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Chase Sapphire Reserve $795 Annual Fee: Better Alternatives & Rewards Tips
December 12, 2024
The premium credit card landscape just shifted dramatically. Chase announced that on June 23, 2025, the Chase Sapphire Reserve®, its premium travel credit card, is getting a near overhaul of its features and benefits, including an annual fee increase to $795. This represents a staggering 44.5% increase from the current $550 annual fee, making it more expensive than the competing Platinum Card® from American Express at $695 (see rates & fees).
What's Changing with the Chase Sapphire Reserve
The Price Hike Details
The annual fee is raised to $795 (from $550), and it gets worse for families – authorized user fees jump to $195 (from $75). For existing cardholders, these changes won't hit until October 26, 2025, but new applicants will face the higher fees starting June 23, 2025.
Rewards Structure Overhaul
The earning structure is getting a complete makeover with mixed results:
Winners:
- Earn 8x points on Chase Travel purchases (replacing the 10x points on hotels and car rentals through Chase Travel and 5x points on flights through Chase Travel)
- Earn 4x points when you book directly with an airline or hotel (replacing the 3x points on travel purchases category)
Losers:
- General travel purchases now earn just 1x points instead of the previous 3x points
- This includes mass transit, vacation rentals like Airbnb, and cruises
New Benefits to Justify the Higher Fee
Chase is adding several new perks to help justify the steep price increase:
- $500 The Edit credit: Receive up to $500 annual credit for prepaid bookings made with The Edit, a hand-picked collection of hotels and resorts
- $300 dining credit: Receive up to $300 annual credit (up to $150 from January through June and up to $150 from July through December) when dining with Sapphire Reserve Exclusive Tables
- $300 StubHub credit: Get up to $300 in annual statement credits on concert and event tickets purchased on StubHub and viagogo
- Complimentary Apple TV+ and Apple Music: Through June 22, 2027
The Bigger Picture: Premium Cards Are Getting More Expensive
This isn't happening in isolation. The premium credit card market is experiencing an arms race, with issuers adding more perks while simultaneously raising fees. American Express this week teased "major updates" coming to its own Platinum cards, suggesting more changes are coming across the industry.
Smart Alternatives to Consider
With the Sapphire Reserve's dramatic price increase, many cardholders are reconsidering their options:
Chase Sapphire Preferred® Card
[[ SINGLE_CARD * {"id": "509", "isExpanded": "false", "bestForCategoryId": "15", "bestForText": "Beginner and Expert Travelers", "headerHint": "Exceptional Value"} ]]
A less expensive choice within the Chase credit card ecosystem is the Chase Sapphire Preferred, with an annual fee of $95. It still offers strong travel rewards without the premium price tag.
Capital One Venture X Rewards Credit Card
[[ SINGLE_CARD * {"id": "2888", "isExpanded": "false", "bestForCategoryId": "15", "bestForText": "Frequent Travelers", "headerHint": "Unlock Benefits"} ]]
The Capital One Venture X Rewards Credit Card, with an annual fee of $395 (see rates & fees), earns 10x on hotels and rental cars and 5x on flights booked through Capital One Travel. It also includes a $300 annual travel credit and Priority Pass lounge access.
American Express Platinum
[[ SINGLE_CARD * {"id": "106", "isExpanded": "false", "bestForCategoryId": "15", "bestForText": "Premium Travel", "headerHint": "Exceptional Perks"} ]]
Ironically, with an annual fee of $695, the American Express Platinum Card currently sits alongside the Chase Sapphire Reserve at the top of the market — and is suddenly the cheaper to hold of the two.
How to Maximize Your Credit Card Value with Kudos Insights
While Chase is making its premium card more expensive, there are smarter ways to maximize your credit card rewards without paying sky-high annual fees. This is where strategic credit card management becomes crucial.
The Hidden Cost of Wrong Card Usage
Here's a shocking statistic: The average Kudos user with 2–3 cards misses out on $441 annually in extra rewards simply by not using the optimal card for each purchase. When you multiply this across all your spending, the average person leaves up to $2,800 on the table every year by not maximizing what their credit cards can actually do.
Three Strategies to Unlock Hidden Value
1. Optimize Every Purchase: Instead of paying $795 for one premium card, consider using multiple cards strategically. Kudos Insights analyzes your transactions and tells you exactly which card will earn you the most rewards for every purchase, so you never leave money on the table.
2. Don't Waste Existing Benefits: You might already be paying for valuable perks you're not using. The average Kudos user forgets to redeem $624 in card benefits each year. These include travel credits, complimentary memberships, rideshare credits, and purchase protections.
3. Evaluate Your Annual Fees: Kudos Insights helps users identify when a card is costing more than it's earning and suggests alternatives that could save money without losing key benefits.
The Bottom Line: Is the New Sapphire Reserve Worth It?
The brutal reality: This card is designed to be a part-time job – but it doesn't have to be. Chase is betting you won't actually use most of these credits, and historically, they're right. While the math looks impressive on paper ($2,300+ in potential credits), the average premium card holder uses less than 60% of available credits. That means most people are effectively paying $795 for benefits they'll never realize.
But here's what changes the game: Tools like Kudos eliminate the complexity entirely. Instead of manually tracking 8+ different spending categories, remembering activation deadlines, and monitoring biannual credit resets, Kudos automatically optimizes your credit card strategy. You get the benefits without becoming Chase's unpaid credit manager.
The smarter approach: Why pay $795 to juggle complicated credits when you can unlock $2,800+ in annual value from cards you already have? Kudos users earn more rewards with less effort – no spreadsheets, no activation hassles, no forcing your spending into specific merchants. You shop normally, and Kudos ensures you're always using the optimal card for maximum rewards. Premium cards are getting more expensive and complicated, but maximizing credit card rewards doesn't have to be. Let Kudos handle the optimization while you enjoy the benefits.
