The Chase Sapphire Preferred card has long been sold as the traveler's best friend: a $95 annual fee that pays for itself if you use the perks.
But in 2025, that math is looking shakier for millions of cardholders who are already stretched thin by rent, groceries, and credit card interest.
A $95 annual fee hits your statement once a year, usually in the same month your car insurance or a holiday bill lands.
If you don't earn the full $50 hotel credit or forget to use the DoorDash credits, that fee becomes a straight loss.
And with grocery prices up roughly 25% since 2020, according to federal data, a $95 charge stings more than it did when the card launched.
Studies on credit card behavior show that people spend more when they're chasing points.
So a card marketed as "free money" can quietly push your monthly balance higher, and at today's average APR near 21%, carrying even $500 extra for a year costs about $105 in interest.
Meanwhile, the Federal Reserve's rate hikes since 2022 made card debt more expensive across the board.
If you're paying interest, no sign-up bonus or travel credit can outrun it.
The Chase Sapphire Reserve, with its $550 fee, is an even harder sell for anyone who isn't traveling heavily.
So what should you do before the next fee posts?
First, check your card's anniversary date and the perks you actually used last year.
If you didn't book a hotel through Chase or use the dining credits, downgrade to a no-fee card like the Chase Freedom Unlimited.
You keep your credit history and stop the bleeding.
Second, if you do travel enough to justify it, set a calendar reminder to use every credit before the year ends.
Unused perks are pure profit for the bank.
Third, compare the fee against a simple cash-back card.
A 2% card on $10,000 of annual spending returns $200 with no fee and no mental gymnastics.
The real test isn't whether the card is "good." It's whether it's good for your budget right now.
With rent rising and wages lagging, a $95 charge you didn't plan for can mean a smaller grocery run or a missed bill.
Our take: annual fees are only worth it when you'd spend that money anyway.
If you're juggling balances or watching every grocery receipt, a no-fee card almost always wins.
Final Thoughts
The points game rewards people who don't need the rewards.