In the market for a new credit card with not super high annual fees and a lucrative welcome bonus? Capital One Savor and Chase Sapphire Preferred are two of the most popular cards today that fit the description so I went ahead and created this blog post for those who are having hard time deciding.
Back Story: A friend of a friend recently reached out to ask this very question and this is what I wrote back to them:
What you said gives me an idea about your consumption habits and expectations from your rewards. I think Savor is a phenomenal card if you value cash back over travel rewards. The fantastic part of CSP is though, you get 3x points for dining and transportation, and when redeemed via Chase’s travel portal (powered by Expedia) they are worth 1.25x more. Therefore your welcome bonus of 60k points would be worth $750 in travel. So for travel your cashback rate is 3.75% effectively, instead of 3%. And don’t forget about the additional bonus points that will come from the transportation category. CSR is best when coupled with Chase Freedom which has 5% cashback categories every quarter, and when you have both cards, you can transfer your points from Freedom to CSR and those would be 1.25x more valuable. So effectively, 6.25% cashback on those rotating categories.
Savor has a $500 welcome bonus and CSP has $600 (or $750 in travel) and they both waive the annual fee of $95 the first year, so based on that CSP is a better deal. Also pay attention to the min spend requirements between the two cards, which could be different.
I am actually using the Chase Sapphire Reserve, which is Chase’s top tier card, whereas CSR is more mid-tier. CSR has a $450 annual fee but you get $300 back on travel expenses per year (Anything from Uber to plane tickets) so it’s actually $150. And your points are multiplied by 1.5x, instead of 1.25x, when redeemed for travel. So when you transfer from Freedom, they come in at 7.50%. I’d def give this one some thought as well. And the best part is, Chase has a ton of travel partners so you can transfer your points to airlines like United (check the list of partners to get a better idea). You can also combine points, or transfer to/from friends and family to pool them.
Do you have either of these cards? Which one do you prefer? Leave a comment or connect with me on Social Media to let me know your thoughts 🙂