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Tuesday, March 19, 2024

Chase Sapphire Preferred® Card Review

Eric Bank

By: Eric Bank

Eric Bank
Eric Bank

Eric Bank is an M.B.A. who has covered financial and business topics since 1985, appearing regularly on Credible, eHow, WiseBread, The Nest, Zacks, Chron, BadCredit.org and dozens of other outlets. Eric specializes in taking complex subject matters and explaining them in simple terms for consumer audiences, particularly in the world of personal finance. Eric holds a Master's in Business Administration from New York University and a Master's in Finance from DePaul University.

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Editor: Jon McDonald

Jon McDonald
Jon McDonald

Jon leverages 15-plus years of journalism expertise to inform financial consumers about emerging trends and companies making an impact in the industry. He is most knowledgeable in the areas of budgeting, credit card rewards, and responsible credit use. Jon has a passion for writing and editing, and his articles have appeared in publications produced by The New York Times.

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Reviewer: Ashley Fricker

Ashley Fricker
Ashley Fricker

Ashley Fricker has more than a decade of experience as a finance contributor and editor, and has specialized in the credit card industry since 2015. Her credit card commentary is featured on national media outlets that include CNBC, MarketWatch, Investopedia, and Reader's Digest, among many others. She has worked closely with the world’s largest banks and financial institutions, up-and-coming fintech companies, and press and news outlets to curate comprehensive content and media. Ashley holds a bachelor's degree in multimedia journalism from Florida Atlantic University.

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Chase Sapphire Preferred® Card Review

Rated 4.9 /5.0 ★★★★★

There is a sweet spot among travel cards, with products that provide rich rewards and plentiful benefits in return for a moderate annual fee. Travelers who insist on the best could spend quite a bit more to get the most extravagant credit cards.

But if you want a sensible balance between cost and perks, consider the Chase Sapphire Preferred® Card. If you want a good travel card, this one can save you money and make your trip more enjoyable — and rewarding. Here we look at the details, benefits, and potential drawbacks of the card, as well as comparable alternatives that may make more sense, depending on what you’re after.

An Affordable Top-Tier Travel Card

The Chase Sapphire Preferred® Card provides many benefits for its $95 annual fee. You get 1:1 point transfers to travel partners, no foreign transaction fees, and a yearly credit for hotel stays you book through Chase.

More details from Chase:

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BEST OVERALL RATING

★★★★★

4.9

OVERALL RATING

  • Earn 60,000 bonus points after you spend $4,000 on purchases in the first 3 months from account opening. That's $750 when you redeem through Chase Ultimate Rewards®.
  • Enjoy benefits such as 5x on travel purchased through Chase Ultimate Rewards®, 3x on dining, select streaming services and online groceries, 2x on all other travel purchases, 1x on all other purchases, and $50 annual Ultimate Rewards Hotel Credit, plus more.
  • Get 25% more value when you redeem for airfare, hotels, car rentals and cruises through Chase Ultimate Rewards®. For example, 60,000 points are worth $750 toward travel.
  • Count on Trip Cancellation/Interruption Insurance, Auto Rental Collision Damage Waiver, Lost Luggage Insurance and more.
  • Get complimentary access to DashPass which unlocks $0 delivery fees and lower service fees for a minimum of one year when you activate by December 31, 2024.
  • Member FDIC
Intro (Purchases)
Intro (Transfers)
Regular APR
Annual Fee
Credit Needed
N/A
N/A
21.49%-28.49% Variable
$95
Good/Excellent

Your rewards points are worth 25% more when you redeem them for travel through the Chase Ultimate Rewards website. We’ll drill down on the card’s travel benefits a little later on — and they are extensive.

Add purchase protection and extended warranties, and you have a credit card that’s difficult to match, much less beat, for less than $100 per year.

Good to Excellent Credit (670+ FICO) Required

Although the Chase Sapphire Preferred® Card isn’t quite as posh as its big sibling, the Chase Sapphire Reserve®, approval still requires a good to excellent credit score. A Credit Karma survey found that most responding cardholders had scores above 700 and an average score of 741.

As is typical for US credit cards, Chase Bank enforces certain ownership restrictions, including the following:

  • Residence: You must have a valid permanent home address within the United States, the District of Columbia, Guam, Puerto Rico, or the US Virgin Islands, or have a US military address
  • Minimum age: 18 (19 in Alabama and Nebraska; 21 in Puerto Rico)
  • Identification: You must provide a Social Security number (SSN) or Employee Identification Number (EIN)
  • Income: You must earn enough income to afford the monthly minimum payments

You can apply online for the card if you do not have a Sapphire card and have yet to receive a new card member bonus for any Sapphire card in the past 48 months.

