Chase Sapphire Preferred vs Reserve vs Freedom Unlimited: Which Card?
Choosing the right travel rewards credit card can feel overwhelming. With so many options, it’s tough to know where to start. If you’re considering a Chase card, you’re on the right track; they offer some of the best travel perks.
This comparison dives deep into the Chase Sapphire Preferred and Chase Sapphire Reserve cards. We’ll explore the benefits, drawbacks, and who each card is best suited for. Understanding the nuances between these two cards, along with the Freedom Unlimited is key to maximizing your rewards.
Whether you’re a seasoned traveler or just starting out, this guide will help you determine which Chase card aligns with your spending habits and travel goals. Get ready to unlock valuable rewards and elevate your travel experiences. Let’s find the perfect card for you!
Specs at a Glance:
| Feature | Chase Sapphire Preferred | Chase Sapphire Reserve |
|---|---|---|
| Rewards on Travel | 2x | 3x |
| Rewards on Dining | 3x | 3x |
| Annual Fee | $95 | $550 |
| Travel Credit | N/A | $300 Annual Travel Credit |
| Application for Global Entry/TSA PreCheck Credit | N/A | Up to $100 |
| Points Value through Chase Travel | 25% more | 50% more |
| Trip Cancellation/Interruption Insurance | Yes | Yes |
| Primary Auto Rental Collision Damage Waiver | No | Yes |
| Airport Lounge Access | No | Yes, Priority Pass Select |
| Purchase Protection | Yes | Yes |
| Extended Warranty Protection | Yes | Yes |
| Foreign Transaction Fees | None | None |
Feature-by-Feature Breakdown
Annual Fee
- Chase Sapphire Preferred: $95 annual fee. Offers a lower barrier to entry compared to the Reserve, making it more accessible. However, the benefits are less extensive, and you won’t get as much value back if you don’t travel frequently.
- Reserve: $550 annual fee. This higher fee is offset by a $300 annual travel credit and other premium perks. The fee can be difficult to justify for those who don’t utilize the benefits.
- Winner: Preferred
Rewards on Travel & Dining
- Chase Sapphire Preferred: Earns 2x points on travel and dining. A solid earning rate for these common spending categories, providing good value for everyday use.
- Reserve: Earns 3x points on travel and dining, significantly boosting your rewards. This is a major advantage for frequent travelers and diners.
- Winner: Reserve
Rewards on Other Purchases
- Chase Sapphire Preferred: Earns 1x point on all other purchases. A standard earning rate.
- Reserve: Earns 1x point on all other purchases. A standard earning rate.
- Winner: Tie
Travel Benefits
- Chase Sapphire Preferred: Includes trip cancellation/interruption insurance, baggage delay insurance, and auto rental collision damage waiver. Provides some basic travel protections.
- Reserve: Offers all the Preferred benefits, plus primary auto rental collision damage waiver, and access to airport lounge access via Priority Pass Select. Offers more comprehensive travel protection.
- Winner: Reserve
Transfer Partners
- Chase Sapphire Preferred: Allows point transfers to various travel partners, increasing the redemption value. Offers a good selection of partners.
- Reserve: Allows point transfers to various travel partners, increasing the redemption value. Offers the same selection of partners as the Preferred.
- Winner: Tie
Sign-Up Bonus
- Chase Sapphire Preferred: Offers a sign-up bonus, providing a significant initial point boost. The bonus is typically less valuable than the Reserve bonus.
- Reserve: Offers a higher sign-up bonus. Can provide a substantial value to offset the high annual fee.
- Winner: Reserve
Point Value
- Chase Sapphire Preferred: Points are worth 1.25 cents each when redeemed through Chase Travel. This provides a good value.
- Reserve: Points are worth 1.5 cents each when redeemed through Chase Travel, a higher redemption value. This gives more value per point.
- Winner: Reserve
Other Perks
- Chase Sapphire Preferred: Offers purchase protection and extended warranty. These are good benefits but are not as extensive as the Reserve.
- Reserve: Includes a $300 annual travel credit, Global Entry/TSA PreCheck credit, and DoorDash benefits. Provides several valuable perks.
- Winner: Reserve
Winner by Category:
| Category | Winner |
|---|---|
| Rewards on Travel | Chase Sapphire Reserve |
| Rewards on Dining | Tie |
| Annual Fee | Chase Sapphire Preferred |
| Travel Credits & Benefits | Chase Sapphire Reserve |
| Airport Lounge Access | Chase Sapphire Reserve |
| Overall Value | Chase Sapphire Reserve (for frequent travelers) / Chase Sapphire Preferred (for less frequent travelers) |
What They Have in Common:
- No Foreign Transaction Fees: Both cards do not charge foreign transaction fees, making them ideal for international travel.
- Rewards on Travel & Dining: Both cards offer elevated rewards on travel and dining purchases, allowing cardholders to earn points faster in these popular spending categories.
- Purchase Protection: Both cards provide purchase protection, safeguarding eligible purchases against damage or theft.
- Extended Warranty Protection: Both cards offer extended warranty protection, adding extra coverage to eligible purchases.
- Trip Cancellation/interruption Insurance: Both cards include trip cancellation and interruption insurance, protecting cardholders against unforeseen travel disruptions.
Chase Sapphire Preferred Vs Reserve Vs Freedom Unlimited Buying Guide
Earning Rewards
The Chase Sapphire Preferred offers a solid rewards structure, earning bonus points on travel, dining, and select streaming services. Cardholders earn 5x points on travel purchased through Chase Ultimate Rewards, 3x points on dining, and 2x points on all other travel. The Chase Reserve, on the other hand, provides even greater earning potential. It offers 5x points on flights and 10x points on hotels and car rentals purchased through Chase Ultimate Rewards, 3x points on other travel and dining, and 1x point on all other purchases. The Freedom Unlimited earns a flat rate of 1.5% cash back on all purchases, with bonus categories sometimes available.
