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The Chase Sapphire Preferred is one of our favorite starter credit cards for its perks.
Its big welcome bonus, excellent perks, and reasonably priced annual fee make it a pretty attractive choice for both newbie and experienced credit card enthusiasts.
Not to mention, the Chase Sapphire Preferred allows you to transfer your points to other loyalty programs, like Singapore Airlines KrisFlyer or Marriot Bonvoy, at a 1:1 ratio. This means that you’ll have more flexibility and get more value when you redeem your Chase Ultimate Rewards points.
Chase Sapphire Preferred Basic Features
The welcome bonus on this card is quite lucrative. You can get 80,000 bonus points once you spend a total of $4,000 within three months of getting your card. Hitting that spending threshold is a must because 80,000 points are worth $1000 when redeemed as travel rewards on Chase Ultimate Rewards. Cardholders will also get a $50 annual Ultimate Rewards Hotel Credit.
Earn 80,000 bonus points after you spend $4,000 on purchases in the first 3 months from account opening. That’s $1,000 when you redeem through Chase Ultimate Rewards(R).
At A Glance:
Earn 5X points on travel purchased through Chase Ultimate Rewards & get a welcome bonus of 80,000 Chase points.
For the points earning rates, cardholders will get:
- 5X points on travel purchased through Chase Ultimate Rewards(R)
- 3X points on dining (including eligible delivery services)
- 3x points on online grocery purchases (excluding Target and Walmart, and wholesale clubs)
- 3x points on streaming services
- 2X points on all other travel purchases
- 1 point per dollar on all other purchases.
The annual fee is $95 which isn’t that expensive so it’s a great card for beginners who are new to credit cards, points, and miles. This fee is very easy to pay off if you’re using the card and redeeming your points correctly.
Chase Sapphire Preferred Perks And Benefits
The welcome bonus isn’t the main highlight of this card because the Chase Sapphire Preferred comes with valuable benefits for travelers. Let’s discuss each one.
1:1 Points Transfer
Chase points are worth 1.25 cents when you redeem travel rewards on Chase Ultimate Rewards, but since Chase points are transferable, you’re not just locked into the company’s loyalty program.
You can move your points to multiple transfer partners which gives you more options for rewards redemption.
The transfer ratio is 1:1 so there’s a chance that you’ll get a better value for your points if you choose to transfer them to other loyalty programs. For example, your 10,000 points may only be worth a one-night hotel stay on Chase Ultimate Rewards but is worth a round-trip flight on TrueBlue.
Here’s a complete list of transfer partners for Chase Sapphire Preferred cardholders.
Airline Travel Partners
- JetBlue TrueBlue
- Singapore Airlines KrisFlyer
- British Airways Executive Club
- Virgin Atlantic Flying Club
- Emirates Skywards
- Flying Blue AIR FRANCE KLM
- Iberia Plus
- Southwest Airlines Rapid Rewards
- Aer Lingus, AerClub
- United MileagePlus
Hotel Travel Partners
- IHG Rewards Club
- World of Hyatt
- Marriott Bonvoy
Car Rental Collision Damage Waiver
If you don’t use your car rental company’s collision insurance, you can use your credit card’s insurance to pay for theft or collision damage that happened within the U.S. or abroad. The card offers primary coverage so it automatically kicks to reimburse the incident up to the actual cash value.
Trip Cancellation/Interruption Insurance
For trips that are canceled because of bad weather, sickness, or other eligible situations, you have a $10,000 insurance per person and a $20,000 insurance per trip. The insurance covers travel expenses like hotel stays, airfare, and tours.
Trip Delay Reimbursement
You and your family members can get a reimbursement of up to $500 per ticket if your flights get delayed for more than 12 hours. The insurance will help cover hotel expenses, meals, and cab fares to lower down your travel costs.
Baggage Delay Insurance
You’ll get a reimbursement of up to $100 per day for 5 days if your baggage gets delayed for more than 6 hours. This helps you cover important personal expenses like clothing and toiletries.
Get a 120-day theft or damage insurance for your new purchases. The coverage gives you up to $5,000 per claim and $50,000 per account.
Extended Warranty Protection
Get a 1-year warranty extension if you make purchases from U.S. manufacturers that have eligible warranties of at most three years.
Travel and Emergency Assistance
You can get assistance for legal or medical emergencies during your travels as long as you will cover the costs incurred.