The online application collects your contact information, date of birth, mother’s maiden name, SSN, type of residence, employment status, and total gross annual income. The issuer performs a hard credit check, which may have a minor impact on your credit score. The process is fast, and you should receive a decision within seconds.

Benefits & Drawbacks of the Chase Sapphire Preferred® Card

This card has many benefits and few drawbacks, especially for those who value travel benefits. Let’s start with the positives:

Benefits

  • Signup bonus: The card provides new members a generous number of bonus points when they spend the required amount on purchases during a set period (often three months) after account opening.
  • Chase Ultimate Rewards Points: The card offers multiple reward tiers for purchases, depending on the merchant category.
  • Annual points bonus: You receive a point bonus annually on your total purchases for the previous year.
  • Hotel credit: You can earn a credit each year that you book hotel reservations through Chase Ultimate Rewards.
  • Travel redemption boost: Chase increases by 25% the value of points you redeem for travel booked through Chase Ultimate Rewards.
  • Point transfer options: You can transfer your points to partner loyalty programs, including Marriott, Hyatt, Southwest Airlines, and United Airlines. Points transfer on a 1:1 basis.
  • Additional benefits: The card offers numerous other benefits, including no foreign transaction fees, rental car insurance, various travel insurance coverages, purchase protection, and extended warranty protection.
  • Partner benefits: The card partners with Lyft, Instacart, and DoorDash, providing complimentary subscriptions and other benefits.

Drawbacks

  • Annual fee: The card isn’t free, but you will likely earn more in credits and savings than the $95 yearly cost.
  • Complex rewards: You may prefer a simple, flat rate to the card’s multi-tier travel rewards system.
  • Credit requirement: You need good to excellent credit to qualify for the card. A FICO score of 670 or higher should be sufficient.
  • APR: The card’s interest rate is a touch higher than average. Its fees are about average for its class.
  • No introductory 0% APR: If you are planning a big-ticket purchase or sizable balance transfer, you may prefer a card that offers an introductory 0% APR to new card members.

The card’s advantages easily outweigh its disadvantages. But if you want more options, check out the three alternative cards that we review next.

Comparable Travel Cards

The following three cards give the Chase Sapphire Preferred® Card a run for its money. Two are points cards, while the Capital One card awards miles that are redeemed no differently than points.

    BEST OVERALL RATING

    ★★★★★
    4.8

    OVERALL RATING

    • Enjoy a one-time bonus of 75,000 miles once you spend $4,000 on purchases within 3 months from account opening, equal to $750 in travel
    • Earn unlimited 2X miles on every purchase, every day
    • Earn 5X miles on hotels and rental cars booked through Capital One Travel, where you'll get Capital One's best prices on thousands of trip options
    • Miles won't expire for the life of the account and there's no limit to how many you can earn
    • Receive up to a $100 credit for Global Entry or TSA PreCheck®
    • Use your miles to get reimbursed for any travel purchase—or redeem by booking a trip through Capital One Travel
    • Enrich every hotel stay from the Lifestyle Collection with a suite of cardholder benefits, like a $50 experience credit, room upgrades, and more
    • Transfer your miles to your choice of 15+ travel loyalty programs
    Intro (Purchases)
    Intro (Transfers)
    Regular APR
    Annual Fee
    Credit Needed
    N/A
    N/A
    19.99% - 29.99% (Variable)
    $95
    Excellent, Good

    The Capital One Venture Rewards Credit Card has an effective rewards rate of 2% for all purchases because of its flat redemption rate of one cent per mile. With a $95 annual fee, you can break even by making at least $4,750 in purchases annually — which is less than $400 a month.

    The card has flexible credit requirements and generous credit limits. It features a $100 credit for Global Entry or TSA PreCheck, no foreign transaction fees, and Hertz Five Star status. But it lacks many of the travel perks available on the Chase Sapphire Preferred® Card.

