Chase Sapphire Preferred®: An Introduction and Overview
Some of the card links and products that appear on this website are from companies which Tech Mentor Maria may receive compensation when you click on links to those products.Terms apply to the offers listed on this page. See our Ad Disclosure at the end of the post
In the complex world of credit cards, it can be challenging to navigate through numerous options and select the one that fits your lifestyle best. If you're someone who values flexible rewards and appreciates travel benefits, one card you may want to consider is the Chase Sapphire Preferred® Card. Renowned for its lucrative point system and robust travel perks, this card has consistently ranked as a favorite among frequent travelers and dining enthusiasts. In this blog post, we will dive deep into the features, benefits, and potential drawbacks of the Chase Sapphire Preferred® Card, providing an all-encompassing overview to help you determine if it's the right fit for your wallet.
Learn more about the Chase Sapphire Preferred Card here.
Table Of Contents
Features of the Chase Sapphire Preferred® Card
Earn Rate
Dining & Travel Purchases: For every dollar you spend on dining out and travel expenses worldwide, you earn 2 points. This includes expenses on airfare, hotels, dining at restaurants, and even ordering from eligible delivery services.
All Other Purchases: For expenditures outside of dining and travel, you still gain reward points. Specifically, you earn 1 point for every dollar spent. This covers all other categories, from groceries and gas to online shopping and monthly bills.
Earn Bonus Points with Chase's Shopping Portal: By using the Chase Ultimate Rewards shopping portal, you can earn additional points on your purchases. For example, if you shop at Sephora through the Chase portal, you could earn a whopping 10X points per dollar spent. This online portal partners with hundreds of retailers, and the bonus points you earn are over and above the standard rate. Although the exact bonus varies by retailer, this feature can significantly multiply your points earnings, enabling you to maximize your rewards.
Signup Bonus and Requirements
A key advantage of the Chase Sapphire Preferred® Card is its generous signup bonus. New cardholders have the opportunity to earn 60,000 bonus points, but it requires spending $4,000 on purchases within the first three months from account opening. The value of these bonus points is significant - when redeemed through Chase Ultimate Rewards, these 60,000 points equate to $750.
Other Bonuses
In addition to the earn rate and signup bonus, the Chase Sapphire Preferred® Card offers extra bonuses that enhance the value of your rewards. For instance, when you redeem your accumulated points for travel through Chase Ultimate Rewards, you receive a 25% bonus in value. This means your points are worth 1.25 cents each, compared to the standard 1 cent per point, providing you with more bang for your buck when it comes to reward redemption.
Combine Points with Chase Freedom
Another beneficial feature of the Chase ecosystem is the ability to combine points across different Chase cards. If you also own a Chase Freedom or Freedom Flex card, you can merge the points you've earned from these cards with your Sapphire Preferred points. This gives you greater flexibility and potential for maximizing your rewards. Particularly, since the Freedom cards offer 5% cash back (or 5X points) on rotating categories, you can strategically use these cards to earn points in those categories, and then transfer them to your Sapphire Preferred account to take advantage of the 25% bonus when redeemed for travel through the Chase Ultimate Rewards portal.
Detailed Overview of the Card’s Benefits
No Foreign Transaction Fees
A major plus for international travelers is that the Chase Sapphire Preferred® Card does not charge foreign transaction fees. This means you can use your card abroad without incurring additional charges, which are typically around 3% with other cards. This feature can result in significant savings if you often travel internationally or make purchases from foreign websites.
Travel Protections
The Chase Sapphire Preferred® Card offers a suite of travel protection benefits that could save you a great deal of hassle and money when unexpected situations occur. It includes trip cancellation/interruption insurance, which covers non-refundable expenses if your trip is cut short or cancelled due to certain situations like illness or severe weather. In addition, it offers an auto rental collision damage waiver, which covers theft and collision damage for most rental cars, eliminating the need for the rental company's insurance.
Dining Benefits and Partnerships
Along with earning 2X points on dining worldwide, the Chase Sapphire Preferred® Card comes with unique dining benefits and partnerships. For example, through partnerships with platforms like DoorDash and Grubhub, cardholders can often find exclusive deals or earn additional points for purchases made through these services.
$95 Annual Fee and Its Justification
The Chase Sapphire Preferred® Card comes with an annual fee of $95. Although this may seem high compared to no-annual-fee cards, it's important to consider the value of benefits and rewards you're receiving. For frequent travelers and diners, the 2X points on dining and travel purchases, the generous signup bonus, and the lack of foreign transaction fees, among other benefits, can easily offset the annual fee. Moreover, the bonus value you get when redeeming points through Chase Ultimate Rewards can also contribute significantly towards justifying this annual fee. As always, whether this fee is worth it will depend on your spending habits and how you utilize the card's features.
