Overview
Chase Sapphire Preferred is a staple in the travel credit card market, beloved by those who travel frequently and dine out often. With its 4.7/5 rating, it's particularly appealing due to its generous sign-up bonuses and effective reward structure. This card is designed for those who want to make the most out of their spending on travel and dining, converting points to valuable travel rewards.
In comparison to other reward credit cards, the Sapphire Preferred stands out in its flexibility and transfer options, especially to travel partners. This advantage gives cardholders the ability to earn up to 2x points on travel and 3x points on dining, which can be a massive return on spending when redeemed smartly. Its core value proposition is straightforward: earn rewards quickly when you spend where you love.
Despite its strengths, this card will not necessarily suit everyone, particularly those looking for lower fees or higher luxury perks. Competitors like the American Express Gold Card and Capital One Venture Rewards Credit Card offer robust benefits, albeit with different fee structures and reward focuses.
Fees and pricing
The annual fee for the Chase Sapphire Preferred is $95. While this is fairly standard among travel rewards cards, it is important for consumers to balance this fee against the potential rewards they could earn.
Here's a look at how its fees stack up against a couple of competitors:
| Fee Type | Chase Sapphire Preferred | Amex Gold Card | Capital One Venture |
|---|---|---|---|
| Annual Fee | $95 | $250 | $95 |
| Foreign Transaction Fee | None | None | None |
| Balance Transfer Fee | Either $5 or 5% | N/A | 3% |
Chase provides no foreign transaction fees, which is a significant benefit for international travelers. However, if you regularly shift balances, you'll find the balance transfer fee can add up quickly compared to cards without one.
There are no additional costs hidden in the Sapphire Preferred’s structure — what you see is essentially what you get. The $95 annual fee is straightforward without tiered options, and it's on par with similar cards.
Chase Sapphire Preferred makes every mile and meal rewarding, but its basic fee structure may not suit those looking for low-cost cards.
Rewards structure
The Chase Sapphire Preferred provides an impressive 3x points on dining and 2x points on travel purchases. This makes it particularly beneficial for cardholders who regularly find themselves dining out or booking flights and hotels. All other purchase categories yield 1 point per dollar.
There are no rotating categories to keep track of, which simplifies earning points and makes budgeting easier. Another bonus is that points are worth 25% more when redeemed through Chase Ultimate Rewards.
Cardholders can maximize their points on everyday purchases that complement the card’s strengths. However, for those who wish to earn on other categories like groceries, this card might not be the best fit.
Sign-up bonus
Chase Sapphire Preferred currently offers a sign-up bonus of 60,000 points after spending $4,000 in the first 3 months. Calculated at 1.25 cents per point, these points are worth about $750 towards travel when redeemed through Chase Ultimate Rewards.
This spend requirement aligns with standard offers in the travel reward credit card space, ensuring you aren’t spending more than you naturally would just to acquire the bonus. It's an excellent incentive for new cardholders.
DollarScout tip: Enroll in the card before a period of high travel or dining activity to naturally meet the sign-up bonus requirements. :::
Perks and benefits
Chase Sapphire Preferred includes a range of perks such as trip cancellation insurance, purchase protection, and extended warranty benefits. While it doesn't provide lounge access—reserved for higher tier cards like the Chase Sapphire Reserve—it still offers essential travel protections.
The card focuses on comprehensive user coverage rather than exclusive luxury, ideal for the pragmatic traveler.
Additional benefits include a complimentary DoorDash DashPass membership and travel protection, which covers trip cancellations and hotel stays. Although not as extensive as premium alternatives, these perks are valuable for travelers who occasionally face disruptions.
APR and fees
The ongoing APR is variable, ranging around 20.74%–27.74%, depending on creditworthiness. Though typical for the category, it's above average if you don't pay the full balance monthly, impacting those who carry balances.
There is a $95 annual fee and no fee for foreign transactions, making it an advantageous card for travelers looking to avoid additional charges overseas.
Watch out for high APR if you plan to carry a balance, as this could negate the benefit of accrued travel rewards. :::
Redemption options
Points can be redeemed via the Chase Ultimate Rewards portal, offering a 25% boost for travel redemptions. You can also transfer points to various travel partners, including United, Southwest, and Hyatt.
You're not limited to travel rewards. Points can also be turned into cashback at a rate of 1 cent per point, making this card multi-purpose if travel isn't your primary spend focus.
Chase is known for its flexible redemption options. The ability to transfer points to 10+ airlines and hotels widens the scope of travel possibilities beyond Chase's direct offerings.
Who should NOT use Chase Sapphire Preferred
The Chase Sapphire Preferred isn’t ideal for people who carry a balance or do not frequently spend on travel and dining. Its interest rates can be punishing, and the reward categories may not benefit everyday spenders like families focused on groceries and utility bills.
Citi Double Cash Card is a better alternative if you're looking for a straightforward cashback program without an annual fee. For those emphasizing grocery and fuel rewards, the Blue Cash Preferred Card from American Express provides richer rewards.
Those focused on luxury travel perks should consider the Chase Sapphire Reserve, despite a higher annual fee, for amenities like airport lounge access that the Preferred version lacks.
The bottom line
Chase Sapphire Preferred is best suited for frequent travelers and those whose spending aligns with rewards categories. For $95 annually, the card offers great value primarily in its travel category and dining rewards.
While it doesn't cater to luxury-focused clientele, its robust benefits, including the 60,000-point sign-up bonus, make it a serious contender among mid-tier travel cards. If maximizing travel rewards from spending on travel and dining is your goal, it's an unbeatable companion.
For prospective cardholders more interested in cashback or low-interest options, consider other cards like the Citi Double Cash. However, for comprehensive rewards on key spending areas at a reasonable cost, the Chase Sapphire Preferred is a robust choice.
