Credit Card Review: Chase Sapphire Preferred
Chase offers several Sapphire credit cards, but not everyone knows about the no-annual-fee Sapphire card, which lacks significant value. However, there are two premium options worth considering: the Sapphire Preferred and Sapphire Reserve. The Chase Sapphire Reserve card, priced at $550 annually, comes with extensive benefits. On the other hand, the Chase Sapphire Preferred card offers an affordable alternative with attractive rewards multipliers, making it a compelling choice for many. Let’s explore why the Chase Sapphire Preferred card deserves a place in your wallet.
The Chase Sapphire Preferred card is an excellent all-around travel credit card for most travelers.
Sign-Up Bonus & Multipliers
The Chase Sapphire Preferred card currently offers an elevated public sign-up bonus of 75,000 Ultimate Rewards (UR) points after spending $4,000 within the first three months. However, if you visit a local Chase branch, you might find a targeted offer of 85,000 UR points. This higher offer is divided into two parts: you’ll earn 75,000 points after spending $4,000 in the first three months, plus an additional 10,000 points after reaching $6,000 in total spending within the first six months. Both the online and in-branch offers are available for a limited time, and with each UR point valued at 2 cents, the sign-up bonus can be worth between $1,500 and $1,700.
The elevated 75,000 UR points as a sign-up bonus can be worth $1,500 if you find award sweet spots. Photo by Chase.
The Chase Sapphire Preferred card features a wide range of bonus categories, providing numerous opportunities to earn valuable UR points. Cardholders earn 5X UR points on travel purchases made through the Chase Travel portal, 3X points on dining, online grocery purchases (excluding big-box retailers like Target and Walmart), and streaming services like Netflix and Hulu. For travel purchases outside the Chase Travel portal, the card earns 2X points, and all other purchases earn 1X points per dollar spent. Additionally, through March 2025, cardmembers can earn 5X points on Lyft rides and Peloton equipment and accessory purchases of $150 or more, with a limit of 25,000 bonus points.
If you’d like to apply for the Chase Sapphire Preferred card, please consider using my referral link. It will continue to help fund my blog operations and help visitors make informed decisions to maximize their rewards. Thank you! Click HERE to access my referral link!
Application Rules to Be Aware Of
Before applying for the Chase Sapphire Preferred card, it's important to understand Chase's 5/24 credit card application rule. The rule is straightforward: if you have opened more than five credit cards from any issuer within the past 24 months, your Chase credit card application will be automatically denied. The only partial exception is for Chase business credit cards, which do not count toward the five-card limit, but if you exceed the limit, your application for a Chase business credit card will be rejected.
Chase has numerous application rules for its Sapphire products, in addition to its infamous 5/24 Rule. Photo by Ashim D’Silva on Unsplash.
Additionally, if you have received a sign-up bonus from any Sapphire card in the last 48 months, you are not eligible for another Sapphire sign-up bonus. For example, if you received a bonus from the Chase Sapphire Reserve card on April 15, 2018, you would be eligible for another Sapphire bonus on or after April 16, 2022. However, to be safe, consider waiting an extra month to the 48-month clock. Lastly, you cannot apply for another Sapphire card if you already have an open one. For instance, if you currently hold the Chase Sapphire Reserve card, you cannot apply for the Chase Sapphire Preferred card.
Annual Fee & Benefits
The Chase Sapphire Preferred card has an annual fee of $95, which is not waived in the first year. However, the card offers significant earning potential and a valuable sign-up bonus that can more than justify the cost.
$50 Annual Hotel Credit
One of the key benefits that can significantly offset the annual fee is the card’s $50 annual hotel credit. Cardholders can receive up to $50 in statement credits each account anniversary year for hotel stays booked through Chase Travel. While hotel prices on the Chase Travel portal can sometimes be higher than booking directly, this isn't always the case. For most users, the $50 annual hotel credit effectively reduces the card’s annual fee by half.
