The Chase Sapphire Preferred® Card offers numerous perks for people who like to travel. These perks include travel protections, flexible point redemptions and up to $50 in statement credits to cover eligible hotel spending each year.
However, it’s fair to question whether the card is worth its $95 annual fee. Learn more about the Chase Sapphire Preferred Card’s key features, who can benefit from having this card and alternatives you should consider before applying.
[Read: Best Credit Cards.]
Pros and Cons
While this travel credit card features numerous perks, it pays to focus on the key benefits to help you decide if the Chase Sapphire Preferred Card is worth it.
Pros
— Generous sign-up bonus. You can earn a sign-up bonus of 60,000 points after spending $4,000 within three months. These points are worth $750 in travel booked through Chase Travel.
— Annual hotel benefit. You’ll receive up to $50 in statement credits each account anniversary year to cover hotels booked through Chase Travel.
— Up to five points per dollar. When you book travel through Chase Travel, you’ll earn five points per dollar (excluding hotel purchases that qualify for the $50 annual credit). The card also offers two points per dollar on other travel and three points per dollar on dining, online grocery purchases and select streaming services. All other purchases earn one point per dollar.
— More value on Chase Travel. When you use points to pay for travel through the portal, you’ll get 1.25 cents per point, which is 25% more value than you get redeeming for cash. For example, a $300 flight would cost 24,000 Chase Ultimate Rewards points.
— Access transfer partners. Ultimate Rewards points also transfer to 14 airline and hotel loyalty programs on a 1-to-1 basis. These partners include Air Canada Aeroplan, Emirates Skywards, Southwest Rapid Rewards, United MileagePlus, Marriott Bonvoy and World of Hyatt.
— Account anniversary bonus. When you renew your card, you’ll receive a points bonus worth 10% of your annual purchases. If you spent $24,000 during the year, Chase will give you 2,400 bonus points on top of the rewards earned throughout the year.
— Travel protections. When you book travel with your Chase Sapphire Preferred Card, you’ll be covered with trip cancellation and interruption insurance, primary rental car protection, baggage delay insurance and trip delay reimbursement.
“Earning transferrable points is the best benefit because it allows for flexibility in an ever-changing miles and points environment,” says John Perri, a travel advisor and travel blogger at JohnTheWanderer.com.
Cons
— Annual fee. Every year you hold this card, you’ll have to pay a $95 annual fee. While there are numerous ways to get value beyond $95 each year, you must take advantage of rewards and benefits to do so.
— Above-average annual percentage rate. There’s no 0% introductory rate on purchases or balance transfers, and this card has an above-average APR. If you carry a balance, your interest charges will easily outweigh the value of rewards and benefits.
— No rewarding everyday purchases. Spending categories such as in-store grocery purchases and gas only earn one point per dollar. And you’ll have to book travel through Chase to earn five points per dollar.
— Strict qualifying requirements. If you’re new to credit or have credit challenges, you’re not likely to get approved for this card.
— Best rewards require travel. You can get cash back and other redemption options, but traveling is the best way to get the most value out of rewards earned with the Chase Sapphire Preferred Card.
“You have to want to travel,” says Spencer Howard, founder of points travel site Straight To The Points. “If you’re not interested in traveling, the card isn’t worth it. If that’s not a priority, then a 2% cash back card works better.”
[Read: Best Travel Rewards Credit Cards.]
Who Should Get the Chase Sapphire Preferred Card?
The Chase Sapphire Preferred Card can be a good fit if you:
— Travel at least a few times each year
— Want to offset trip costs with a large sign-up bonus
— Are comfortable booking travel through the Chase Travel portal
— Want to transfer points to travel partners
— Spend significantly on travel and dining
— Want flexibility in redeeming rewards
— Want travel insurance, purchase protection and no foreign transaction fees
— Will earn enough rewards or use enough benefits to offset the $95 annual fee
[Read: Best Cash Back Credit Cards.]
Alternatives to the Chase Sapphire Preferred Card
The Chase Sapphire Preferred Card is an excellent choice for some travelers, but it isn’t the best travel credit card for everyone. Here are a few alternatives that may make more sense based on your budget, spending patterns and travel preferences.
Chase Sapphire Reserve
Chase Sapphire Reserve is the premium version of the Preferred card. While it has a $550 annual fee, it includes $1,200 in benefits from partners such as Lyft, DoorDash and Instacart. The card also comes with a $300 annual travel credit, complimentary airport lounge access and reimbursement for the Global Entry, TSA PreCheck or Nexus application fee once every four years. When compared with the Chase Sapphire Preferred Card, the Chase Sapphire Reserve has a much higher annual fee, but the rewards and benefits are greater, too.
“If you’re a road warrior and you can get reimbursed for expenses, get the Chase Sapphire Reserve to get lounge access and greater trip protections,” says Howard.
Chase Freedom Unlimited
For people who want to earn rewards without paying an annual fee, Chase Freedom Unlimited is a viable option. It earns 5% cash back on travel purchased through Chase, 3% cash back on dining and drugstores and 1.5% cash back on all other purchases. New customers can also use a 0% introductory annual percentage rate offer on purchases and balance transfers for 15 months, then a variable APR of 20.49% to 29.24%.
The Platinum Card® from American Express
The Platinum Card from American Express has a $695 annual fee to match its premium perks. New cardholders can earn 80,000 Membership Rewards points after spending $8,000 within six months. Cardholders can also get credits including $200 to cover eligible hotel expenses, $240 for eligible digital entertainment, $200 for Uber charges and $200 for airline fees.
Plus, you’ll earn five points per dollar on flights booked through American Express Travel or directly with the airlines, up to $500,000 spent each calendar year. You can also earn five points per dollar on prepaid hotels booked through American Express Travel. All other purchases earn one point per dollar. Travel benefits include access to the participating airport lounges and the ability to transfer points to 21 airline and hotel partners. (See Rates & Fees)
Capital One Venture X Rewards Credit Card
For luxury travelers who want to save money, the Capital One Venture X Rewards Credit Card offers a lower annual fee than other premium travel credit cards. Its $395 annual fee is effectively offset by the $300 in credits to cover eligible travel each year and 10,000 bonus miles when you renew. The card includes a sign-up bonus of 75,000 miles after you spend $4,000 within three months of opening an account. Plus, it earns an unlimited 2 miles per dollar on everyday purchases and up to 10 miles per dollar when booking travel through Capital One Travel. Cardholders also receive complimentary entrance to participating airport lounges. (See Rates & Fees)
Is the Chase Sapphire Preferred Card Worth It?
The Chase Sapphire Preferred Card offers many valuable features and benefits, but when is it worth paying the $95 annual fee? If you travel on a regular basis, its protections provide valuable peace of mind. Just the savings from not paying separately for a collision damage waiver when you rent a car can recoup the annual fee.
If you book travel through Chase, you will also find this card worth its annual fee. Not only can you earn five points per dollar on most of those purchases, but you’ll also receive 25% more value from your points when using them to cover your reservations.
Earning the sign-up bonus can easily justify the annual fee. When you meet the spending requirements, you’ll earn points that can be worth more than $600. That initial sign-up bonus can cover the expense of the annual fee for multiple years.
“Look at the points you’re earning in a given year,” says Howard. “If that’s worth more than the $95 annual fee, then that’s easy.”
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Is the Chase Sapphire Preferred Card Worth its $95 Annual Fee? originally appeared on usnews.com
Update 06/27/24: This story was previously published at an earlier date and has been updated with new information.
