Introduction
The Chase Sapphire Preferred® Card has long been a favorite among travel enthusiasts and rewards credit card aficionados. With its robust rewards program, valuable travel perks, and relatively modest annual fee, this card offers an enticing blend of benefits for both frequent travelers and those just starting to explore the world of travel rewards. In this comprehensive review, we’ll delve into the card’s features, benefits, and potential drawbacks to help you determine if the Chase Sapphire Preferred® Card is the right choice for your financial toolkit.
Key Features of the Chase Sapphire Preferred® Card
Rewards Program
The Chase Sapphire Preferred® Card boasts an impressive rewards structure that caters to travelers and everyday spenders alike:
- 5X points on travel purchased through Chase Ultimate Rewards®
- 3X points on dining, including eligible delivery services and takeout
- 3X points on select streaming services
- 3X points on online grocery purchases (excluding Walmart, Target, and wholesale clubs)
- 2X points on all other travel purchases
- 1X point on all other purchases
These earning rates make it easy to rack up points quickly, especially for those who frequently dine out or travel.
Sign-Up Bonus
New cardholders can earn a substantial sign-up bonus: 60,000 bonus points after spending $4,000 on purchases in the first 3 months from account opening. This bonus is worth $750 when redeemed for travel through Chase Ultimate Rewards®, thanks to the card’s 25% redemption bonus on travel bookings.
Annual Fee
The Chase Sapphire Preferred® Card comes with a $95 annual fee. While not insignificant, this fee is relatively modest compared to many premium travel cards and can be easily offset by the card’s benefits for frequent users.
Travel Benefits
- No foreign transaction fees
- Trip cancellation/interruption insurance
- Auto rental collision damage waiver
- Baggage delay insurance
- Trip delay reimbursement
- Travel and emergency assistance services
Additional Perks
- $50 annual Ultimate Rewards® hotel credit
- 10% anniversary point bonus on total purchases made the previous year
- DoorDash DashPass subscription (activate by 12/31/24)
READ ALSO: How to Close a Chase Account: A Complete Guide
Maximizing Value with the Chase Sapphire Preferred® Card
Redeeming Points for Maximum Value
One of the Chase Sapphire Preferred® Card’s strongest features is its flexible redemption options. Cardholders can redeem points in several ways:
- Travel bookings through Chase Ultimate Rewards® (1.25 cents per point)
- Statement credits or cash back (1 cent per point)
- Gift cards (1 cent per point)
- Amazon.com purchases (0.8 cents per point)
- Transfers to travel partners (potentially 2+ cents per point)
To maximize value, focus on redeeming points for travel through Chase Ultimate Rewards® or by transferring to travel partners. The 25% bonus on travel bookings through Chase makes this an attractive option, while savvy travelers can often extract even more value by transferring points to airline and hotel partners.
Leveraging Transfer Partners
The Chase Sapphire Preferred® Card allows 1:1 point transfers to a variety of airline and hotel loyalty programs, including:
- United MileagePlus
- Southwest Rapid Rewards
- World of Hyatt
- Marriott Bonvoy
- British Airways Executive Club
By strategically transferring points to these partners, you can potentially unlock even greater value for your rewards, especially for premium cabin flights or luxury hotel stays.
Pairing with Other Chase Cards
To maximize your earnings, consider pairing the Chase Sapphire Preferred® Card with other Chase cards that earn Ultimate Rewards® points. For example:
- Chase Freedom Flex℠: Earn 5% cash back on rotating quarterly categories
- Chase Freedom Unlimited®: Earn 1.5% cash back on all purchases
By using these cards for their bonus categories and transferring the points to your Sapphire Preferred account, you can supercharge your rewards earning potential.
Pros and Cons of the Chase Sapphire Preferred® Card
Pros:
- Generous rewards structure for travel and dining
- Valuable sign-up bonus
- Flexible redemption options
- Strong travel protections
- No foreign transaction fees
- Reasonable annual fee compared to premium travel cards
Cons:
- $95 annual fee may not be justified for infrequent travelers
- Requires good to excellent credit for approval
- No luxury travel perks like airport lounge access
- Complex rewards structure may be overwhelming for some users
Who Should Consider the Chase Sapphire Preferred® Card?
