Chase Sapphire Preferred Credit Card

The Chase Sapphire Preferred credit card is a middle-of-the-road rewards card, no matter how you look at it.

With a $95 annual fee, you would expect a bit more than a lacklustre rewards earn rate, a handful of complimentary insurance coverages, and a 0% foreign transaction fee – but that's more or less what this card has going for it.

Except the welcome bonus, of course, which is currently a staggering 80,000 bonus points. Redeemed for travel, that welcome bonus alone is worth $1,000.

Let's take a closer look at this Chase credit card.

• 7 Chase Sapphire Preferred benefits
• 6 Chase Sapphire Preferred drawbacks
• Chase Sapphire Preferred vs. Chase Sapphire Reserve
• Chase Ultimate Rewards points
• Alternatives to Chase Sapphire Preferred
• FAQ

7 Chase Sapphire Preferred benefits

The Chase Sapphire Preferred Visa has a number of things going for it.

1. 80,000 point welcome bonus

Chase boosted the welcome bonus for this card to a staggering 80,000 points. Redeemed through Chase Ultimate Rewards, this is worth an estimated $1,000 in travel.

There are few other welcome bonuses that are this valuable, so if you can manage the minimum spend of $4,000 in the first 3 months you have the card, it might make this card worth it alone.

To put things into perspective, here's how this welcome bonus looks when compared to credit cards with similar earn rates:

2. 2x points on travel and dining, including takeout and delivery

For most purchases, you'll earn 1 rewards point for every $1 you spend, but that doubles for travel and dining purchases, which includes takeout and delivery.

3. 25% more value when you redeem for travel

When you use your points through Chase Ultimate Rewards, you get 25% more value when you redeem them for:

• airfare,
• hotels,
• car rentals, and
• cruises.

It's a good way to save some extra money when booking your next vacation or road trip.

4. Transfer points to other programs at 1:1 value

If you collect travel rewards through a frequent travel program, you may be able to transfer your credit card rewards over.

Airline travel partners include:

• Aer Lingus, AerClub
• British Airways Executive Club
• Emirates Skywards
• Flying Blue AIR FRANCE KLM
• Iberia Plus
• JetBlue TrueBlue
• Singapore Airlines KrisFlyer
• Southwest Airlines Rapid Rewards
• United MileagePlus
• Virgin Atlantic Flying Club

Hotel travel partners include:

• IHG Rewards Club
• Marriott Bonvoy
• World of Hyatt

5. 7 types of complimentary insurance included

The Chase Sapphire Preferred Visa also comes with 7 types of complimentary insurance coverage, including:

This is a reasonably good collection of travel insurance and purchase protection that will give you added peace of mind in case of unexpected events.

6. No foreign transaction fees

With the Chase Sapphire Preferred Visa, you'll also save the normal 3% fee many credit cards charge for purchases made in foreign currencies.

This just adds to the value of this credit card for travel, or even for online purchases in other currencies.

7. Lyft and DoorDash partner benefits

You'll earn 5x points on Lyft rides through March 2022, which is an additional 3x points on top of the 2x points already earned for travel.

And, with a DashPass subscription, you'll get unlimited DoorDash deliveries with a $0 delivery fee and reduced service fees for orders over $12. These discounts will apply for at least 1 year, if you activate by December 31, 2021.

6 Chase Sapphire Preferred drawbacks

In the end, however, all credit cards have their drawbacks, and the Chase Sapphire Preferred Visa is no different.

1. Welcome bonus comes with relatively high spend requirement

While the 80,000 point welcome bonus is generous, it also comes with a relatively high spend requirement. To earn the bonus, you have to spend at least $4,000 on the card in the first 3 months you have it.

If you don't normally spend that much on your credit card in 3 months, this can be a bit of a problem.

2. Rewards are less valuable if you don't use them for travel

If 80,000 points are worth $1,000 when redeemed for travel through Chase Ultimate Rewards (which includes a 25% bonus), then each point is worth:

• 1.25 cents per point when redeemed for travel,
• 1.25 cents per point when redeemed for eligible purchases though Chase Pay Yourself Back, or
• 1 cent per point when redeemed for gift cards or other statement credits.

To maximize your rewards value, your best bet is to transfer them to one of the higher value travel partner reward programs.

But if you don't travel that much, there's probably a better credit card out there for you.

