If you’re a player in the travel rewards world, the new 125,000-point bonus offered by the Chase Sapphire Reserve card has no doubt caught your attention. Even for a premium travel card, this highest-ever bonus on the Sapphire Reserve card is nothing short of astounding.
But two major roadblocks stand between the credit card and casual users. The first is the requirement to spend $6,000 in the first three months in order to qualify for the hefty bonus. The second is the $795 annual fee. While many will scoff at the idea of paying nearly $800 just for the “privilege” of using a credit card, others will derive real value in the card, more than enough to offset the sizable fee.
Here’s how to determine whether the Chase Sapphire Reserve card is worth it for you.
How Much Is the Sign-Up Bonus Really Worth?
While receiving 125,000 Chase Ultimate Rewards points sounds like a lot — and it is — how much are these points really worth?
At a bare minimum, 125,000 Ultimate Rewards points are worth $1,250 in cash back on redemptions made directly through Chase. That’s a lot of value for a sign-up bonus, even though you have to meet the hefty spending requirement of $6,000 in three months. If you simply liquidate your points for cash through Chase, you’ll pay off that $795 fee and still have $455 in value available.