      American Express® Gold Card Review

      at the issuer'ssecure website

      BEST OVERALL RATING

      ★★★★★
      4.8

      OVERALL RATING

      4.8/5.0
      • Earn 60,000 Membership Rewards® points after you spend $4,000 on purchases on your new card in your first 6 months of card membership
      • Earn 4X Points at U.S. supermarkets on up to $25,000 per calendar year in purchases. Also earn 4X Points at restaurants, including takeout and delivery, and 3X points on flights when booked directly with airlines or on amextravel.com. All other eligible purchases earn 1X point.
      • No foreign transaction fees
      • Earn up to $10 in statement credits monthly when you pay with the Gold Card at Grubhub, Seamless, Boxed and other participating partners. This can be an annual savings of up to $120. Enrollment required.
      • Delight your senses when you book The Hotel Collection with American Express Travel. Get a $100 experience credit to use during your stay. A minimum 2-night stay is required.
      • $250 Annual Fee
      Intro (Purchases)
      Intro (Transfers)
      Regular APR
      Annual Fee
      Credit Needed
      N/A
      N/A
      20.49% - 28.49% Pay Over Time
      $250
      Excellent

      If you don’t mind a higher annual fee, the American Express® Gold Card offers many compelling benefits. As a no-preset-spending-limit (NPSL) card, it provides cardmembers with spending flexibility. The card’s travel benefits include baggage insurance, car rental loss and damage insurance, and no foreign transaction fees.

      Food lovers may drool over this American Express card because of its generous rewards on supermarket and restaurant purchases. You even receive credits when Grubhub delivers your food. And if you enjoy dining at first-class hotels, book a stay at The Hotel Collection through American Express Travel and earn an instant credit.

        Citi Premier® Card Review

        at the issuer'ssecure website

        BEST OVERALL RATING

        ★★★★★
        4.7

        OVERALL RATING

        • Earn 60,000 bonus ThankYou® Points after you spend $4,000 in purchases within the first 3 months of account opening.
          Plus, for a limited time, earn a total of 10 ThankYou® Points per $1 spent on hotel, car rentals, and attractions (excluding air travel) booked on the Citi Travel℠ portal through June 30, 2024.
        • Earn 3 Points per $1 spent at Gas Stations, Air Travel and Other Hotels
        • Earn 3 Points per $1 spent at Restaurants and Supermarkets
        • Earn 1 Point per $1 spent on all other purchases
        • Annual Hotel Savings Benefit
        • 60,000 ThankYou® Points are redeemable for $600 in gift cards or travel rewards at thankyou.com
        • No expiration and no limit to the amount of points you can earn with this card
        • No Foreign Transaction Fees on purchases
        Intro (Purchases)
        Intro (Transfers)
        Regular APR
        Annual Fee
        Credit Needed
        N/A
        N/A
        21.24% - 29.24% (Variable)
        $95
        Excellent, Good

        Additional Disclosure: Citi is a CardRates advertiser.

        The Citi Premier® Card provides a tiered reward system with bonus rewards on gas, supermarket purchases, and other common spending categories. This card charges a $95 annual fee, but the introductory welcome bonus and ongoing rewards justify it.

        You can redeem the card’s ThankYou Points in several ways, but they offer the best value when you use them for free flights through the Citi Travel Portal. The card does not charge a foreign transaction fee. Also, look out for occasional limited-time offers from Citi.

        FAQs: How Do Points Work on the Chase Sapphire Preferred® Card?

        This card distributes its rewards in the form of points. The top rewards rate applies to travel you book through Chase Ultimate Rewards.

        You earn a lower bonus rate on restaurant meals, streaming services, and online grocery purchases (excluding certain big retailers and wholesale clubs). The next tier covers other travel expenses. Finally, the base reward rate applies to all other eligible purchases.

        Chase Ultimate Rewards Screenshot
        Points can be redeemed through Chase Ultimate Rewards.

        The card frequently sponsors temporary promotions that offer bonus points on purchases from selected merchants, including Peloton and Lyft.

        New cardmembers earn a large cache of bonus points when they sign up for the card. In addition, the card’s anniversary bonus provides you extra points based on your total eligible purchases for the previous year.

        The Chase Sapphire Preferred® Card‘s points are worth $0.01 each. But their value expands by 25% when you redeem them for travel through Chase Ultimate Rewards. The offer applies to airline flights, hotel stays, and travel via rental cars, trains, or ships.