24/7 Access To Customer Service
Get 24/7 access to Chase’s customer service wherever you are in the world. This feature makes the card a great travel companion especially if you’re traveling abroad.
Aside from the 2 points per $1 that you’ll earn from travel and dining purchases, you’ll earn an additional 5 points per $1 on Lyft rides up until March 2022.
You’ll also get free delivery and lower service fees from DoorDash if your orders are over $12 for a minimum of one year.
Other Chase cards will also get additional points earnings or cashback on Lyft purchases. The Chase Sapphire Reserve will earn 10 points per $1 while the Chase Freedom, Chase Freedom Unlimited, and Chase Freedom Student earns 5% cashback.
No foreign transaction fees
The Chase Sapphire Preferred is a no-foreign-fee card so you can splurge all you want when traveling abroad. Most credit cards come with a 3% foreign transaction fee if you make purchases outside the United States. Let’s say you spend $2,000 on dining in Greece, that’s about $60 in fees which can slowly add up in the long run. With the Chase Sapphire Preferred, you can spend as much as you want without having to pay these costly fees.
Drawback Of The Chase Sapphire Preferred
Getting the Chase Sapphire Preferred is a no-brainer because it’s an all-around card that covers multiple consumer pain points.
However, the term “all-around” can have a negative connotation because the card might be trying to devalue its perks to evenly distribute it across different categories.
Basically, it’s not a cheap card nor a luxurious card – it’s just a mediocre card. Here are some of the reasons why you may want another card.
No Premium Perks
The card is perfect for travelers in general, however, it doesn’t really satisfy travelers who love premium perks and want to travel in style.
You might want other cards like the Chase Sapphire Reserve Card or Business Platinum Card from American Express. Sure, the cards do have expensive annual fees which are $550 and $595 respectively but the perks are also worth it. Annual fees for the Amex Platinum are $695 if you apply on or after 01/13/2022.
For example, both cards have Global Entry and TSA-Precheck statement credits. This allows you to pass through special security lanes so you can avoid the long lines and huge crowds at regular lanes.
You’ll also get airport lounge access which allows you to take a break during long-haul flights. These lounges have free WIFI, drinks, snacks, and sometimes places to sleep.
Low Rewards Rate
The card lets you earn 5 points per $1 on Lyft purchases but it’s not an area where consumers really spend their money on.
Meanwhile, the 2 points per $1 on travel and dining are pretty decent but other cards can offer the same rate or even more without the annual fee.
A good example is the ABOC Platinum Rewards Mastercard credit card. It’s a cashback card that lets you earn 5x points on rotating categories which include travel, groceries, home improvement, and automotive purchases. It has no annual fee.
There’s also the Discover It Miles which lets you earn unlimited 1.5x miles on all purchases, and it doesn’t have annual fees too. Sure, the rate is lower but you don’t have to worry about maximizing the use of your card to offset any annual fee.
- Earning points isn’t complicated
- Low spending needed to earn the 0,8000 bonus points
- Has lots of transfer partners.
- 1:1 points transfer ratio
- The 2 points per $1 rate is low compared to other cards
Who’s this card good for?
Essentially, the Chase Sapphire Preferred is perfect for everyone. We can’t really think of a reason why travelers or frequent flyers wouldn’t want to have it.
The card’s $95 annual fee isn’t really that pricey, given the fact that it offers perks that can cover the price of the fee. You also don’t have to stick to one loyalty program so you can really maximize your points by redeeming rewards from other loyalty programs.
Add the 1:1 transfer ratio to the mix and this makes the card even more valuable for consumers.
Unless you want premium benefits, then this card might not be for you. You’re better off with premium credit cards like the Chase Sapphire Reserve or Amex Business Platinum. If you’re still having a hard time figuring out credit cards, transfer partners, and award redemptions, you can sign up for our travel concierge and get unlimited consultation and assistance for one year.
Bonus Tip: How To Use The Chase Sapphire Preferred
Since you have the ability to transfer your points across multiple Chase cards, the Chase Sapphire Preferred makes a good complementary card for the purpose of redeeming rewards.
For example, you can get the Chase Freedom Unlimited which earns 5% on travel purchased through Chase, 3% back on dining and drugstores and 1.5% on all other purchases which are solid rates for a cashback card.
After that, you can now transfer your points to your Chase Sapphire Preferred which has the feature of transferring points to other loyalty programs. And because of the 1:1 ratio, you now have more redemption options which allow you really maximize the points you’ve earned.