The Chase Sapphire Preferred® Card is a travel and dining rewards credit card issued by Chase Bank. Cardholders receive 2x points for spending on things like restaurants, airfare, hotels, and cafes. Chase Bank is a financial powerhouse with $2.6 trillion in assets and operations around the world. It offers 20 other travel credit cards, but the Sapphire Preferred® Card is one of the most flexible travel rewards cards in its repertoire.
The APR on the Chase Sapphire Preferred® Card is decent compared to its competition, but its rewards are where it stands out. If you are a frequent traveler, this card could be a fantastic choice for you.
The Essentials of the Chase Sapphire Preferred® Card
- APR:17.49% – 24.49%% variable
- Annual Fee: $95
- Primary Feature: Earn 2x the points on travel and dining
- Introductory Bonus Offer: Earn 60,000 bonus points when you spend $4,000 in the first three months
What’s Interesting about Chase Sapphire Preferred®
This card allows its members to earn rewards on an array of purchases. As a cardholder, you’ll get 2x the points on every dollar spent on travel and dining. For all other purchases, you earn 1 point per $1 spent.There is currently 5x points on Lyft rides through March 2022.
Plus, your points are worth 25% more when you redeem them on travel expenses like air tickets, cruises, hotel rooms, and car rentals through Chase Ultimate Rewards®. With Chase, 100 points are worth $1.25 toward travel. Therefore, the 60,000-point introductory offer is worth $750 when redeemed for travel expenses through Chase Ultimate Rewards®.
Additionally, Chase Sapphire Preferred® partners with many leading frequent travel programs and allows members to transfer points to miles on a one-to-one basis. Thus, one point can equal one point on many airline travel clubs, such as with British Airways, Emirates Air, and United Airlines. The same one-to-one deal applies to several of its hotel partners, like Hyatt and Marriott. There may be a points transfer fee, but Chase will let you know ahead of time before completing the transfer.
How else can you redeem your rewards? You can use the points towards cash, gift cards, travel, or utilize Pay with Points to pay your statement with points on Chase.
Also, the card has no foreign transaction fee and comes with fantastic travel coverage. If you book using the card, your trip is automatically insured up to $10,000 per person and $20,000 per trip for prepaid, nonrefundable travel expenses — even if you have to cancel due to sickness. Other coverage includes auto rental collision damage waiver, baggage delay insurance up to $100, and a trip delay reimbursement of up to $500 per ticket.
Things to Consider
The Chase Sapphire Preferred® Card doesn’t offer premium benefits like access to airport lounges or meal credits. If you’re a person who likes to travel luxuriously, you might want to look around.
Furthermore, two of the rewards options aren’t as beneficial as the others — cashback and Pay with Points. Pay with Points isn’t a bad deal — 100 points used as a statement credit counts as $0.80. However, when you use your points this way, you’re losing $0.45 per point compared to using it toward travel.
The cashback is a bit higher at $0.01 per point. Thus, 100 points equal a $1 statement credit that you can use toward participating merchant expenses. Chase offers more profitable ways of redeeming points than these, so if you’re looking for a credit card that will give you a fair amount of cashback, there is likely a better card out there for you.
Overall, if you’re not looking to maximize your rewards toward travel or dining, you might want to look into another card.
How to Get the Most from this Card
To get the biggest bang for your buck with this card, you would need to qualify for the introductory bonus of 60,000 points. You can do this by spending $4,000 in purchases in the first three months after opening the card. Also, you would want to use the card on dining and travel expenses to get twice the point rewards of regular spending.
Furthermore, to maximize your rewards, you would want to use the points toward travel booked through Chase Ultimate Rewards®. Points used this way are worth 25% more. If you’re a frequent traveler and don’t mind using Chase’s booking system to redeem your rewards, you could potentially earn a lot of travel rewards with this card.
Other Card Options that Might Interest You
Not quite sure the Chase Sapphire Preferred® Card is right for you? Don’t worry — there are plenty of other options out there for you.
The first card option, the Capital One® Venture® Card, has the same $95 annual fee, but the bank waives the fee for the first year. This card operates on miles rather than points. To receive the introductory bonus offer of 50,000 bonus miles, you must spend $3,000 in the first three months, which is less than Chase requires. The card comes with a similar APR of 17.24% – 24.49% variable but offers 2x the miles on all purchases.
The second card is also one of Chase’s options, the Chase Sapphire Reserve®. This card carries a hefty $550 annual fee but offers plenty of advantages for a frequent traveler that could make the initial expense worth it. One pro is a $300 travel credit each year, and another is 3x the points on travel immediately after earning your $300 travel credit, and dining. You also get 50% more for your points when you book through Chase Ultimate Rewards®. This card also offers a reimbursement of up to $100 for Global Entry or TSA PreCheck expenses, as well as access to over 1,000 global airport lounges. The APR is also similar at 18.49% – 25.49% variable.
The Final Word
Who could get the most out of a Chase Sapphire Preferred® Card? A frequent traveler who doesn’t need the luxury of free airport lounges could benefit from this card. Also, anyone who dines out often could benefit from 2x points with all of these purchases.
Who might want to go with a different option? A person who doesn’t travel much wouldn’t get the most out of this card. Additionally, someone who travels often but prefers deluxe perks will want to shop around for a card that offers more of those.