3. Lacklustre earn rate, even for the bonus categories

The earn rate of 2 points for every $1 spent on travel and dining, or 1 point for every $1 spent on everything else isn't that great when compared to other credit cards on the market.

Given that the value of each point ranges between 1 and 1.25 cents per point, you're getting a mere 1% - 1.25% back on most of your spending, and 2% - 2.5% on travel and dining purchases.

There are credit cards with significantly better earn rates, that might be better for your wallet. Here are some examples:

We've estimated the average rate of return based on a hypothetical spend of $2,000 across a number of categories. As you can see here, the Chase Sapphire Preferred falls well behind some other options with similar annual fees. And the Citi Double Cash Card has no annual fee at all.

4. Relatively high annual fee for a middling credit card

Given that this is an average credit card, the $95 annual fee is pretty high for what you're actually getting. To make that back in rewards, for example, at 1% return, you'd have to spend $9,500 just to earn enough to justify the annual fee.

Obviously, the high welcome bonus offsets this a bit, but there are no fee credit cards with better earn rates that will be more valuable to you over the long term.

5. Average to high interest rates, depending on your creditworthiness

The interest rates on this credit card vary according to the prime rate, but are currently:

• Purchase: 15.99% - 22.99%
• Balance transfer: 15.99% - 22.99%
• Cash advance: 24.99%

If you have excellent credit, you'll likely pay closer to the 15.99% rate, but if your credit is a bit sketchy, you're going to pay a higher rate.

On top of that, there are additional fees for balance transfers and cash advances:

• Balance transfer: Either $5 or 5% of the amount of each transfer, whichever is greater
• Cash advance: Either $10 or 5% of the amount of each transaction, whichever is greater

If you tend to carry a balance on your credit card, you would be far better off with a lower interest rate card.

6. Few other perks and benefits

Some other credit cards, such as the Chase Sapphire Reserve, come with a suite of additional perks and benefits including airport lounge access and 24/7 concierge service. They will often have higher annual fees, of course, but also usually have a better earn rate.

The Chase Sapphire Preferred Visa doesn't have a whole lot else to offer, in comparison.

Chase Sapphire Preferred vs. Chase Sapphire Reserve

Interested in a more fully-featured travel credit card that has a better earn rate for Chase Ultimate Rewards? The Chase Sapphire Reserve Visa might be for you.

Credit card feature	Chase Sapphire Preferred Visa Signature	Chase Sapphire Reserve Visa Infinite
Annual fee	$95	$550
Extra card fee	$0	$75
Welcome bonus	Earn 80,000 bonus points after you spent $4,000 on purchases in the first 3 months	Earn 50,000 bonus points when you spend $4,000 on purchases in the first 3 months
Rewards earn rate	* 2 points for every $1 spent on travel and restaurants * 1 point for every other $1 spent	* 3 points for every $1 spent on travel (after you earn your $300 annual travel credit) * 3 points for every $1 spent on dining * 1 point for every other $1 spent
Interest rates	* Purchase: 15.99% * Cash advance: 24.99% * Balance transfer: 15.99%	* Purchase: 16.99% * Cash advance: 24.99% * Balance transfer: 16.99%
Insurance coverages	7 types	9 types
Foreign transaction fee	0%	0%
Special features	* 25% more value for points when you redeem for travel through Chase Ultimate Rewards * 1:1 value when you transfer your points to select airline and hotel loyalty programs * Lyft and DoorDash partner benefits	* Unlimited airport lounge access * Automatically receive up to $300 in travel statement credits on your account anniversary * $100 rebate on Global Entry or TSA precheck every 4 years * 50% more value for points when you redeem for travel through Chase Ultimate Rewards * 1:1 value when you transfer your points to select airline and hotel loyalty programs * Lyft and DoorDash partner benefits * Special benefits at top hotels and resorts worldwide * Complimentary concierge service
Interested?	Apply now	Apply now

Chase Ultimate Rewards points

So, what can you do with Chase Ultimate Rewards?

How to earn Chase Ultimate Rewards

You can only earn Chase Ultimate Rewards with select Chase credit cards, including:

• ,
• ,
• , and
• , among others.

How to redeem Chase Ultimate Rewards

There are a limited number of ways to redeem Chase Ultimate Rewards.

Transfer to travel partners, including those we mentioned above. Note that all transfer ratios are 1:1, and you must transfer in increments of 1,000 points.

