Chase Sapphire Preferred® Card Review: A Traveler’s Best Friend
If you love to travel and want to get the most value out of your spending, the Chase Sapphire Preferred® Card might just be the card for you. With its generous rewards program and a variety of travel perks, this card stands out as a versatile and valuable choice for travelers.
Key Features
Annual Fee
The Chase Sapphire Preferred® Card comes with an annual fee of $95. While some might be hesitant about paying an annual fee, the rewards and perks offered by this card can easily outweigh the cost for frequent travelers.
Rewards Rate
The card offers a tiered rewards rate:
- 5x points on travel purchased through Chase Travel℠.
- 3x points on dining (including eligible delivery services and takeout).
- 3x points on select streaming services.
- 3x points on online grocery purchases (excluding Target, Walmart, and wholesale clubs).
- 2x points on other travel purchases.
- 1x points on all other purchases.
Additionally, through March 2025, cardholders can earn:
- 5x points on eligible Peloton purchases (with a maximum earning of 25,000 points).
- 5x points on Lyft rides.
Introductory Offer
New cardholders can earn 60,000 bonus points after spending $4,000 on purchases in the first three months from account opening. When redeemed through Chase Travel℠, these points are worth $750.
Ongoing APR
The ongoing APR for the Chase Sapphire Preferred® Card ranges from 21.49% to 28.49% Variable APR. The cash advance APR is 29.99% Variable, and the penalty APR is up to 29.99%.
Foreign Transaction Fee
Good news for international travelers – the Chase Sapphire Preferred® Card has no foreign transaction fees.
Additional Benefits
The card comes with several valuable travel-related benefits:
- $50 Annual Chase Travel Hotel Credit.
- Trip Cancellation/Interruption Insurance.
- Auto Rental Collision Damage Waiver.
- Lost Luggage Insurance.
- Complimentary access to DashPass (offering $0 delivery fees and lower service fees for at least one year when activated by December 31, 2024).
How Much is a Point Worth?
Chase Ultimate Rewards® points earned with this card are worth 1.25 cents each when redeemed for travel through Chase Travel℠. This makes the points more valuable when used for travel rather than other redemption options like cash back, gift cards, or merchandise.
Rewards Comparison
| Feature | Chase Sapphire Preferred® Card | Chase Sapphire Reserve® | Discover it® Miles | American Express® Gold Card |
|---|---|---|---|---|
| Annual Fee | $95 | $550 | $0 | $250 |
| Rewards Rate | 1x-5x Points | 1x-10x Points | 1.5x Miles | 1x-4x Points |
| Intro Offer | 60,000 Points | 60,000 Points | Discover Match® Miles | 60,000 Points |
| Recommended Credit Score | 690-850 | 690-850 | 690-850 | 690-850 |
Benefits and Perks
Solid Sign-Up Bonus
The 60,000 bonus points offered to new cardholders are a significant perk. This bonus is worth $750 when redeemed through Chase Travel℠, making it one of the most attractive sign-up bonuses available for a travel rewards card.
Bonus Rewards in Multiple Categories
The card’s tiered rewards structure allows you to earn extra points in several spending categories. This can be particularly beneficial if you frequently dine out, use streaming services, or travel.
Transfer Partners
One of the standout features of the Chase Sapphire Preferred® Card is its 1:1 transfer partners. These partners include major airline and hotel loyalty programs like United Airlines, Southwest Airlines, Marriott, and Hyatt. This flexibility can help you maximize the value of your points.
Complimentary DashPass Membership
Cardholders can enjoy complimentary DashPass membership, which offers $0 delivery fees and reduced service fees on eligible orders with DoorDash.
Travel Protections
The card comes with robust travel protections, including Trip Cancellation/Interruption Insurance, Auto Rental Collision Damage Waiver, and Lost Luggage Insurance. These benefits can provide peace of mind when you’re on the road.
$50 Annual Chase Travel Hotel Credit
Every account anniversary year, cardholders receive a $50 credit for hotel stays purchased through Chase Travel℠. This benefit can help offset the annual fee.
Anniversary Bonus
Each account anniversary, cardholders will earn bonus points equal to 10% of total purchases made the previous year. This can add up quickly, especially if you use the card for significant travel and dining expenses.
Drawbacks and Considerations
Complexity
The Chase Sapphire Preferred® Card’s rewards structure can be complex, with different rates for different categories and the requirement to use the Chase portal for the best redemption value. This might be overwhelming for some users who prefer a simpler rewards program.
Limited Premium Perks
While the card offers several valuable benefits, it lacks some of the premium perks available with higher-end cards like the Chase Sapphire Reserve®. For example, the Sapphire Reserve® offers a $300 annual travel credit and access to airport lounges through Priority Pass Select.
Requires Good to Excellent Credit
To qualify for the Chase Sapphire Preferred® Card, you’ll need a good to excellent credit score (690-850). This may be a barrier for some applicants.
Frequently Asked Questions (FAQ)
Is the Chase Sapphire Preferred® Card worth the annual fee?
For frequent travelers and those who spend a lot on dining and travel, the $95 annual fee can be easily offset by the rewards and benefits offered by the card. However, if you don’t travel often or spend much in the bonus categories, it might be worth considering a no-annual-fee card.
Can I use the Chase Sapphire Preferred® Card for international travel?
Yes, the card has no foreign transaction fees, making it an excellent choice for international travel. Additionally, you’ll earn rewards on purchases made abroad.
How do I earn the 60,000 bonus points?
To earn the 60,000 bonus points, you need to spend $4,000 on purchases in the first three months from account opening. These points can be redeemed for $750 worth of travel through Chase Travel℠.
What is the value of Chase Ultimate Rewards® points?
Chase Ultimate Rewards® points are worth 1.25 cents each when redeemed for travel through Chase Travel℠. This makes them more valuable for travel redemptions compared to other options like cash back.
Can I transfer my points to airline or hotel loyalty programs?
Yes, you can transfer your Chase Ultimate Rewards® points to several airline and hotel loyalty programs at a 1:1 ratio. This can provide additional flexibility and potentially more value for your points.
The Bottom Line
The Chase Sapphire Preferred® Card is a powerful tool for travelers looking to maximize their rewards. With its generous sign-up bonus, versatile rewards structure, and valuable travel benefits, it stands out as one of the best travel credit cards on the market. However, its complexity and the need for a good to excellent credit score may not make it the best fit for everyone. If you’re willing to navigate its intricacies, the Chase Sapphire Preferred® Card can be an excellent companion on your travels.
How the Chase Sapphire Preferred® Card Compares
| Feature | Chase Sapphire Preferred® Card | Chase Sapphire Reserve® | Discover it® Miles | American Express® Gold Card |
|---|---|---|---|---|
| Annual Fee | $95 | $550 | $0 | $250 |
| Rewards Rate | 1x-5x Points | 1x-10x Points | 1.5x Miles | 1x-4x Points |
| Intro Offer | 60,000 Points | 60,000 Points | Discover Match® Miles | 60,000 Points |
| Recommended Credit Score | 690-850 | 690-850 | 690-850 | 690-850 |
By considering your travel habits and financial goals, you can determine if the Chase Sapphire Preferred® Card is the right fit for you. If you find yourself frequently traveling and dining out, the rewards and benefits offered by this card can significantly enhance your overall experience and savings.
