Taking Chase Sapphire Reserve Into Account

In a previous post, I came out in favor of the American Express Business Gold and Platinum Schwab (Personal) over the Chase Ink Business card for my particular spending habits. 

I spend about $35,000 a year on shipping.  The business gold earns 4x and the Schwab makes that worth 5% cash back.  Chase Ink earns 3x on shipping which turns into 3.75% towards travel but it's annual fee is far lower.

Well, it turns out that I neglected to take the Chase Sapphire Reserve into account. 🤦

The Chase Sapphire Reserve has a very high annual fee of $450 but it means the 3x earned from INK turns into 4.5% towards travel and it comes with a very generous $300 airline reimbursement which many people consider to be almost as good as cash since it is pretty easy to activate.

Summary of Last Post Calculation

Here is how the original math shook out

American Express combo:

Annual fees - $295 and $550 = -$845
Travel reimbursement - ~$160
$35,000 of shipping expenses = 140,000 Membership Rewards Points = $1,750
Tax deduction at marginal rate of 30% of annual fee = $253.50


That's $1318.50 of value (3.767% on $35k of spending).

It's another $70 if you have $250k with Schwab ($100 off annual fee but lose the 30% tax deduction so only gain $70) and another $70 if you have $1 million+ with Schwab.



Chase INK

Annual fee = -$95
Travel reimbursement = $0
$35,000 of shipping expenses = 105,000 Ultimate Rewards points = $1,312.50 towards travel.
Tax deduction at marginal rate of 30% of annual fee = $28.50

That's $1246 of value towards travel (3.56%)

I pointed out that as I continue to spend more money on shipping, the benefit of the amex combination would increase and I also get the extra benefits of platinum like lounge access and credit to Saks Fifth Avenue, Uber Credits and Status at certain hotels and rents a cars so it made sense to go with American Express.

$1318.50 cash vs. $1246 for travel and Platinum has more benefits.  It was easy to choose American Express over Chase


The problem is that I completely ignored the Chase Sapphire Reserve in this calculation. 

Adding in Chase Sapphire Reserve 

Here is the Calculation of the Chase Ink and Sapphire Reserve combo



Annual fee = -$545
Travel Reimbursement = $300, let's give it full value for simplicity sake since most people can get full value out of it
$35,000 of shipping expenses = $105,000 Ultimate Rewards = $1,575 towards travel.
Tax deduction at marginal rate of 30% of annual fee = $163.50

That's $1493.50 of value towards travel  (4.267%) vs. the $1318.50 of cash

Conclusion

The Chase combination actually provides more value for me.  I had already applies for the Schwab Platinum which I don't regret since it will unlock all my Membership Rewards but going forward I am considering going the Chase route instead of American Express.  My only question is whether Chase will approve me for multiple cards. 

I want 3 Chase cards in total.  The Sapphire Reserve, Ink Business Preferred and Ink Business Cash (5x office supplies with no annual fee - limit of $25k of spending for 5x).  We will see what I can get!

Chase Refer a Friend - Freedom and Sapphire Preferred - 5,000 Points Per Referral

Chase is offering 5,000 Ultimate Rewards points for every referral you make to the Chase Freedom or Sapphire Preferred.  Your referral will get the same offer as is available publicly.

Here is the link - you may be able to refer to one, both or neither.

- Referral must be done by May 31, 2015
- Max of 10 referrals for total of 50,000 bonus points

This is a great way to get valuable extra Chase points.

If you are applying for either of these cards and don't have someone you know who can refer you, please consider emailing me so that I can refer you as a way of saying thank you for the blog.


HT - Doctor of Credit

Credit Card Sign Up Increases and Other News

Disclaimer: I receive a referral commission for the following link(s) and I greatly appreciate supporting the site: Credit Sesame

Disclaimer - The Discover offers are no longer valid.

• Discover It - Normally no sign up bonus, now it is $150 for spending $750 in the first 3 months
• Discover now offers a free monthly FICO score on your statement.  Alternatively, you can use Credit Sesame.  
• Advantage to Credit Sesame is that you can get free credit monitoring that will tell you when there is a new credit account in your name or if you are ever late on a payment, which has saved me in the past.
• Discover it is one of my go to credit cards for online purchases.  They often have the best cashback offer from Shop Discover and the last two years they have given 5% back for purchases made online in Quarter 4.  
• They have released the 5% categories for next year and Quarter 4 is "Holiday Shopping,"  which may or may not include online purchases.
• No annual fee

• Chase Freedom - Increased sign up bonus to $200 from $100 for spending $500 in the first 3 months.
• No annual Fee

• Chase Sapphire Preferred - Increased sign up bonus from 40,000 to 50,000 points (can be redeemed for $500 or transferred to many airline and hotel partners for even greater value) for spending $3,000 in the first 3 months.  In addition, you will get another $5,000 points for adding an authorized user
• Annual fee increases from $95 to $125, which is waived the first year.

If you have applied for any of these cards within the last 90 days with a smaller bonus, send a secure message asking to be matched to the new offer.  It's always worth a shot.