Why I Have a Credit Card with an Annual Fee

When I first signed up for a credit card with an annual fee I was nervous. It actually took me about a month of researching and debating before I submitted the application. But, I weighed all the options and decided the Chase Sapphire Reserve would be helpful and worth the fee.

I already had the Chase Freedom Unlimited for many years. And I loved it. But, I was traveling more and knew the Chase Sapphire Reserve came with a large sign-up bonus. Although my first reaction to a card with a $450 annual fee was “no way!” it easily paid itself off. Plus, we ended up with even more benefits than I first expected.

(Note: Chase added some benefits to the card and it now has a $550 annual fee. And, yes, I still intend to keep it.)

Sign-Up Bonus

One of the main draws to the CSR was the sign-up bonus. You receive 50,000 points after spending $4,000 in 3 months. That is worth about $750 in travel through the Chase portal. Having those points could easily cut a dent in one of our trips.

We planned to make several large purchases during the sign-up bonus spending period. We were planning a trip at the time and booked our flights and Airbnbs on the card. Because of this, we did not spend anything more than we were planning to get that sign up bonus.

But because of the sign-up bonus and some other purchases, we have enough points to cover our next flight.

$300 Travel Credit

The CSR also comes with a $300 travel credit. The first $300 you spend on travel is reimbursed to your account. This travel category even includes things like Uber. Every travel purchase we made, up to that $300 was put back on the card.

This $300 credit is an annual credit-so you get it each year. This effectively reduces the $550 annual fee to $250 because you get $300 back.

Global Entry or TSA Precheck

The card also comes with a credit for either Global Entry or TSA Precheck. If you pay for either of these with the CSR, you will receive a credit on your account to cover it. This can save you a ton of hassle while traveling.

Plus, TSA Precheck is $80, while Global Entry is $100. So, you end up saving a decent amount of money.

Priority Pass

Priority Pass was one of the hidden benefits we got with this card. I honestly didn’t even investigate it until we were sitting in an airport. In fact, we had already bought lunch before we realized we could have had a free lunch in one of the lounges with Priority Pass.

This membership allows you to access airport lounges and other features for free. Plus, you get up to two guests. It actually saved us money and allowed our trips to be a lot more comfortable.

Points

With the Chase Sapphire Reserve, you earn 3% on travel and dining at restaurants. This 3% begins after you receive the $300 credit towards travel. You earn 1% on everything else. Points can add up very fast.

When you redeem your points through the Chase Portal, your points are worth 50% more. That means with $500 worth of points, you can actually purchase that plane ticket that costs $750. These points can also be transferred to airline and hotel partners at a 1:1 points value.

Other Benefits

The Chase Sapphire Reserve has also gotten some upgrades. This includes a DoorDash subscription and Lyft membership.

Some very helpful features make it great for traveling. There are no foreign transaction fees, which saves us a ton of money while traveling. It also has contactless payment available. This made payments in Europe (where NFC is much more common) very easy.

It also comes with trip cancellation/interruption insurance as well as auto rental collision damage waivers. (Be sure to read the fine print to make sure these protections meet your individual needs.)