Buzz
Have you ever thought that the generous rewards and amazing perks of the Chase Sapphire Reserve credit card seemed too good to last? Well, it looks like the honeymoon phase is ending: The card’s annual fee is rising from $450 to $550 this year.
Rumors about the fee hike were confirmed by The Points Guy, who reported that the increase will take effect on January 12. If you’re already a cardholder and your renewal is before April 1, 2020, you’ll be able to renew at the old $450 rate. After April 1, everyone will face the $550 fee.
This announcement comes shortly after Chase and DoorDash revealed a new partnership, offering some cardholders, including Reserve members, complimentary DashPass memberships.
In addition, TPG reveals that Reserve cardholders will enjoy a complimentary year of Lyft Pink; you’ll also earn 10x points on Lyft rides when using your Reserve card for payment.
Cardholders will still receive a $300 travel credit, airport lounge access, and reimbursement for TSA Precheck and Global Entry application fees. Right now, the $300 travel credit reduces the effective annual fee to $150; following the price increase, you'll pay $250 for the card's benefits.
This increase raises the Reserve card’s price to match the American Express Platinum card, which, for its $550 fee, offers benefits like up to $200 per year in Uber Cash, a $200 airline fee credit, lounge access, and reimbursement for Precheck or Global Entry.
If you're hesitant about paying so much for the Reserve card, you could consider downgrading to the Chase Sapphire Preferred card. While it has fewer benefits, it still offers 2x points on travel and dining (compared to the Reserve's 3x points). When redeeming points for travel through Chase Ultimate Rewards, they’ll have an added value of 25% (instead of the Reserve’s 50%). The Preferred card’s annual fee is $95.
We contacted Chase for more information and will update this post as soon as we hear back.
