Chase Sapphire Preferred Overview
People frequently inquire about the ideal credit card to begin their journey into reward travel. Invariably, my top suggestion for those new to the world of reward credit cards is the Chase Sapphire Preferred.
This card stands out for its ability to accumulate one of the most valuable reward currencies, coupled with a modest annual fee, enticing perks, and its effectiveness in enhancing your credit score, making it one of the premier choices for beginners in the realm of reward credit cards.
Who is this card designed for?
The Chase Sapphire Preferred caters to both frequent and occasional travelers, making it an ideal choice for individuals at any level of travel experience. Its modest $95 annual fee positions it as an excellent option for beginners entering the world of travel rewards.
For those embarking on their exploration of reward travel cards, I suggest commencing the journey with Chase cards. Given that Chase incorporates a 5/24 rule in its approval process, opting for the Chase Sapphire Preferred is a strategic move, as it secures one of the five slots available for new card openings within a two-year span.
Welcome bonus
Chase periodically modifies the welcome bonus structure for the Chase Sapphire Preferred throughout the year. The minimum welcome bonus available is 60,000 points, attainable by spending $4,000 within the initial 90 days of opening the account. However, Chase frequently introduces an enhanced bonus of 80,000 points and has even presented a generous 100,000-point bonus in the past.
A 60,000-point welcome bonus provides considerable flexibility for your travel plans. When redeemed through Chase’s Travel Portal, it translates to a value of $750. Alternatively, by transferring the points to one of Chase’s travel partners, you can unlock a higher value of up to $1,200.
It is highly advisable to consider opening the Chase Sapphire Preferred when a heightened bonus is in effect.
Main benefits and perks
In addition to the sign-up bonus the card includes many valuable perks that far outweigh the annual fee.
$50 Annual Hotel Credit
Each calendar year when booking a hotel through the Chase Travel Portal you’ll receive a $50 statement credit.
10% Annual Points Bonus
Each year that you renew the card, pay the annual fee, you’ll receive a 10% point bonus. If you earn 50,000 points in the year you’ll receive an additional 5,000 for your account anniversary renewal.
Travel Protections
Due to the comprehensive protections that this card offers it makes it ideal for all travel bookings. Among them you’ll receive:
- Primary Rental Car Coverage
- Trip Delay Insurance
- Trip Cancelation Insurance
- Baggage Delay Insurance
- Lost Luggage Reimbursement
- Purchase Protections
You can learn more about the protections it offers and the benefits here.
How to earn points
The Chase Sapphire Preferred comes with great earning structure that’s easy to maximize. Here’s how you’ll earn points on the Sapphire Preferred:
- 5X points per dollar on travel booked through the Travel Portal
- 5X points per dollar spent on Lyft purchases
- 3X points per dollar spent on dining
- 3X points per dollar spent on select steaming services
- 3X points per dollar spent on online grocery purchases (excludes Walmart, Target, & Wholesale Clubs)
- 2X points per dollar spent on travel outside of the Travel Portal
- 1X points per dollar on all other purchases
Disney Aulani Resort Hawaii – Credit Joshua Comiskey
How to redeem points
When you’re prepared to cash in the points accumulated with the Chase Sapphire Preferred, you’ll grasp the reasons behind my strong endorsement. Explore the various ways you can utilize your earned points.
Chase Ultimate Rewards Travel Portal
Through Chase’s Travel Portal you could use your points to purchase airfare, reserve hotel rooms, and even book rental cars. All point purchases through the Travel Portal have a redemption value of 1.25 cents per point. That means you won’t have to worry about blackout dates, finding award space, or variable pricing. If there’s a seat available on a flight or hotel room that could be paid in cash you’ll be able to pay for it in points.
Transfer to Chase’s Travel Partners
It’s possible to earn a greater value from each point by transferring them to one of Chase’s airline or hotel partners. Some of their best partners include Hyatt, United, Air Canada, British Airways, and Singapore Airlines.
When transferring to one of these partners you can redeem your points for stays at luxurious hotels or business class plane seats.
Is the Chase Sapphire Preferred worth the annual fee?
The annual fee of the Chase Sapphire Preferred proves to be a worthwhile investment, especially for occasional travelers. With the inclusion of a $50 hotel credit, the annual cost of the card is effectively reduced to just $45. By successfully meeting the welcome bonus criteria, you stand to accumulate a minimum of $750 in travel-related purchases. Furthermore, the Primary Rental Car Insurance feature enables you to forgo insurance from the rental company, resulting in an average daily savings of $24.99.
Additionally, the Chase Sapphire Preferred offers the flexibility to convert cash-back rewards earned through the Chase Freedom Unlimited and Chase Freedom Flex into fully transferable Ultimate Rewards. This added benefit enhances the versatility of the card’s rewards program, providing users with more options for maximizing their benefits.
Final Thoughts
The Chase Sapphire Preferred stands out as one of the finest credit cards in the market. Regardless of your proficiency in managing points, its attractive earning rates and comprehensive travel protections outweigh the associated annual fee. Additionally, the ability to accumulate one of the most valuable reward currencies at such a reasonable annual cost solidifies its position among my top recommended cards.
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