Card Review: Chase Sapphire Preferred Card
The Chase Sapphire Preferred card is Chase’s introductory premium travel credit card. Sandwiched between the Chase Freedom Flex card and the Chase Sapphire Reserve card, it was considered an "earn-it-and-burn-it" product given its mediocre multipliers and weak long-term benefits. Recently, Chase revamped the card, and while the update is not mind-blowing, it is a significantly positive change for potential and current cardholders, and its all-time high sign-up bonus will certainly entice anyone needing an introductory premium travel card.
The Chase Sapphire Preferred card has been revamped. Photo credit: www.chase.com
Sign-Up Bonus & Multiplier: Worth up to $2,000 or more!
The Chase Sapphire Preferred card is currently offering a sign-up bonus of 100,000 Ultimate Rewards (UR) points, after spending $4,000 in the first three months of account opening. I personally value UR points at 2 cents per point, valuing this sign-up bonus at $2,000. With first-class flights or ambitious Hyatt bookings, the sign-up bonus can be worth a bit more. Before you apply, make sure you haven’t had a Sapphire product from Chase in the past 48 months!
The sign-up bonus is out of this world. Get it while you can. Photo credit: www.chase.com
The card earns 5X UR points on all travel purchased through the Chase Ultimate Rewards portal, 3X back on dining purchases (including eligible meal delivery services), 3X back on select streaming services, 3X back on online grocery purchases (excluding Target, Walmart, and other wholesale clubs), 2X back on travel purchases (including airfare, hotels, cruises, and rideshares), and 1X back on all other purchases.
Shopping from mega stores like Walmart would not qualify for additional UR points.
Annual Fee & Benefits
The Chase Sapphire Preferred card will continue to have an annual fee of $95, which is not waived during the first year of card membership. This makes the card a Tier 3 card, according to my credit card categorization. The new welcome changes are its benefits: anniversary point bonus and $50 hotel credit. The 10% anniversary point bonus is straightforward; You will earn bonus UR points equal to 10% of total purchases, based on your previous card year spend. For instance, if you spent $20,000 by the end of your card membership year, you will receive 2,000 bonus UR points. Be aware that you are eligible to receive the boost only if you renew your card. On the other hand, the $50 hotel credit is available immediately after opening the card, and existing cardmembers can exercise the credit after their next account anniversary. This newly added perk can be applied towards hotel stays purchased through the Ultimate Rewards Travel portal.
Though $50 towards a hotel stay won’t cut for many people, considering the card’s annual fee of $95, the new benefit seems generous.
Being a premium travel card, the Chase Sapphire Preferred card can redeem UR points 25% higher in travel through the Chase Travel Portal. That is much better than cashing out valuable UR points at a 1:1 rate, but I much prefer to utilize Chase's 11 airline and three hotel transfer partners to get the most out of UR points.
Transfer UR points to British Airways and use them to fly short-haul American Airlines flights!
The airline transfer partners are:
Aer Lingus
Air Canada
British Airways
Air France/KLM
Emirates
Iberia
JetBlue
Singapore Airlines
Southwest
United Airlines
Virgin Atlantic
The hotel transfer partners are:
IHG
Hyatt
Marriott
You can transfer points to hotels and stay at luxurious properties in Hawaii.
On top of the transfer travel partners, cardmembers can enjoy primary auto rental coverage, trip cancellation/interruption insurance, baggage delay insurance, and trip delay reimbursement. I particularly value its primary auto rental coverage since many Citi and AMEX travel cards only offer secondary auto rental coverage. While some may be a little disappointed to find that the Chase Sapphire Preferred card doesn't offer any credit towards Global Entry /TSA Precheck or even provide a Priority Pass membership. Although they can be a nice cherry on top, if you have another premium travel credit card, there’s a high chance that it has at least one of those perks, if not both.
If the Sapphire Preferred card is your only premium card, you won’t have access to lounges.
My Thoughts on the Update
Not everyone is going to be a fan of the revamp, but I think it is certainly a positive change from the past. Chase has great no-annual-fee credit cards and premium travel credit cards, and it can be difficult to be an appealing middle child. The 10% anniversary boost can attract those who use one credit card for all purchases, and the Chase Sapphire Preferred card does actually cover almost all categories. The $50 hotel credit is more of a coupon, as many hotels on the Chase Travel Portal are luxury properties. While I am happy that Chase listened to customers by including the grocery multiplier, I am disappointed that it is limited to online grocery purchases. I understand online grocery shopping is only getting more popular, especially among the card’s target audience. However, if Chase made the multiplier eligible for all grocery spends, I assume it would be a keeper card for many people.
Not having an in-person grocery multiplier is a red flag for me.
Summary
Though not perfect, the Chase Sapphire Preferred card has been improved significantly. The multipliers have been increased, and new benefits have been added, all without increasing the annual fee. The 10% anniversary bonus and the $50 hotel credit are nice perks to have, but I don’t think they are game-changers. However, the new multipliers can really convince cardmembers to keep the card for a long period of time. My only gripe with the new multipliers is that it earns 3X UR points towards only online grocery purchases. Chase has pivoted the Sapphire Preferred card’s identity from a premium travel credit card to a lifestyle card. With its amazing sign-up bonus offer, you should definitely apply for a card if you can qualify for the bonus.