The Chase Sapphire Preferred® Card is an excellent choice for:
- Frequent travelers who want to earn rewards on their spending
- Diners who often eat out or order in
- Those looking to dip their toes into the world of travel rewards without a hefty annual fee
- Individuals with good to excellent credit scores (typically 690 or higher)
- Those who prefer flexible redemption options for their rewards
If you fall into one or more of these categories, the Chase Sapphire Preferred® Card could be a valuable addition to your wallet.
Comparing the Chase Sapphire Preferred® Card to Competitors
To better understand the card’s value proposition, let’s compare it to some popular alternatives:
Capital One Venture Rewards Credit Card
- Annual fee: $95
- Rewards: 2X miles on all purchases, 5X miles on hotels and rental cars booked through Capital One Travel
- Sign-up bonus: 75,000 miles after spending $4,000 in the first 3 months
The Capital One Venture offers simpler earning structure but lacks the bonus categories of the Sapphire Preferred. It may be better for those who prefer a straightforward rewards program.
American Express® Gold Card
- Annual fee: $250
- Rewards: 4X points at restaurants and U.S. supermarkets (up to $25,000 per year), 3X points on flights booked directly with airlines or amextravel.com
- Welcome offer: 60,000 points after spending $4,000 in the first 6 months
The Amex Gold Card offers higher earning rates on dining and groceries but comes with a higher annual fee. It may be better for foodies who don’t travel as frequently.
Chase Sapphire Reserve®
- Annual fee: $550
- Rewards: 3X points on travel and dining, 10X points on hotels and car rentals booked through Chase Ultimate Rewards®
- Sign-up bonus: 60,000 points after spending $4,000 in the first 3 months
The Chase Sapphire Reserve offers premium travel perks like Priority Pass lounge access and a $300 annual travel credit but comes with a much higher annual fee. It’s better suited for luxury travelers who can take full advantage of its benefits.
Tips for Maximizing Your Chase Sapphire Preferred® Card
- Use the card for all travel and dining purchases to maximize point earnings.
- Take advantage of the 25% bonus when redeeming points for travel through Chase Ultimate Rewards®.
- Explore transfer partners to potentially extract even more value from your points.
- Pair with other Chase cards to earn more points on various spending categories.
- Utilize the card’s travel protections when booking trips.
- Take advantage of the $50 annual hotel credit and 10% anniversary point bonus.
- Activate and use the complimentary DoorDash DashPass subscription.
Conclusion
The Chase Sapphire Preferred® Card remains one of the most compelling travel rewards credit cards on the market. With its robust rewards program, valuable sign-up bonus, and array of travel benefits, it offers excellent value for frequent travelers and those looking to dabble in the world of travel rewards. While the $95 annual fee and complex rewards structure may not appeal to everyone, those who can maximize the card’s benefits will find it to be a valuable addition to their financial arsenal.
If you’re a traveler looking for a versatile rewards card with a reasonable annual fee, the Chase Sapphire Preferred® Card is certainly worth considering. Its combination of earning potential, redemption flexibility, and travel protections make it a standout choice in the crowded field of travel rewards cards.
Are you ready to apply or learn more? Visit Chase’s official website to explore the Chase Sapphire Preferred® Card and start your journey towards travel rewards mastery.
FAQs About the Chase Sapphire Preferred® Card
What credit score do I need to qualify for the Chase Sapphire Preferred® Card?
Generally, you’ll need a good to excellent credit score (690 or higher) to be approved for this card.
Can I upgrade from the Chase Sapphire Preferred® Card to the Chase Sapphire Reserve®?
Yes, you can request an upgrade to the Sapphire Reserve after holding the Preferred for at least one year. However, you won’t be eligible for the Reserve’s sign-up bonus if you upgrade.
Does the Chase Sapphire Preferred® Card offer travel insurance?
Yes, the card provides various travel protections, including trip cancellation/interruption insurance, auto rental collision damage waiver, and baggage delay insurance.
How do I redeem points earned with the Chase Sapphire Preferred® Card?
You can redeem points through the Chase Ultimate Rewards® portal for travel, cash back, gift cards, or by transferring to travel partners.
Is the Chase Sapphire Preferred® Card worth the annual fee?
For frequent travelers and diners who can take advantage of the card’s rewards and benefits, the $95 annual fee can be easily justified. However, it may not be worth it for infrequent travelers or those who don’t spend much in the bonus categories.
In another related article, How to Upgrade or Downgrade Your Chase Credit Card: A Comprehensive Guide