Chase Travel offers a fine selection of premium hotels, though they often come at a slightly higher price than booking directly. Photo by Chase Travel.
10% Anniversary Bonus UR Points
On each cardmember anniversary, you will earn bonus UR points equal to 10% of your annual spending. If the Chase Sapphire Preferred card is your primary credit card, you’ll find this additional benefit particularly appealing. For instance, if you spend $30,000 in a year, you’ll receive an extra 3,000 UR points. While the 10% boost in UR points may not seem substantial unless you spend heavily on the card, it can partially help offset the annual fee.
Travel Protection & Car Rental Insurance
Although the Chase Sapphire Preferred card is an introductory travel credit card, it comes with excellent travel protection benefits. One standout feature is its primary rental car coverage. In case of a car accident, the card's insurance will be the first layer of protection, before triggering claims on your personal auto insurance policy. By paying for car rentals with the Chase Sapphire Preferred card, you can avoid paying daily premiums for the rental car’s collision protection policy. Additionally, cardholders benefit from trip cancellation and interruption coverage, lost luggage reimbursement, and baggage delay insurance, making it a well-rounded choice for travelers.
Primary rental car coverage can literally save you thousands of dollars in case of a car accident. Photo by Michael Jin on Unsplash.
Transferring Chase UR Points to Travel Partners
In my view, the notable feature of the Chase Sapphire Preferred card is the access to travel partners. Cardholders can transfer valuable UR points to 14 airline and hotel partners at a 1:1 ratio, unlocking even greater value. These travel partners include:
AerClub, loyalty program of Aer Lingus
British Airways Executive Club
Emirates Skywards®
Air France KLM Flying Blue
Iberia Plus
JetBlue TrueBlue
Singapore Airlines KrisFlyer
Southwest Airlines Rapid Rewards®
United MileagePlus®
Virgin Atlantic Flying Club
Air Canada Aeroplan
IHG® Rewards Club
Marriott Bonvoy™
World of Hyatt®
Occasionally, Chase offers promotions that enhance the value of point transfers. For instance, from May 2024 until June 15, 2024, you can transfer Chase Ultimate Rewards points to Marriott Bonvoy with a 40% bonus. Limited-time promotions like this allow you to transfer fewer UR points while receiving the same value, making your points significantly more valuable.
Bonus UR point promotions can greatly enhance the value of UR points, allowing you to maximize their benefits. Photo by Chase.
25% Boost for UR Points via Chase Travel
If transferring UR points to travel partners feels intimidating, cardholders can redeem their points through the Chase travel portal at a fixed rate of 1.25 cents per point. While this option offers better value than cashback, it is generally less advantageous than transferring points to travel partners, which can yield higher returns. However, for those who prefer a straightforward redemption process without the hassle of finding award space, using the Chase travel portal can be a convenient and beneficial choice.
If transferring UR points to travel partners feels daunting, cardholders can redeem them through the Chase travel portal at a fixed rate of 1.25 cents per point. Photo by Luca Bravo on Unsplash.
Summary
The Chase Sapphire Preferred card is an excellent introductory travel credit card, currently offering an enhanced sign-up bonus of 75,000 UR points after spending $4,000 within three months. With a modest annual fee of $95, the card provides substantial value. It includes premium travel protection, such as primary rental car coverage, and flexible redemption options, allowing you to use UR points through the Chase travel portal or by transferring them to 14 airline and hotel partners. Furthermore, the card features a $50 annual hotel credit and a 10% anniversary bonus on UR points, which can effectively offset the annual fee. With its well-rounded reward multipliers, the Chase Sapphire Preferred card is a versatile and appealing choice for many travelers.
If you’d like to apply for the Chase Sapphire Preferred card, please consider using my referral link. It will continue to help fund my blog operations and help visitors make informed decisions to maximize their rewards. Thank you! Click HERE to access my referral link!
