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Chase Sapphire Reserve for Business review: A $795 card with travel and business statement credits

The article from CNBC Select titled "Chase Sapphire Reserve for Business Review" provides an in-depth analysis of the Chase Sapphire Reserve card, focusing on its potential benefits and drawbacks for business owners. Published on the CNBC website, the review aims to guide entrepreneurs and small business owners in determining whether this premium travel rewards credit card aligns with their financial and business needs. Below is an extensive summary of the content, covering the card's features, benefits, fees, rewards structure, and overall value proposition, while also addressing who might benefit most from this card and who might want to consider alternatives.

The Chase Sapphire Reserve is primarily marketed as a personal credit card, but the review explores its applicability for business purposes, especially for owners who frequently travel or incur significant business expenses. The card is part of Chase's premium lineup, known for its robust travel perks and rewards program, which can be particularly advantageous for business owners with high spending in travel and dining categories. However, the article notes that this card is not explicitly designed for business use, unlike dedicated business credit cards such as the Chase Ink Business Preferred or American Express Business Platinum. Instead, it serves as a hybrid option for those who may blend personal and business expenses or prefer a single card for both purposes.

One of the standout features of the Chase Sapphire Reserve is its generous rewards structure. Cardholders earn 3X points on travel and dining purchases worldwide, which is a significant draw for business owners who frequently entertain clients or travel for work. Additionally, the card offers 1X points on all other purchases, ensuring that even non-travel-related business expenses accrue rewards. The points earned through the Chase Ultimate Rewards program are highly flexible, allowing redemption for travel through the Chase Travel portal at a boosted value of 1.5 cents per point. This means a business owner with 100,000 points could redeem them for $1,500 in travel, a substantial benefit for those looking to maximize value. Points can also be transferred to a variety of airline and hotel partners at a 1:1 ratio, providing even more flexibility for frequent travelers who prefer specific loyalty programs.

Beyond the rewards, the Chase Sapphire Reserve offers a suite of travel-related benefits that can be particularly useful for business owners on the go. These include a $300 annual travel credit, which effectively offsets a portion of the card’s $550 annual fee by reimbursing travel purchases such as airfare, hotels, and car rentals. Cardholders also receive access to over 1,300 airport lounges worldwide through Priority Pass Select, a perk that can enhance productivity and comfort during business trips. Other travel protections include trip cancellation/interruption insurance, primary car rental insurance, and no foreign transaction fees, making it an ideal companion for international business travel. These benefits collectively position the card as a strong contender for entrepreneurs who prioritize travel perks and protections.

However, the review also highlights several drawbacks that business owners should consider before applying for the Chase Sapphire Reserve. The most notable is the steep $550 annual fee, which may be difficult to justify for those who do not spend heavily on travel or dining. While the $300 travel credit reduces the effective cost to $250, businesses with minimal travel expenses might not fully utilize the card’s benefits to offset this fee. Additionally, since the card is not a dedicated business credit card, it lacks some features that are standard in business-specific cards, such as the ability to add employee cards at no extra cost or detailed expense tracking tools. For businesses with multiple employees or complex accounting needs, a true business credit card might be a better fit.

The article also discusses the card’s welcome bonus, which at the time of the review was 60,000 bonus points after spending $4,000 within the first three months of account opening. Valued at up to $900 in travel through the Chase Travel portal, this bonus can be a significant incentive for new cardholders, especially those who can meet the spending requirement through business expenses. However, the review advises potential applicants to ensure they can pay off the balance in full to avoid high interest charges, as the card’s variable APR is relatively high, ranging from 16.99% to 23.99% depending on creditworthiness.

In terms of who should consider the Chase Sapphire Reserve for business use, the review identifies frequent travelers and business owners with significant dining expenses as the ideal candidates. For example, consultants, sales representatives, or entrepreneurs who regularly meet clients over meals or attend industry conferences could maximize the card’s 3X points categories and travel benefits. The lounge access and travel protections further sweeten the deal for those constantly on the move. Conversely, the card may not be suitable for businesses with low travel spending or those seeking a no-annual-fee option. For such cases, the review suggests alternatives like the Chase Ink Business Cash or Capital One Spark Cash Plus, which offer rewards on everyday business purchases without the hefty annual fee.

The application process for the Chase Sapphire Reserve is also covered in the article. It notes that the card is subject to Chase’s 5/24 rule, meaning applicants who have opened five or more credit cards in the past 24 months across all issuers may be denied. This rule could pose a challenge for business owners who frequently apply for new credit lines. Additionally, the card requires excellent credit, typically a FICO score of 740 or higher, which may exclude some applicants with less established credit histories.

In conclusion, the CNBC Select review of the Chase Sapphire Reserve for business use presents a balanced perspective on the card’s value. It praises the card’s lucrative rewards, premium travel perks, and flexible redemption options, which can be highly beneficial for business owners with substantial travel and dining expenses. However, it also cautions against the high annual fee and lack of business-specific features, recommending that potential cardholders carefully evaluate their spending habits and needs before committing. The article ultimately serves as a comprehensive guide, helping business owners weigh the pros and cons of using a personal premium card like the Chase Sapphire Reserve for their professional expenses. For those who can leverage its benefits, the card offers significant value, but for others, a dedicated business credit card might provide a more tailored solution. This detailed analysis ensures that readers are well-informed about whether the Chase Sapphire Reserve aligns with their business financial strategy, making it a valuable resource for entrepreneurs navigating the complex world of credit card rewards and benefits.

Read the Full CNBC Article at:
[ https://www.cnbc.com/select/chase-sapphire-reserve-for-business-review/ ]