        If you prefer, you can transfer your points to partner loyalty programs, as we explain below. You can redeem your Ultimate Rewards points in other ways, including for the following items:

        • Cash: You can convert your points into cash back through a direct deposit to a Chase account or via a mailed check.
        • Statement credits: You can apply your points to your monthly balance. They are worth one cent per point.
        • Gift cards: The conversion rate is the same as that for statement credits, but Chase regularly offers gift cards at discounted prices.
        • Pay Yourself Back program: Chase introduced this program during the pandemic lockdowns of 2020. It lets you receive a statement credit on one or more of your eligible purchases.
        • Pay for merchandise: You can use your Ultimate Rewards points to pay for all or part of your merchandise purchases. Point values depend on which redemption option you choose. The values are generally lower than those for statement credits or gift cards. Redeeming your points can help you obtain the latest products from Amazon or Apple, including all the gear from the Apple Ultimate Rewards store.

        If you prefer, you can transfer points to partner loyalty programs, as explained below.

        What Are This Card’s Travel Benefits?

        The Chase Sapphire Preferred® Card offers a boatload of travel benefits, as you can see in the following chart. Few other cards with sub-$100 annual fees can come close to these benefits.

        TRAVEL BENEFIT DESCRIPTION
        Travel Protections Your coverage Includes trip cancellation/interruption insurance, an auto rental collision damage waiver, baggage delay insurance, trip delay reimbursement, travel and emergency assistance services, and travel accident insurance.
        No Foreign Transaction Fees You can purchase items abroad with no additional charges.
        Points Bonus on Travel Purchases You earn bonus points on general travel purchases and a higher bonus rate on the travel you book through Chase Ultimate Rewards.
        25% More Value on Travel Redemption Your points are worth 25% more when you redeem them for travel via Chase Ultimate Rewards. This benefit applies to flights, hotels, car rentals, cruises, and more.
        Point Transfer to Travel Partners You can transfer points on a 1:1 basis to Chase airline and hotel partners. In some cases, the point values will exceed the standard rate.
        Hotel Credit You will receive an annual credit for hotel stays you book through Chase Ultimate Rewards.
        Travel Booking Flexibility Rest assured that you can book travel without blackout dates or restrictions through the Chase Ultimate Rewards portal.
        Lyft Benefits Earn high bonus points on Lyft rides through March 2025.

        The most valuable of these benefits are the travel insurance options, 25% travel redemption boost, and annual hotel credit. If you plan to book hotels through Chase Ultimate Rewards at least once per year, this card makes a lot of sense. If you don’t stay in a hotel at least once annually, there’s probably a better card out there for you. Refer to our alternatives shared above.

        Can I Transfer My Points to Other Loyalty Programs?

        You can transfer your points 1:1 to Chase’s partner loyalty programs. The partner program list includes:

        • Aer Lingus AerClub
        • Air Canada Aeroplan
        • Air France KLM Flying Blue
        • British Airways Executive Club
        • Emirates Skywards
        • Iberia Plus
        • IHG Rewards Club
        • JetBlue TrueBlue
        • Marriott Bonvoy
        • Singapore Airlines KrisFlyer
        • Southwest Rapid Rewards
        • United MileagePlus
        • Virgin Atlantic Flying Club
        • World of Hyatt

        Follow these steps to perform a points transfer:

        1. Log in to your Chase account: You can access your account through the Chase website or mobile app.
        2. Navigate to the Chase Ultimate Rewards Program section: Once you log in, go to the “Chase Ultimate Rewards Program” page.
        3. Select your card: Select your Chase Sapphire Preferred® Card if you own multiple Chase cards.
        4. Choose “Transfer to Travel Partners”: Find the option to transfer your points to Chase’s travel partners.
        5. Select a travel partner: We listed Chase’s partners above, but the roster is dynamic. Choose a partner to transfer points. You must be a member of the partner program, so have your membership details handy.
        6. Enter your loyalty program details: Supply your membership number and other required details for the loyalty program you selected.
        7. Specify the number of points to transfer: Enter how many points you want to move. You cannot reclaim points once you transfer them.
        8. Confirm the transfer: Review all the details carefully since you can’t undo the transfer once it’s complete.
        9. Complete the transfer: Click the button to confirm the transfer. Transfer times can vary from immediately to a few days, so make sure you give yourself enough lead time before your trip.

        Transferring points to a frequent flyer program provides a double reward. First, your program miles increase 1:1 by the number of points you move.