Book travel, including flights, hotels, rental cars, and experiences through the Chase Ultimate Rewards Travel Portal.

Redeem for gift cards or statement credits. While redeeming points for travel is the best way to maximize their value, you can also redeem them for gift cards or statement credits.

Do Chase Ultimate Reward points expire?

Your points will not expire as long as your account is open. There are a few circumstances in which you can lose your points, however, including program misuse, fraudulent activities, and failure to pay, among other things.

Read the Chase Ultimate Rewards terms of service if you want to be certain of all the details and requirements.

Alternatives to Chase Sapphire Preferred

Let's take a look at some alternatives to the Chase Sapphire Preferred Visa card.

Credit card feature	Chase Sapphire Preferred	Blue Cash Preferred Card from American Express	Hilton Honors American Express Surpass Card	Citi Double Cash Card
Annual fee	$95	$95, first year free	$95	$0
Extra card fee	$0	$0	$0	$0
Welcome bonus	Earn 80,000 points after spending $4,000 in your first 3 months ($1,000 value when redeemed for travel)	$250 statement credit when you spend $1,000 in your first 3 months	Earn 130,000 Hilton Honors bonus points when you spend $2,000 in your first 3 months	None
Rewards earn rate	* 2x points on travel and dining purchases * 1 point per $1 spent on all other purchases	* Earn 6% cash back on groceries (up to $6,000 spent) * Earn 6% cash back on select streaming services * Earn 3% cash back on gas and transit purchases * Earn 1% cash back on all other purchases	* Earn 12 points for every $1 spent at participating Hilton hotel or resort properties * Earn 6 points for every $1 spent at restaurants, gas stations, and supermarkets * Earn 3 points for every other $1 spent	* Earn 1% cash back on all spending * Earn an additional 1% cash back when you pay your bill on time
Interest rates	* Purchase: 15.99% * Balance transfer: 15.99% * Cash advance: 24.99%	* Purchase: 13.99% * Balance transfer: 13.99% * Cash advance: 25.24%	* Purchase: 15.74% * Balance transfer: 15.74% * Cash advance: 25.24%	* Purchase: 13.99% * Balance transfer: 13.99% * Cash advance: 25.24%
Insurance coverages	7 types	4 types	5 types	2 types
Foreign transaction fee	0%	2.7%	0%	3%
Special features	* 25% more value for points when you redeem for travel through Chase Ultimate Rewards * 1:1 value when you transfer your points to select airline and hotel loyalty programs * Lyft and DoorDash partner benefits	* 0% APR on purchases for the first 12 months * Access to American Express ticket presales	* Earn a free Weekend Night Reward when you spend $15,000 on your card in a calendar year * Automatic Hilton Honors Gold status, and upgrade to Diamond status when you spend $40K annually * Priority Pass Select membership, including 10 free lounge visits every year * Exclusive member-only events and access to ticket presales	* 0% APR on balance transfers for 18 months * Access to Citi Private Pass – special access to concerts, events, dining experiences and more * No limits on the amount of cash back you can earn
Interested?	Apply now	Apply now	Apply now	Apply now

Bottom line

All in all, the Chase Sapphire Preferred Visa isn't a bad credit card, it's just not a great credit card. For that annual fee (or less), you can get a better rewards earn rate and more perks and benefits besides.

If you're big on collecting welcome bonuses, this card might be worth a second look, but for long-term day-to-day spending, there's probably a better credit card for your wallet.

FAQ

Is the Chase Sapphire Preferred card worth it?

If you're interested in maximizing your credit card welcome bonuses, the Chase Sapphire Preferred is probably worth a look, with the ability to earn 80,000 bonus points after spending $4,000 in the first 3 months you have the card. After that, however, this card doesn't have a whole lot going for it, so there may be another card better suited to your everyday spending, especially if you're not traveling a lot.

How do I upgrade Chase Sapphire Preferred to Reserve?

If you have a Chase Sapphire Preferred Visa but would like to take advantage of the Chase Sapphire Reserve's premium perks and benefits, you can ask to have your card upgraded by calling the phone number on the back. Keep in mind, however, that the Chase Sapphire Reserve has an exceptionally high annual fee of $550, so be sure you can make full use of those perks before you make the switch.

Does Chase Sapphire Preferred have roadside assistance?

The Chase Sapphire Preferred Visa does not come with complimentary roadside assistance. You can read more about what this credit card offers here.