Everything You Need to Know About the Chase Sapphire Preferred®
My Take: Score: 9/10 — The Chase Sapphire Preferred is my favorite starter card for anyone looking to get into travel rewards. It offers a great balance of benefits, earning potential, and flexibility, making it an excellent choice for anyone and a keeper card.
The Chase Sapphire Preferred® Card is one of the most popular travel rewards credit cards on the market, and for good reason. It combines flexibility, high earning rates, and valuable travel benefits, making it a go-to choice for both beginners and seasoned travelers. In this in-depth guide, we’ll explore everything you need to know about the Chase Sapphire Preferred, from its earning structure to its travel perks, transfer partners, and more.
Overview of the Chase Sapphire Preferred®
The Chase Sapphire Preferred® is a mid-tier travel rewards card that offers excellent value through the Chase Ultimate Rewards program. It provides solid rewards on popular spending categories, valuable travel protections, and the flexibility to transfer points to a wide range of airline and hotel partners.
Key Benefits:
High Earning Rates on Travel and Dining
Flexible Redemption Options
Generous Sign-Up Bonus
Valuable Travel Protections
Access to Chase Ultimate Rewards®
Let’s take a closer look at all the aspects that make the Chase Sapphire Preferred a standout choice.
Sign-Up Bonus
Most Common Offer:
The Chase Sapphire Preferred typically offers a generous sign-up bonus. The most common offer is:
Earn 60,000 Chase Ultimate Rewards points after spending $4,000 on purchases in the first three months from account opening.
Estimated Value: The bonus is worth at least $750 when redeemed through the Chase Travel Portal, but can be worth more if transferred to travel partners.
Occasional Elevated Offers: Sometimes, Chase runs promotions that boost the sign-up bonus to 80,000 points or more. It’s worth keeping an eye out for these elevated offers if you’re considering applying for the card.
Earning Rates
The Chase Sapphire Preferred offers competitive earning rates on everyday spending categories, making it easy to accumulate points quickly. Here’s how you can earn:
5x points on travel purchased through Chase Ultimate Rewards
3x points on dining at restaurants, including takeout and eligible delivery services
3x points on select streaming services
3x points on online grocery purchases (excluding Walmart, Target, and wholesale clubs)
2x points on other travel purchases
1x point on all other purchases
How the Earning Rates Work
The Chase Sapphire Preferred is ideal for those who spend frequently on travel and dining, as it allows you to earn multiple points per dollar spent in these categories. The card also rewards you for using popular streaming services and grocery delivery, making it versatile for everyday spending.
Redemption Options
One of the main reasons people choose the Chase Sapphire Preferred is because of its flexible redemption options. You can redeem your points in multiple ways, each providing different levels of value. Let’s break them down:
1. Redeeming Points Through the Chase Ultimate Rewards® Travel Portal
Value: 1.25 cents per point
How It Works: You can use your points to book flights, hotels, car rentals, and activities directly through the Chase Ultimate Rewards travel portal. Points are worth 25% more when redeemed this way (e.g., 60,000 points = $750 in travel).
2. Transfer Points to Travel Partners
Value: Varies, but often provides the best value
How It Works: You can transfer points at a 1:1 ratio to any of Chase’s 14 airline and hotel partners, allowing you to book directly with the partner using your points. This method often provides the most value, especially for premium cabin flights.
Transfer Partners:
Airlines: Aer Lingus AerClub, Air Canada Aeroplan, British Airways Executive Club, Emirates Skywards, Flying Blue (Air France/KLM), Iberia Plus, JetBlue TrueBlue, Singapore Airlines KrisFlyer, Southwest Airlines Rapid Rewards, United MileagePlus, Virgin Atlantic Flying Club
Hotels: IHG Rewards Club, Marriott Bonvoy, World of Hyatt
3. Redeem Points for Cash Back or Statement Credits
Value: 1 cent per point
How It Works: Points can be redeemed for cash back or as a statement credit to reduce your balance. This option is less valuable than travel redemptions but offers flexibility.
4. Pay Yourself Back®
Value: 1.25 cents per point (limited time and select categories)
How It Works: This feature allows you to redeem points for everyday purchases like groceries, dining, and home improvement at a higher value, similar to redeeming through the travel portal.
5. Redeem for Gift Cards or Amazon Purchases
Value: 1 cent per point (gift cards), less on Amazon
How It Works: You can redeem points for a variety of gift cards or use them to pay for purchases on Amazon. While convenient, this option doesn’t offer the best value.
Annual Fee
Annual Fee: $95
Is It Worth It? Given the sign-up bonus, ongoing earning potential, redemption options, and all the additional benefits, the annual fee is easily offset for most cardholders.
Additional Travel Benefits
1. Travel Insurance
Trip Cancellation/Interruption Insurance: Up to $10,000 per person and $20,000 per trip for pre-paid, non-refundable travel expenses if your trip is canceled or interrupted for covered reasons.
Trip Delay Reimbursement: If your travel is delayed more than 12 hours, you can be reimbursed for expenses like meals and lodging (up to $500 per ticket).
Baggage Delay Insurance: Reimbursement for essentials like toiletries and clothing if your baggage is delayed more than 6 hours (up to $100 a day for 5 days).
Lost Luggage Reimbursement: Up to $3,000 per passenger if your luggage is lost or damaged.
2. Travel and Emergency Assistance
24/7 Assistance: Access to emergency assistance services, including medical referrals, legal referrals, and other travel and emergency services while traveling.
3. Auto Rental Collision Damage Waiver (CDW)
Primary Coverage: Provides primary coverage for rental cars, so you can decline the rental company's insurance. Coverage is for theft and damage to rental cars.
Purchase Protection and Extended Warranty
1. Purchase Protection
Coverage: Covers new purchases for 120 days against damage or theft, up to $500 per claim and $50,000 per account.
Why It’s Useful: If you accidentally damage a new item or it gets stolen, you can get a refund or repair under this protection.
2. Extended Warranty Protection
Coverage: Extends the time period of the U.S. manufacturer's warranty by an additional year on eligible warranties of three years or less.
Why It’s Useful: Offers peace of mind when purchasing expensive items, knowing that you’re covered beyond the manufacturer’s warranty.
Who Should Get the Chase Sapphire Preferred?
The Chase Sapphire Preferred is an excellent option for:
Travel Enthusiasts: People who travel often and want a flexible rewards card with strong travel protections.
Foodies and Diners: Those who frequently dine out, order takeout, or use delivery services.
Everyday Spenders: Anyone looking for a card with solid earnings on daily purchases, especially on categories like travel, dining, streaming, and online groceries.
Beginner and Seasoned Travelers: Beginners will find the card easy to use and understand, while experienced travelers will appreciate the transfer options and protections.
Final Thoughts
The Chase Sapphire Preferred is a well-rounded travel rewards card that offers excellent value for a relatively low annual fee. With a generous sign-up bonus, flexible redemption options, and valuable travel and purchase protections, it’s no wonder that this card remains one of the most popular choices for travelers. Whether you’re just starting to explore the world of travel rewards or you’re a seasoned points enthusiast, the Chase Sapphire Preferred can help you make the most of your spending and get closer to your travel goals.