Skip to content

How your points strategy changes when you swap your Chase Sapphire Reserve for the Chase Sapphire Preferred

Dec. 28, 2021
9 min read
This post contains references to products from one or more of our advertisers. We may receive compensation when you click on links to those products. Terms apply to the offers listed on this page. For an explanation of our Advertising Policy, visit this page.

Update: Some offers mentioned below are no longer available. View the current offers here.

Until recently, the Chase Sapphire Reserve was one of the top travel rewards cards. My husband signed up soon after the card launched back in 2016, and we have frequently used his card ever since due to its bonus categories and lack of foreign transaction fees. In fact, since we travel full time as digital nomads and most of our purchases are for dining or travel, it became our go-to card while traveling internationally.

But with the Sapphire refresh earlier this year, the Chase Sapphire Preferred Card became more appealing to many Chase Sapphire Reserve cardholders. After all, with the new perks on the Chase Sapphire Preferred, it became increasingly difficult to justify the Chase Sapphire Reserve's $550 annual fee. Plus, the elevated sign-up bonus on the Chase Sapphire Preferred earlier this year was highly compelling.

Some cardholders, including my husband, downgraded their Chase Sapphire Reserve card to a no-annual-fee card and then applied for the Chase Sapphire Preferred earlier this year. Now, we each have our own Chase Sapphire Preferred and Ink Business Preferred Credit Card accounts, but neither of us has a Chase Sapphire Reserve. So, today I'll discuss several ways our Chase Ultimate Rewards points strategy has changed now that we don't have a Chase Sapphire Reserve.

Sign up for TPG's daily newsletter for more news delivered each morning to your inbox.

Pay Yourself Back and Ultimate Rewards travel portal redemptions become less appealing

(Photo by MStudioImages/Getty Images)

Chase loyalists know that you can maximize Ultimate Rewards redemptions by transferring points to high-value transfer partners. But if you have a Chase Sapphire Reserve, you can get 1.5 cents per point of value without transferring points when you:

However, TPG's valuations peg the value of Chase Ultimate Rewards points at 2 cents per point, so even when we had a Chase Sapphire Reserve account, I never loved the idea of redeeming Chase Ultimate Reward points at a rate of 1.5 cents per point.

But I could at least see the value occasionally. For example, we could redeem points for a flight through the Ultimate Rewards travel portal and get elite earnings on the flight. Meanwhile, if we'd booked the same ticket by transferring points to a Chase Ultimate Rewards transfer partner, we wouldn't earn toward elite status with the airline.

But now that we only have the Chase Sapphire Preferred and Ink Business Preferred Credit Card — both of which give 1.25 cents per point of value through the Ultimate Rewards travel portal and Pay Yourself Back — I can't stomach redeeming Chase Ultimate Reward points at a rate of 1.25 cents per point. After all, I know we can get more value through transfer partners even if we don't maximize our redemptions.

Sign up for our daily newsletter

Related: When is it better to use the Chase portal instead of airline transfer partners?

Transferring to travel partners for less-valuable redemptions looks better

Hyatt Place Melbourne / Palm Bay in Florida. (Photo by Katie Genter/The Points Guy)

Some Ultimate Rewards transfer partners are more valuable than others. Our guide to redeeming Chase Ultimate Rewards points for maximum value even has sections for top transfer partners and less-desirable transfer partners. And, as evidenced by our post on the best Chase Ultimate Rewards sweet spots, some redemptions provide more value than others even in the more-desirable programs.

My husband and I enjoy maximizing our rewards, so we've rarely transferred points when the redemption value wasn't well over TPG's valuation. Within the Chase Ultimate Rewards program, we usually gravitate toward high-value transfer partners such as Virgin Atlantic Flying Club and British Airways Avios.

But now we're starting to consider transferring Ultimate Rewards points for slightly less valuable redemptions. I suspect a good bit of this shift is due to the fixed-rate redemption value of Ultimate Rewards points changing from 1.5 cents per point to 1.25 cents per point now that we don't have a Chase Sapphire Reserve. After all, even though I have no desire to redeem Ultimate Rewards points for 1.25 cents per point, price anchoring certainly plays a role in my subconscious valuations.

But, to be fair, part of this shift is likely also due to our ever-growing balance of Ultimate Rewards points and changing priorities. After all, although transferable points are more devaluation-proof than airline or hotel rewards, devaluations are likely coming. And there are a lot of aspirational products and experiences we want to try once borders reopen, schedule changes and cancellations become less common and travel returns to normal.

Plus, I earned World of Hyatt Globalist for the first time in 2021 and plan to requalify in 2022. So, I'll likely need to transfer some Ultimate Rewards points into the World of Hyatt program for some 2022 award stays. And although I'll avoid redeeming points if the redemption rate is too low, I likely won't aim for significantly higher than 2 cents per point when deciding whether to book a paid rate or transfer Chase Ultimate Rewards points.

Related: TPG releases brand-new points calculator to make award bookings easier

Utilizing different cards for purchases

(Photo by Isabelle Raphael/The Points Guy)

I mentioned earlier in this article that the Chase Sapphire Reserve was previously our primary card when traveling internationally. But neither the Chase Sapphire Preferred Card nor the Ink Business Preferred Credit Card has automatically taken its place in our wallets. Instead, we're currently spending as follows:

The information for the Citi Prestige has been collected independently by The Points Guy. The card details on this page have not been reviewed or provided by the card issuer.

As you can see, downgrading the Chase Sapphire Reserve encouraged us to reconsider our go-to cards. In doing so, we've started actively using more cards and earning more rewards on purchases that we'd previously have put on the Chase Sapphire Reserve for simplicity. For example, while we previously put most of our dining on the Chase Sapphire Reserve, now we earn more rewards by using the American Express Gold Card or the Citi Prestige Card.