        Second, you collect additional frequent flyer miles when you book your flight, regardless of how you pay for it. The miles you earn depend on the flight distance, the fare class, and the airline’s specific travel rewards program. These miles are separate from the points you transferred.

        Is it Difficult to Get Approved?

        You must satisfy the requirements we laid about above to ensure the bank can accept your application. Chase does not publish all the details of its internal risk assessment strategy, but experts understand the general parameters.

        The most significant tripwires include a low credit score, a troubled credit history, insufficient income, unemployment, or a high debt-to-income ratio. Chase may also deny your application if you ever defaulted on one of its loans or credit cards.

        Even if you sail through the bank’s risk assessment, the unofficial 5/24 Rule can trigger rejection. Chase will likely decline your credit card application if you applied for five or more personal credit accounts (from any source, not just Chase) in the past 24 months.

        What is the Credit Limit?

        Chase assesses your overall creditworthiness and income to assign you a credit limit. The Chase Sapphire Preferred® Card is a Visa Signature card that automatically provides a minimum credit limit of $5,000. If you can’t qualify for at least that amount, you aren’t eligible for the card.

        How Does it Compare to the Chase Sapphire Reserve®?

        The Chase Sapphire Reserve® is an expensive yet popular choice for lucrative Chase Ultimate Rewards points and abundant benefits (including an annual travel credit and airport lounge access).

        Here’s how the Chase Sapphire Preferred® Card stacks up against its senior sibling:

        Feature: Chase Sapphire Preferred® Card Chase Sapphire Reserve®
        Annual Fee $95 $550
        Reward Points on Travel & Dining 2x points 3x points
        Reward Points on Other Purchases 1x point 1x point on all other purchases
        Reward Points on Travel Purchased through Ultimate Rewards 5x points 10x points
        Signup Bonus Varies (usually substantial) Varies (typically significant)
        Travel Credit None $300 annual travel credit
        Global Entry/TSA PreCheck Credit None Up to $100 every 4 years
        Airport Lounge Access None Priority Pass Select membership with access to more than 1,300 lounges worldwide
        Travel Insurance Yes Extensive
        Purchase Protection You receive coverage for new purchases against damage or theft for 120 days, up to $500 per claim and $50,000 per account. You receive coverage for new purchases against damage or theft for 120 days, up to $10,000 per claim and $50,000 per year.
        Foreign Transaction Fees None None
        Authorized User Fee $0 $75 per card
        Travel Accident Insurance Offers up to $500,000 per person for accidental death or dismemberment while traveling on a common carrier. Provides up to $1,000,000 per person for accidental death or dismemberment while traveling on a common carrier.
        Lost Luggage Reimbursement Yes, up to $3,000 per passenger Yes, up to $3,000 per passenger
        Trip Cancellation/Interruption Insurance Up to $10,000 per person and $20,000 per trip for prepaid non-refundable expenses Up to $10,000 per person and $20,000 per trip for prepaid non-refundable expenses
        Auto Rental Collision Damage Waiver Primary coverage, up to the actual cash value of the vehicle Primary coverage, up to $75,000
        Hotel Credit $50 annual hotel credit Varies (specific offers)
        Anniversary Credit 10% anniversary bonus on points earned None
        Extended Warranty Protection Extends US manufacturer’s warranty by an additional year on eligible warranties of three years or less Extends US manufacturer’s warranty by an additional year on eligible warranties of three years or less

        Many travelers are content to pay the Chase Sapphire Preferred® Card‘s smaller annual fee and forego some nifty benefits. Others want more and are willing to shell out big dough to get the Chase Sapphire Reserve®. Spoiler alert: There is no wrong decision.

        Main Takeaways

        The Chase Sapphire Preferred® Card remains one of our favorite travel cards. Its moderate annual fee enables it to offer an excellent catalog of benefits and generous rewards. Other cards charge considerably more to deliver similar (or fewer) perks.

        If you travel regularly or are planning a big trip, consider adding this card to your wallet. As we have shown, it provides excellent value.

        About the Author

        Eric Bank
        Eric Bank Finance Expert

        Eric Bank is an M.B.A. who has covered financial and business topics since 1985, appearing regularly on Credible, eHow, WiseBread, The Nest, Zacks, Chron, BadCredit.org and dozens of other outlets. Eric specializes in taking complex subject matters and explaining them in simple terms for consumer audiences, particularly in the world of personal finance. Eric holds a Master's in Business Administration from New York University and a Master's in Finance from DePaul University.

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