Smart Money Move: Optimize Before You Upgrade
Before jumping to expensive premium cards, consider optimizing your current credit card strategy. With the right approach, you can potentially earn more rewards from multiple mid-tier cards than from one expensive premium card. The key is understanding your spending patterns, maximizing existing benefits, and ensuring you're always using the best card for each purchase. In today's competitive credit card landscape, the smartest strategy isn't necessarily the most expensive one – it's the most strategic one for you and you alone. Looking to optimize your credit card strategy without the premium price tags? Consider free tools like Kudos that help you maximize your existing cards' potential while keeping annual fees reasonable. The goal isn't to have the most expensive cards – it's to earn the most value from the cards that make sense for your lifestyle and spending patterns.
Frequently Asked Questions
When do the Chase Sapphire Reserve changes take effect?
For new applicants: Changes go into effect on June 23, 2025. If you apply and are approved before this date, you'll pay the current $550 annual fee but won't get the new benefits until October 26, 2025.
For existing cardholders: You'll gain access to the new "Points Boost" feature on June 23, 2025, but all other benefits and the higher annual fee won't apply until October 26, 2025 (or your next renewal date if it's after that).
What's the new annual fee?
The annual fee is increasing from $550 to $795 - a 44.5% increase. The authorized user fee is also jumping from $75 to $195.
Can I still get the old deal?
Yes, but only briefly. If you apply before June 23, 2025, you'll pay the current $550 annual fee for your first year. However, you won't get the new benefits until October 26, 2025.
How are the earning rates changing?
New Earning Structure:
- 8x points on all travel booked through Chase Travel
- 4x points on flights and hotels booked directly
- 1x points on all other travel (down from 3x)
- Dining remains 3x points
What is "Points Boost" and how does it work?
Points Boost replaces the current 1.5 cents per point redemption value through Chase Travel™. Instead, you'll get:
- Up to 2 cents per point on select flights and hotels
- 1 cent per point on bookings not eligible for Points Boost
What happens to my existing points?
If you're a current cardholder or apply before June 23, 2025:
- Points earned before October 26, 2025, can still be redeemed at 1.5 cents per point until October 26, 2027
- You'll automatically get the best offer available (either Points Boost or 1.5 cents) during this transition period
After October 26, 2027: All redemptions will be subject to the new Points Boost system.
What new benefits are being added?
The card is adding over $2,700 in potential annual credits:
Travel & Dining Credits:
- $500 annual credit for The Edit (Chase's luxury hotel collection)
- $300 annual dining credit for Sapphire Reserve Exclusive Tables
- $300 annual StubHub credit for concert and event tickets
Lifestyle Credits:
- $250 annual credit for Apple TV+ and Apple Music
- $120 annual Peloton membership credit
- $120 annual Lyft credit
Status Benefits:
- Complimentary IHG One Rewards Platinum Elite Status
What benefits unlock at $75,000 spending?
After spending $75,000 in a calendar year, you'll get:
- IHG One Rewards Diamond Elite Status
- Southwest Airlines A-List Status
- $500 Southwest Airlines credit
- $250 credit for The Shops at Chase
Are these credits automatic?
Only the $300 travel credit is automatic. All other credits require activation and have specific terms, spending windows, and merchant restrictions. We'll remind you to activate your other credits with Kudos Insights!
Can I have both Sapphire Reserve and Sapphire Preferred?
Yes! Starting June 23, 2025, Chase is removing the "Sapphire family rule" that prevented you from having both cards simultaneously.
What about welcome bonus eligibility?
Chase is making significant changes:
- Good news: You can now apply for cards without welcome offers if you're over 5/24
- Bad news: The 48-month rule is being extended to longer than 48 months (exact timeframe not disclosed)
- New restrictions: Chase will use algorithmic factors to determine bonus eligibility, similar to Amex's "popup" system
Can I apply for a card without a welcome bonus?
Yes, for the first time, Chase will notify you during the application process if you're not eligible for a bonus and give you the option to continue anyway.
Is there a business version?
Yes! Chase is launching the Chase Sapphire Reserve for Business on June 23, 2025, with:
- Same $795 annual fee
- Similar benefits to the personal card
- Additional business-focused credits (ZipRecruiter, Google Workspace)
- $120,000 spending threshold for premium benefits
Is the new card worth the higher fee?
It depends on your spending habits. If you can maximize the new credits (over $2,700 potential value), the card could be worthwhile. However, many credits require active management and may not align with your natural spending.
Should I upgrade, downgrade, or stay put?
Consider upgrading if:
- You can easily use the new credits
- You value the additional benefits
- You're comfortable with the $795 fee
Consider downgrading if:
- You rarely use credits beyond the travel credit
- You primarily use the card for general travel (now only 1x points)
- The fee increase doesn't align with your card usage
What about credit card optimization instead?
Before paying $795 for one premium card, consider that the average person with 2-3 cards misses out on $441 annually in extra rewards by not using the optimal card for each purchase. Tools like Kudos can help you:
- Maximize rewards from existing cards
- Use the right card for every purchase
- Avoid wasting existing benefits (average of $624 annually)
The key question: Can you get more value from strategic multi-card optimization than from one expensive premium card?
Supercharge Your Credit Cards
Experience smarter spending with Kudos and unlock more from your credit cards. Earn $20.00 when you sign up for Kudos with "GET20" and make an eligible Kudos Boost purchase.
Editorial Disclosure: Opinions expressed here are those of Kudos alone, not those of any bank, credit card issuer, hotel, airline, or other entity. This content has not been reviewed, approved or otherwise endorsed by any of the entities included within the post.