Related: How to assess and build your credit card portfolio

Bottom line

Two years ago, I expected we'd keep my husband's Chase Sapphire Reserve for the long term. But between an increased annual fee on the Chase Sapphire Reserve, new perks on the Chase Sapphire Preferred Card and a compelling sign-up bonus, it became easy to drop the Chase Sapphire Reserve and pick up the Chase Sapphire Preferred Card earlier this year.

Especially as travel and life continue to change amid the ongoing coronavirus pandemic, it's worth considering whether your card lineup should also change. But realize that how you use and value your rewards may also change as you optimize your credit card portfolio. And ensure that you have a plan to transfer, redeem or otherwise protect your transferable rewards before closing or downgrading a card.

Featured image by Getty Images
Editorial disclaimer: Opinions expressed here are the author’s alone, not those of any bank, credit card issuer, airline or hotel chain, and have not been reviewed, approved or otherwise endorsed by any of these entities.

Top offers from our partners

How we chose these cards

Our points-obsessed staff uses a plethora of credit cards on a daily basis. If anyone on our team wouldn’t recommend it to a friend or a family member, we wouldn’t recommend it on The Points Guy either. Our opinions are our own, and have not been reviewed, approved, or endorsed by our advertising partners.
See all best card offers

TPG featured card

Best for earning alternative rewards for travel purchases
TPG Editor‘s Rating
Card Rating is based on the opinion of TPG‘s editors and is not influenced by the card issuer.
3 / 5
Go to review
Apply for Credit One Bank Wander® Card
at Credit One Bank's secure site

Rewards

1 - 10X points
10XEarn 10x points on eligible hotels and car rentals booked through the Credit One Bank travel partner site
5XEarn 5x points on eligible travel, dining, and gas
1XEarn 1x points on all other purchases

Intro offer

Earn 10,000 Bonus Points
Earn 10,000 bonus points after spending $1,000 on eligible purchases in the first 90 days and redeem for a $100 statement credit, gift cards, or travel

Annual Fee

$95

Recommended Credit

Fair/Good
Credit ranges are a variation of FICO© Score 8, one of many types of credit scores lenders may use when considering your credit card application.

Why We Chose It

The revamped Wander Card from Credit One Bank earns cardmembers up to 10 points per dollar spent on eligible travel purchases. With no foreign transaction fees, the card is also great for international travel. However, points earned from this card can only be used at a fixed value, so it may not be the best option for those striving to get maximum value from their rewards.

Pros

  • This card has no foreign transaction fees and earns up to 10 points per dollar on travel purchases through the Credit One Bank travel partner site.

Cons

  • While cardholders can earn a significant amount of points on travel purchases, there isn't any way to redeem points from the Wander Card for maximum value (beyond 1 cent per point).
  • Earn 10,000 bonus points after spending $1,000 on eligible purchases in the first 90 days and redeem for a $100 statement credit, gift cards, or travel
  • Earn 10x points on eligible hotels and car rentals booked through the Credit One Bank travel site
  • Earn 5x points on eligible travel, dining, and gas
  • Earn 1x points on all other purchases
  • Redeem your reward points for statement credits, gift cards, merchandise, flights, hotels, and more
  • With $0 Fraud Liability, you won’t be responsible for unauthorized charges
  • Free Online Credit Score and Credit Report summary, terms apply
  • If you are a Covered Borrower under the Military Lending Act, you may get a different offer
  • See Rates & Fees
Apply for Credit One Bank Wander® Card
at Credit One Bank's secure site
Terms & restrictions apply. See rates & fees
Best for earning alternative rewards for travel purchases
TPG Editor‘s Rating
Card Rating is based on the opinion of TPG‘s editors and is not influenced by the card issuer.
3 / 5
Go to review

Rewards Rate

10XEarn 10x points on eligible hotels and car rentals booked through the Credit One Bank travel partner site
5XEarn 5x points on eligible travel, dining, and gas
1XEarn 1x points on all other purchases
  • Intro Offer
    Earn 10,000 bonus points after spending $1,000 on eligible purchases in the first 90 days and redeem for a $100 statement credit, gift cards, or travel

    Earn 10,000 Bonus Points
  • Annual Fee

    $95
  • Recommended Credit
    Credit ranges are a variation of FICO© Score 8, one of many types of credit scores lenders may use when considering your credit card application.

    Fair/Good

Why We Chose It

The revamped Wander Card from Credit One Bank earns cardmembers up to 10 points per dollar spent on eligible travel purchases. With no foreign transaction fees, the card is also great for international travel. However, points earned from this card can only be used at a fixed value, so it may not be the best option for those striving to get maximum value from their rewards.

Pros

  • This card has no foreign transaction fees and earns up to 10 points per dollar on travel purchases through the Credit One Bank travel partner site.

Cons

  • While cardholders can earn a significant amount of points on travel purchases, there isn't any way to redeem points from the Wander Card for maximum value (beyond 1 cent per point).
  • Earn 10,000 bonus points after spending $1,000 on eligible purchases in the first 90 days and redeem for a $100 statement credit, gift cards, or travel
  • Earn 10x points on eligible hotels and car rentals booked through the Credit One Bank travel site
  • Earn 5x points on eligible travel, dining, and gas
  • Earn 1x points on all other purchases
  • Redeem your reward points for statement credits, gift cards, merchandise, flights, hotels, and more
  • With $0 Fraud Liability, you won’t be responsible for unauthorized charges
  • Free Online Credit Score and Credit Report summary, terms apply
  • If you are a Covered Borrower under the Military Lending Act, you may get a different offer
  • See Rates & Fees