Similar to most premium credit cards on the market today, the Chase Sapphire Reserve currently offers an annual travel credit which helps offset the annual fee. Chase currently offers $300 in annual travel credits which are automatically applied as statement credits to offset eligible travel transactions. The credits begin the day you first open the card and don’t require any special attention. Simply use the card to pay for parking, airfare, hotels, taxis, busses, etc. and the eligible charges credited. This process continues until you’ve used the full $300. Until now that $300 credit balance reset on January 1 each year since the credit was based on a calendar year.
Chase Changes The Annual Credit To A Card Member Year
Chase recently updated the Chase Sapphire Reserve’s card holder agreement. The new wording states that the annual travel credit now resets based on a card member year. Effectively whenever you pay an annual fee, your travel credits also reset. This isn’t a huge change to the Chase Sapphire Reserve, but it’s one that will affect all cardholders.
Why This Change Matters
For the average person there is virtually no change and most may not even notice the change. The Sapphire Reserve’s travel credits are applied automatically so as long as you use your card frequently, chances are you’ll maximize this benefit. The change really affects those who churn credit cards. That is open and close cards to realize profits.
Churners may open a card late in a year to realize that years annual travel credits, but then keep the card open for a second calendar year to get another annual travel credit. Then, when the second annual fee comes due, they’ll close the card. Until this change for the Chase Sapphire Reserve, new card members could earn $600 in travel credits while only paying one $450 annual fee. Effectively a churner makes $150 for opening/closing this card, not mentioning a sign-up bonus.
Final Thoughts
For the average person this change is negligible. The only change is that card holders who rarely use the card need to be more mindful of when the travel credits reset. With the change it should be easy to know when the credits reset since it will coincide with the annual fee coming due. Many credit card churners may not like this change. I’m happy because it’s a subtle change which should help the long-term benefits offered from this card. I often worry that the benefits offered from the Chase Sapphire Reserve are too good to last. This change should help keep those strong benefits going for at least another year!?