Annual Fees & Benefits
The Chase Sapphire Preferred has a moderate annual fee, making it accessible to a wider range of cardholders. It comes with valuable benefits like travel and purchase protections. The Chase Reserve has a higher annual fee, reflecting its premium benefits, including a travel credit, Priority Pass Select lounge access, and more robust insurance coverage. The Freedom Unlimited has no annual fee, appealing to those seeking a cost-effective rewards card. It offers introductory 0% APR on purchases and balance transfers.
Travel Perks
Travel benefits are a key differentiator. The Chase Sapphire Preferred offers trip cancellation/interruption insurance, baggage delay insurance, and auto rental collision damage waiver. The Chase Reserve elevates these benefits, including a $300 annual travel credit, airport lounge access through Priority Pass Select, and higher levels of travel insurance coverage. The Freedom Unlimited, while not a travel card, still offers some basic travel protections. Each card offers different travel options and perks, allowing cardholders to select the card that aligns with their needs.
Redemption Options
All three cards participate in the Chase Ultimate Rewards program, providing flexible redemption options. Points can be redeemed for cash back, statement credits, gift cards, or travel. The Chase Sapphire Preferred and Reserve offer the added benefit of transferring points to airline and hotel partners for potentially greater value. The Freedom Unlimited offers a straightforward redemption process, making it simple to redeem rewards. Consider which redemption method is most valuable for your needs.
Spending Habits & Suitability
Consider your spending patterns. The Chase Sapphire Preferred is well-suited for those who spend moderately on travel and dining. The Chase Reserve is ideal for frequent travelers who can maximize its travel benefits and annual credit. The Freedom Unlimited is a great choice for those who want a simple rewards card with no annual fee and a good rate on all purchases. Each card is suited for different financial needs. Carefully review the card requirements, and your spending habits to determine which card is right for you.
Credit Score Requirements
Each card requires a certain level of creditworthiness. The Chase Sapphire Preferred typically requires good to excellent credit. The Chase Reserve generally requires excellent credit. The Freedom Unlimited is more accessible, often available to those with good credit. Always check the application requirements for each card. Credit score requirements are subject to change. Ensure you meet the minimum credit requirements of the card before applying.
Who Should Buy What?
Buy Chase Sapphire Preferred If…
- You want a card with a lower annual fee.
- You are looking for a strong rewards program on travel and dining.
- You value the ability to transfer points to travel partners.
- You don’t travel frequently enough to utilize the higher benefits of the Reserve.
Buy Chase Sapphire Reserve If…
- You travel frequently and can take advantage of the travel credits and benefits.
- You value airport lounge access.
- You want the best possible redemption value for your points.
- You’re willing to pay a higher annual fee for premium benefits.
Frequently Asked Questions
What is the Chase Ultimate Rewards program?
The Chase Ultimate Rewards program is Chase’s rewards program where cardholders earn points on purchases. These points can be redeemed for travel, cash back, gift cards, or transferred to partner airlines and hotels. The program is known for its flexibility and value, especially when transferring points to travel partners such as United, Southwest, and Hyatt. Points are worth more when redeemed for travel.
How do I redeem points for travel?
You can redeem points for travel through the Chase Ultimate Rewards portal or by transferring them to partner airlines and hotels. Through the portal, you can book flights, hotels, car rentals, and activities. Transferring points to partners can sometimes offer even greater value, especially for premium travel experiences. The process is easy and offers flexibility in how you use your points.
What is the value of a Chase Ultimate Rewards point?
The value of a Chase Ultimate Rewards point varies depending on how you redeem it. Redeeming points for cash back typically yields a value of 1 cent per point. When booking travel through the Chase Ultimate Rewards portal, points are worth 1.25 cents each for the Sapphire Preferred and 1.5 cents each for the Reserve. Transferring points to partners can potentially yield even higher values.
What is the $300 annual travel credit on the Chase Reserve?
The $300 annual travel credit on the Chase Reserve automatically reimburses cardholders for travel purchases made each year. This credit is applied to various travel expenses, including flights, hotels, car rentals, and other travel-related purchases. The credit helps offset the card’s annual fee. The credit applies to eligible travel purchases, providing a significant benefit to cardholders.
What is Priority Pass Select lounge access?
Priority Pass Select is a program that grants access to airport lounges worldwide. The Chase Reserve cardholders receive a complimentary Priority Pass Select membership, allowing them to relax in airport lounges. These lounges offer comfortable seating, complimentary food and beverages, Wi-Fi, and other amenities. It provides a more pleasant travel experience.
Can I transfer my Chase Ultimate Rewards points between cards?
Yes, you can transfer your Chase Ultimate Rewards points between eligible Chase cards within the same household. This includes transferring points from the Freedom Unlimited to the Sapphire Preferred or Reserve, allowing you to take advantage of the travel benefits and potentially higher redemption values. This is a great way to maximize your points.
How do I apply for a Chase credit card?
You can apply for a Chase credit card online through the Chase website, or in person at a Chase branch. You’ll need to provide personal information and financial details. Ensure you meet the card’s credit score requirements before applying. Approval depends on your creditworthiness, income, and other factors. Check the application requirements before applying.
Final Verdict
Choosing between these cards depends on individual spending habits and travel frequency. The Chase Sapphire Preferred offers a strong balance of rewards and benefits for a moderate annual fee. The Chase Reserve provides premium travel perks and higher earning potential, suitable for frequent travelers. The Freedom Unlimited is ideal for those seeking simplicity and no annual fee. It offers a good earning rate on all purchases.
Winner: Chase Sapphire Preferred