Consumers shopping for the best credit card often are attracted to those with no annual fees. However, some cards with fees actually are very worthwhile for certain consumers. An example is the new Chase sapphire reserve card, which costs $450 per year for the cardholder. The potential benefits are substantial.
This financial product can be considered a premium rewards card. It’s best for people who spend a lot of money, can put those purchases on a credit card, and can pay off the balance every month. They receive rewards points for purchases, and with this card, they receive 100,000 points for spending $4,000 within three months after initiating the account. That’s a hefty and unusual premium for savvy spenders. In addition, by making travel reservations through a Chase organization, cardholders can redeem their points for 1-1/2 cents each. This card can be advantageous for individuals with plenty of cash to spend.
It’s crucial to understand how this particular credit card deal works to make it profitable for the consumer. Without spending $4,000 with the card within three months, that big point bonus is lost. The bonus is a primary reason for signing up for this card. In addition, if the cardholder doesn’t pay off the balance every month, normal interest charges tend to wipe out benefits from rewards.
People unaccustomed to spending this amount of money on a credit card may feel a little baffled about which purchases qualify. To get the big bonus, they’ll need to make a big purchase all at once or spend about $1,340 each month at first. An example of a big purchase could be a used vehicle at a dealership. It’s safe to say that hardly anyone thinks of charging a car on a credit card. Nevertheless, if someone can pay the balance with the next statement, this move makes sense. Other individuals might spend the monthly $1,340 on plane tickets, dinners at high-end restaurants, theater and concert tickets, and other pricey purchases. If they wouldn’t normally do this, getting the card may not be a reasonable venture for them. For individuals who typically do spend at this level, the card may be a wise financial product to have.