How Chase Sapphire Preferred® Compares to Other Cards
Comparison with Other Travel Reward Cards
When put side-by-side with other travel reward cards, the Chase Sapphire Preferred® stands out in several ways. Its competitive earn rates of 2X points on dining and travel purchases worldwide and 1X points on all other purchases, coupled with the generous signup bonus, make it a robust option. Plus, the absence of foreign transaction fees and the comprehensive travel protection benefits add extra value, particularly for frequent travelers. However, it's worth noting that some other travel reward cards may offer higher earn rates on certain categories, or other perks such as free airport lounge access, so it's essential to consider what features matter most to you.
Comparison with Chase Sapphire Reserve®
Comparing the Chase Sapphire Preferred® with its sibling card, the Chase Sapphire Reserve®, there are key differences to consider. The Reserve offers a higher earn rate of 3X points on travel immediately after earning your $300 travel credit and dining purchases, and it provides additional benefits like complimentary access to over 1,000 airport lounges worldwide through Priority Pass Select. However, these added perks come at a cost — the Reserve has a hefty annual fee of $550. In contrast, the Preferred's lower annual fee of $95 makes it a more affordable option, especially for those who may not travel frequently enough to make full use of the Reserve's additional benefits. In essence, while the Reserve may offer higher rewards and more luxury travel perks, the Preferred can offer better value for money for many cardholders.
Should YOU get this card?
Who Would Benefit Most from This Card
The Chase Sapphire Preferred® Card is ideally suited to frequent travelers and those who often dine out. The 2X points on travel and dining purchases can accumulate rewards rapidly for these individuals, resulting in substantial savings over time. Additionally, the absence of foreign transaction fees makes it an excellent choice for international travelers. However, even if you're not an avid traveler, if you value flexible rewards and occasionally indulge in travel or dining out, you can still find great value in this card.
Credit Score Requirements and Financial Considerations
Generally, to qualify for the Chase Sapphire Preferred® Card, you need a good to excellent credit score, typically in the range of 690 to 850. However, Chase will also consider other factors such as your income and existing debts. Financially, it's essential to consider whether you can take full advantage of the card's rewards to offset the annual fee of $95. To maximize the signup bonus, you should also be prepared to spend $4,000 within the first three months of opening the account. As always, it's important to manage your credit responsibly and ensure you can pay off your balance in full each month to avoid interest charges.
How to Maximize the Benefits of Chase Sapphire Preferred®
Best Practices for Point Accumulation
Maximizing the benefits of the Chase Sapphire Preferred® Card hinges on strategic point accumulation. Here are some strategies:
Leverage Bonus Categories: Make the most of the 2X points on dining and travel by using your card for all your restaurant, takeout, and travel-related expenses.
Use the Chase Shopping Portal: Regularly check the Chase Ultimate Rewards shopping portal for opportunities to earn extra points on purchases with partnered retailers, such as the 10X points per dollar spent at Sephora.
Combine Points from Other Chase Cards: If you have other Chase cards like the Chase Freedom Unlimited® or Chase Freedom Flex℠, use them in their respective high-earning categories (like the rotating 5% cash back categories) and transfer the points to your Chase Sapphire Preferred® Card.
Best Ways to Redeem Points for Maximum Value
How you redeem your points can greatly influence their value. Here are some tips:
Redeem for Travel through Chase Ultimate Rewards: When you redeem your points for travel through Chase Ultimate Rewards, they're worth 1.25 cents each — a 25% boost in value compared to other redemption options.
Transfer Points to Airline and Hotel Partners: Chase has several travel partners, and in some instances, transferring your points to these partners can yield a higher value, especially for premium flight seats or hotel stays.
Consider the Pay Yourself Back Feature: This feature allows you to erase purchases in certain categories with points at the same 1.25 cents-per-point rate as travel redemptions. Categories can change but have included groceries and home improvement stores in the past. This is a good option if you're not planning on traveling in the near future.
Conclusion
As we reach the end of this comprehensive review, it's clear that the Chase Sapphire Preferred® Card offers a multitude of benefits, especially for those who travel frequently or dine out often. From its competitive earn rates of 2X points on dining and travel, no foreign transaction fees, to robust travel protection benefits, and the flexibility to transfer points between Chase cards, it offers great value that can easily justify its annual fee. Moreover, the opportunities to enhance your rewards, either by shopping through the Chase portal or redeeming points for travel through Chase Ultimate Rewards, further add to its appeal.
Personally, I'm a fan of the Chase Sapphire Preferred® Card, particularly as a beginner card for those starting their journey into travel rewards. Its mix of generous rewards, practical benefits, and relatively low annual fee makes it an excellent entry point. However, if you're someone who travels extensively, you might want to consider its sibling, the Chase Sapphire Reserve®. While it comes with a heftier annual fee, the perks like higher rewards rates, complimentary airport lounge access, and a $300 annual travel credit may prove more beneficial.
Remember, credit cards aren't a one-size-fits-all solution. What works best for one person might not be the best for another. Therefore, I encourage you to weigh the pros and cons based on your specific needs, spending habits, and lifestyle before applying. The key is to ensure that you're making the most out of every dollar spent and every reward point earned. Happy travels and rewarding spending!
“Whatever it is, the way you tell your story online can make all the difference.”