Chase Southwest Premier or Sapphire Preferred?

Discussion in 'Other Credit Card Programs' started by goheerow, Jul 7, 2011.  |  Print Topic

  1. goheerow

    goheerow Silver Member

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    If you had to choose one, which would you go for considering facts below?
    - Southwest Premier Visa Sig with 50k points ($99 AF)
    - Sapphire Preferred VIsa Sig with 50k points ($85 AF waived for first year)

    * Already a Sapphire regular cardholder with about 20k points.
    * Fly Southwest about twice a year, mostly on short hauls like LAX-LAS and LAX-OAK.
    (long haul flights mainly CO/UA used)
    * This would be your first annual fee card and plan on keeping it for longer than a year.
    * Excellent credit with about 5 credit cards. Main ones - Costco Amex, Hilton Amex, Chase Sapphire, Chase Freedom.
     
  2. kenbo
    Original Member

    kenbo Silver Member

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    The Sapphire Preferred annual fee is now $95.

    If you only fly Southwest twice a year, and on such short trips, I'm not sure you'd be getting the best value out of having that card. You can always find affordable deals on the trips you specified. With Sapphire Preferred you can transfer to CO, if I'm not mistaken.

    Sign up bonuses aside, I'd go with the SP due to the flexibility.
     
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  3. RestlessLocationSyndrome
    Original Member

    RestlessLocationSyndrome Silver Member

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    Not sure what you decided on this but hopefully you got the Southwest sign up bonus while you still had the chance. Clearly, we all have credit cards that we use for different purposes but it's important to me that the annual fee is worth it.

    Considering that I get SW points equivalent to the annual fee and that I fly SW at least a few times a year for short trips from LA, it's well worth it to keep the SW card in my stable... even if it's just to use to pay for my SW flights or taxes on SW rewards.
     
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  4. goheerow

    goheerow Silver Member

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    I ended up not getting either. I'm always on the fence when it comes to annual fee cards. Also, I don't fly on SW as often anymore. I fly UA/CO about twice a year so I may get the Explorer card if I need to get an annual fee card, but right now I'm focusing on building up Hhonors points with the fee free cards so I can take the family to Hawaii in a few years!
     
  5. jaw_24
    Original Member

    jaw_24 Silver Member

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    Sorry for bringing this thread back from the dead, but just doing some back-of-the-envelope calculations--

    Both offer a generous point/$ earning on general travel (RR partners only for SW, all travel for Sapphire).
    Southwest offers 2 points/$, and each point = $0.0167 = $0.033 per dollar spend.
    Sapphire offers 2 points/$, x 7% annual bonus, x 25% if redeemed via UR travel = $0.02675 per dollar spend.
    OR
    2 points/$ x 7% annual bonus = 2.14 miles/$ spend if moved to FF program

    You would need value the UR points at above 1.55 cpm redeemed at FF in order for these two to equal out. Now, the potential bonus partners is lower with Southwest, and they have further reduced this by removing IHG and HHonors. So YMMV in terms of your favorite travel.

    Am I missing anything on the Sapphire calculation?
     
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  6. Scottrick
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    Scottrick Gold Member

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    Southwest is good for converting the miles to gift cards if their bonus promotion is still going on. Also, if you actually fly on Southwest, you can get the personal and business cards and try to swing that into a companion pass at the same time.

    Personally, I think the UR card is better for where I'm at right now. I'm trying to focus on some long-term cards to get my average account age up, and the UR card is one for which I'd grudgingly pay the fee. Also, I value my UA miles at 2 cpm.
     
  7. RestlessLocationSyndrome
    Original Member

    RestlessLocationSyndrome Silver Member

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    My personal rule is to never pay for a credit card. The SW card abides by this rule by giving me my annual fees back in points which I would use for SW flights that I would take anyway.

    I like the Sapphire Preferred but I can't see myself paying $95/yr to have the privilege of using the card. If you value these miles at 2 cents/$ spent, you'd have to spend $9,500/yr just to break even. Considering that I already have the CostCo card for free which gives me 2% cash back on many travel of the same travel items, it doesn't make a whole lot of sense to get this card.

    Now one thing that can make me apply would be the sign up bonus. If this is what you're shooting for, it obviously makes sense to get the SW Plus instead of the premier because it's only $69 and still gives 50k pts. Also, the Sapphire Preferred makes sense to get the 50k pts just to transfer to UA/CO... not a bad way to double or triple up on the sign up offer on the regular UA/CO cards.
     
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  8. goheerow

    goheerow Silver Member

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    Glad you guys brought this post back from the dead. I was actually starting to think about getting the Sapphire again. Actually, I would have to apply for the Ink Bold card (steep spend requirement, though) in order to get the 50k bonus since I already have the Sapphire regular. Chase tells me I won't qualify for the 50k bonus if I upgrade to Preferred. I have about 35k UR points (from Freedom and Sapphire regular cards) sitting around getting stale just waiting to be transferred to UA/CO, but don't have the right card to do it!!
     

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