Chase Sapphire Preferred Review
If you’re in the market for a top-tier travel credit card that won’t hit your wallet with hefty annual fees, the Chase Sapphire Preferred is a strong contender. Known for its generous signup bonus, valuable rewards program, and extensive travel perks, this card is a favorite among frequent travelers and those just starting to explore travel rewards. But is it really worth it? In this in-depth review, we’ll cover everything you need to know about the Chase Sapphire Preferred, including how the reward system works, the best ways to redeem your points, the card’s travel benefits, fees, pros and cons, and how it compares to competitors. By the end, you’ll know whether the Chase Sapphire Preferred is the right fit for your wallet.
Key Features and Benefits
Welcome Bonus
One of the most enticing features of the Chase Sapphire Preferred is its massive signup bonus. New cardholders can earn 60,000 Chase Ultimate Rewards points after spending $4,000 in the first three months. These points are worth approximately $750 when redeemed for travel through Chase Travel. If you transfer them to airline and hotel partners, the value could exceed $1,200, depending on how you utilize them.
Pro Tip: Make sure you can meet the $4,000 spending requirement in the first three months to qualify for the bonus.
Earning Rewards
The Chase Sapphire Preferred offers competitive reward rates across various spending categories:
- 5x points on travel booked through Chase Travel
- 3x points on dining at restaurants, including takeout and delivery
- 3x points on streaming services and online grocery purchases (excluding Walmart and Target)
- 2x points on all other travel purchases outside of Chase Travel
- 1x point on all other purchases
To maximize your everyday spending, it’s best to use the card for travel, dining, and streaming services. For non-bonus categories, consider pairing it with a flat-rate cashback card.
Redemption Options
The versatility of the Chase Sapphire Preferred’s rewards program is one of its key selling points. Here’s how you can maximize the value of your points:
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Travel through Chase Travel: Points are worth 25% more when redeemed for flights, hotels, and car rentals. For example, 60,000 points can yield $750 in travel value.
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Transfer to Travel Partners: You have the option to transfer points to various airline and hotel partners, often resulting in better value. Popular airline partners include United, Southwest, JetBlue, and British Airways, while hotel partners include Hyatt and IHG.
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Cashback and Gift Cards: Points can also be redeemed for statement credits, but they are only worth one cent per point, which isn’t the best use of your points.
- Pay with Points: You can use your points for purchases at retailers like Amazon or Apple, but this option typically offers lower value.
Pro Tip: Transferring points to travel partners can effectively double their value compared to using them for cashback redemptions.
Travel Benefits and Perks
The Chase Sapphire Preferred excels in providing valuable travel benefits, making it particularly appealing for frequent travelers. Here are some key perks:
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Primary Rental Car Insurance: Unlike most credit cards that offer secondary coverage, the Sapphire Preferred provides primary rental car insurance, allowing you to decline the rental company’s costly insurance.
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Trip Cancellation/Interruption Insurance: This covers up to $10,000 per person and $20,000 per trip if your plans are disrupted for eligible reasons.
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Baggage Delay Insurance: You’ll receive $100 per day for up to five days if your luggage is delayed for six or more hours.
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Trip Delay Reimbursement: Covers up to $500 per ticket if your flight is delayed by 12 or more hours or necessitates an overnight stay.
- No Foreign Transaction Fees: Save 3% with no foreign transaction fees while traveling abroad.
Tip: If you often rent cars or book international flights, these benefits can easily offset the card’s annual fee.
Annual Fee and Other Costs
The Chase Sapphire Preferred comes with a $95 annual fee, which is significantly lower than many premium travel credit cards. However, keep the following costs in mind:
- APR: 21.49% to 28.49% variable APR. Avoid interest by paying your balance in full each month.
- Late Fees: Up to $40 for late payments.
- Balance Transfers: 5% of the amount transferred with a minimum fee of $5.
Is the $95 annual fee worth it? If you frequently use this card for travel, dining, and rewards, the benefits will likely outweigh the cost.
Pros and Cons
Pros
- Significant signup bonus worth at least $750 in travel.
- Best-in-class travel protections, including trip cancellation and rental car insurance.
- No foreign transaction fees, making it ideal for international travel.
- 1:1 point transfers to maximize value.
- User-friendly and beginner-friendly design.
Cons
- $95 annual fee, which may not be ideal for all users.
- No airport lounge access, unlike some premium travel cards.
- High APR if you carry a balance.
Who Should Consider the Chase Sapphire Preferred?
The Chase Sapphire Preferred is an excellent option for:
- Frequent Travelers: If you travel a few times a year, the benefits can easily pay for the card’s annual fee.
- Dining Enthusiasts: Those who dine out often can make the most of the 3x points on dining.
- Flexible Rewards Seekers: Ideal for individuals who want a versatile rewards program.
- Beginners in Travel Hacking: Perfect for newcomers looking to get into travel rewards.
Conclusion
The Chase Sapphire Preferred card remains one of the best mid-tier travel credit cards on the market. With its strong welcome bonus, extensive travel protections, and flexible rewards, it’s a fantastic choice for frequent travelers and those wishing to maximize their spending potential. If you’re looking for a travel card that offers excellent benefits and a low annual fee, the Chase Sapphire Preferred should be at the top of your list.
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