, and Wonder. This can be an annual savings of up to $120. Enrollment required.
- $100 Resy Credit: Get up to $100 in statement credits each calendar year at over 10,000 qualifying U.S. Resy restaurants after you pay for eligible purchases with the American Express® Gold Card. That's up to $50 in statement credits semi-annually. Enrollment required.
- $84 Dunkin' Credit: Earn up to $7 in monthly statement credits after you pay with the American Express® Gold Card at U.S. Dunkin' locations. Enrollment required.
- $120 Uber Cash on Gold: Enjoy up to $120 in Uber Cash annually with your Gold Card. Just add your Card to your Uber account and you'll get $10 in Uber Cash each month to use on orders and rides in the U.S. when you select an Amex Card for your transaction.
- New! As an American Express® Gold Card Member, you can enjoy complimentary Hertz Five Star® Status. Enjoy benefits like skipping the counter at select locations, adding an additional driver at no additional cost*, and vehicle upgrades**. Benefit enrollment and Hertz Gold+ registration are required. *Additional drivers must meet standard rental qualifications and must be a spouse or domestic partner to qualify as complimentary. Other additional drivers subject to fees. **Benefits are subject to availability and vary by location. Additional Hertz program Terms and Conditions including age restrictions apply.
- Take advantage of a $100 credit towards eligible charges* at over 1,300 upscale hotels worldwide when you book The Hotel Collection through AmexTravel.com or the Amex Travel App **. *Eligible charges vary by property. **The Hotel Collection requires a two-night minimum stay.
- Book your travel through the Amex Travel App with added peace of mind – backed by American Express® service and support. Only for American Express® Card Members.
- Whenever you need us, we're here. Our Member Services team will ensure you are taken care of. From lost Card replacement to statement questions, we are available to help 24/7.
- No Foreign Transaction Fees.
- Annual Fee is $325.
- Terms Apply.
- See Rates & Fees
Foreign transaction fee
None
Competing luxury travel card with a higher fee
The American Express Platinum Card® is a premium card loaded with annual statement credits, entertainment benefits, extensive airport lounge access, elite status perks and more. (Enrollment required for select benefits mentioned)
- Access to 1,550+ airport lounges, including Priority Pass™ Select lounges (enrollment required) and Amex Centurion lounges
- Statement credit offers worth up to twice what the annual fee costs
- Elite status perks for hotels and rental cars (Enrollment required for select benefits mentioned)
- High annual fee
- Many statement credit offers are complicated and are earned in increments or limited to specific purchases
Highlights
Highlights shown here are provided by the issuer and have not been reviewed by CNBC Select's editorial staff.
- You may be eligible for as high as 175,000 Membership Rewards® points after you spend $12,000 in eligible purchases on your new Card in your first 6 months of Card Membership. Welcome offers vary and you may not be eligible for an offer. Apply to know if you're approved and find out your exact welcome offer amount – all with no credit score impact. If you're approved and choose to accept the Card, your score may be impacted.
- Get more for your travels with 5X Membership Rewards® points on all flights and prepaid hotel bookings through American Express Travel®, including Fine Hotels + Resorts® and The Hotel Collection bookings. You earn 5X points on flights purchased directly from airlines or through American Express Travel® on up to $500,000 on these purchases per calendar year.
- With over 1,550 airport lounges - more than any other credit card company on the market* - enjoy the benefits of the Global Lounge Collection®, over $850 of annual value, with access to Centurion Lounges, 10 complimentary Delta Sky Club® visits when flying on an eligible Delta flight (subject to visit limitations), Priority Pass Select membership (enrollment required), and other select partner lounges.* As of 07/2025.
- $200 Uber Cash + $120 Uber One Credit: With the Platinum Card® you can receive $15 in Uber Cash each month plus a bonus $20 in December when you add your Platinum Card® to your Uber account to use on rides and orders in the U.S when you select an Amex Card for your transaction. Plus, when you use the Platinum Card® to pay for an auto-renewing Uber One membership, you can get up to $120 in statement credits each calendar year. Terms apply.
- $300 Digital Entertainment Credit: Experience the latest shows, news and recipes. Get up to $25 in statement credits each month when you use your Platinum Card® for eligible purchases on Disney+, a Disney+ bundle, ESPN streaming services, Hulu, The New York Times, Paramount+, Peacock, The Wall Street Journal, YouTube Premium, and YouTube TV when you purchase directly from one or more of the providers. Enrollment required.
- $600 Hotel Credit: Get up to $300 in statement credits semi-annually on prepaid Fine Hotels + Resorts® or The Hotel Collection* bookings through American Express Travel® using the Platinum Card®. *The Hotel Collection requires a minimum two-night stay.
- $400 Resy Credit + Platinum Nights by Resy: Get up to $100 in statement credits each quarter when you use the Platinum Card® to make eligible purchases with Resy, including dining purchases at U.S. Resy restaurants. Enrollment required. Plus, with Platinum Nights by Resy, you can get special access to reservations on select nights at participating in demand Resy restaurants with the Platinum Card®. Simply add your eligible Card to your Resy profile to book and discover Platinum Nights reservations near you.
- $209 CLEAR+ Credit: CLEAR+ helps get you to your gate faster by using your face to verify you are you at 55+ airports nationwide. You can cover the cost of a CLEAR+ Membership* with up to $209 in statement credits per calendar year after you pay for CLEAR+ with your Platinum Card®. *Excluding any applicable taxes and fees. Subject to auto-renewal.
- $200 Airline Fee Credit: Select one qualifying airline and then receive up to $200 in statement credits per calendar year when incidental fees, such as checked bags and in-flight refreshments, are charged by the airline to the Platinum Card® Account. American Express relies on airlines to submit the correct information on airline transactions to identify incidental fee purchases. If you do not see a credit for a qualifying incidental purchase on your eligible Card after 8 weeks, simply call the number on the back of your Card. Qualifying airlines are subject to change. See terms & conditions for more details.
- Start your vacation sooner, and keep it going longer. When you book Fine Hotels + Resorts® through American Express Travel®, enjoy noon check-in, when available, and guaranteed 4PM check-out.
- $300 lululemon Credit: Enjoy up to $75 in statement credits each quarter when you use the Platinum Card® for eligible purchases at U.S. lululemon retail stores (excluding outlets) and lululemon.com. That's up to $300 in statement credits each calendar year. Enrollment required.
- $155 Walmart+ Credit: Receive a statement credit* for one monthly Walmart+ membership (subject to auto-renewal) after you pay for Walmart+ each month with the Platinum Card®.* Up to $12.95 plus applicable local sales tax. Plus Ups not eligible.
- Whenever you need us, we're here. Our Member Services team will ensure you are taken care of. From lost Card replacement to statement questions, we are available to help 24/7.
- $895 annual fee.
- Terms Apply.
- See Rates & Fees
Balance transfer fee
N/A
Foreign transaction fee
None
Don't miss
For rates and fees of the American Express Platinum Card®, click here
For rates and fees of the American Express® Gold Card, click here.
