Chase Sapphire Preferred NerdWallet: A Comprehensive Review

The Chase Sapphire Preferred is a top-notch credit card that offers a wealth of benefits and rewards. With a 60,000-point bonus after spending $4,000 in the first 3 months, you'll be well on your way to earning travel rewards.

Here's what sets the Chase Sapphire Preferred apart: it offers 2X points on travel and dining purchases, plus a 25% points bonus when redeemed for travel through Chase Ultimate Rewards. You'll also get a $0 foreign transaction fee, making it a great choice for international travel.

One of the card's standout features is its travel insurance benefits, which include trip cancellation and interruption insurance, as well as travel delay insurance. This can provide peace of mind and financial protection for your trips.

The Chase Sapphire Preferred has no annual fee for the first year, and then it's $95. This is a relatively low fee compared to other premium credit cards, making it a great value for the benefits and rewards you'll receive.

For more insights, see: Platinum Travel Credit Card

The Chase Sapphire Preferred Card offers a range of benefits and features that make it a great choice for travelers.

One of the standout benefits is the welcome bonus, which earns you 60,000 bonus points after spending $4,000 on purchases in the first 3 months from account opening.

You'll also get an annual $50 statement credit for hotels booked through Chase, making it easier to plan your trips.

The card offers 5 points per dollar spent on travel booked through Chase and 2 points per dollar spent on all other travel purchases.

Additionally, you'll earn 3 points per dollar on online grocery purchases and 3 points per dollar spent on dining.

The Chase Sapphire Preferred Card also comes with trip cancellation and trip interruption insurance, which can be a lifesaver if your trip is cut short or canceled due to illness or severe weather.

Here are some of the key benefits of the Chase Sapphire Preferred Card:

No foreign transaction fees means you won't be charged extra for shopping outside the US, which can save you hundreds of dollars.

The card also offers a 10% anniversary bonus points, which can be a nice surprise at the end of the year.

With all these benefits and features, it's no wonder the Chase Sapphire Preferred Card is a popular choice among travelers.

Broaden your view: No Annual Fee Chase Sapphire

The Chase Sapphire Preferred card offers a generous sign-up bonus of 60,000 points after spending $4,000 in the first 3 months.

You can earn bonus points in various spending categories, including 5 points per $1 spent on travel booked through Chase, 3 points per $1 spent on dining, streaming services, and online grocery purchases, and 2 points per $1 spent on travel not booked through Chase.

The card's rewards structure can be a bit complicated, but it's worth noting that you can earn triple points on dining and streaming services, which is useful for frequent diners and streamers.

Travel-related purchases are particularly lucrative if you book through Chase's travel portal, where points are worth 1.25 cents each. You can also earn bonus rewards on expenses like parking garage fees, bus fares, and campgrounds.

The 10% anniversary bonus boost adds a significant value to your points earnings, effectively making the rewards rate slightly higher. For example, streaming services rewards have a rewards rate of 3.1%.

Additional reading: Chase Sapphire Preferred Dining Points

If you redeem your points for cash, they'll be worth 1 cent apiece, which is lower than the 1.25 cents per point you get when redeeming for travel through Chase.

Here's a breakdown of the rewards rates for different spending categories:

The Chase Sapphire Reserve card has a higher annual fee of $550, but it offers a rewards rate of 1.5 cents per point when redeemed for travel through Chase.

The Chase Sapphire Preferred card has a $95 annual fee, which may seem steep but can be worth it for the benefits it offers, like trip cancellation insurance and primary rental car coverage.

The card's rewards rate is 1x-5x, which means you can earn a higher rate for certain purchases, such as travel and dining.

One of the biggest benefits of this card is the lack of foreign transaction fees, which can save you 3-5% on international purchases.

Readers also liked: Benefits of Discover It Card

You can earn 60,000 bonus points after spending $4,000 on purchases in the first 3 months from account opening.

The ongoing APR for this card is a variable 20.74%-27.74%, which is relatively high and can add up quickly if you don't pay off your balance in full each month.

If you do need to carry a balance, be aware that the cash advance APR is 29.49%, and the penalty APR can go up to 29.99%.

To give you a better idea of the fees associated with this card, here are some of the key costs to consider:

You can redeem your Chase Sapphire Preferred points in various ways, but some options are better than others. Redeeming points for travel through Chase Travel℠ is a great choice, as it's worth 1.25 cents apiece when you combine your stash before booking.

Chase Sapphire Preferred cardholders can redeem Ultimate Rewards points for flights, hotels, rental cars, and more through the Chase Travel℠ portal at the 1.25-cent rate with no limits or blackout dates. This redemption system searches many airline and hotel brands, with a similar feel and layout to major discount travel websites.

You might enjoy: Tier 1 Credit Cards

You can also transfer your points to any of Chase's travel partners at a 1:1 rate, which can help you book hotel stays and airfare for less money. Some of Chase's transfer partners include United, British Airways, and Hyatt.

Here are some popular redemption options:

The $50 Hotel Credit is a great perk that can help offset the annual fee of the Chase Sapphire Preferred Card. You can use this credit immediately if you're a new cardholder.

This credit renews each year after your card renewal anniversary, so you can enjoy it year after year. The net cost of your $95 annual fee drops to just $45 every year.

To put this into perspective, that's like getting a $50 discount on your annual fee, making the card a more affordable option for travelers.

A different take: Chase Sapphire Preferred Waive Annual Fee

Redeeming your rewards is where the magic happens. You can redeem your Chase points through various methods, but some are better than others.

You can transfer your points from one Chase card to another, like from the Chase Freedom Flex to the Chase Sapphire Preferred. This can essentially double your rewards stash.

To get the most value out of your points, consider transferring them to one of Chase's 14 airline or hotel partners at a 1:1 ratio. This can help you book hotel stays and airfare for less money.

You can also redeem your points for travel through the Chase Travel portal, where they're worth 1.25 cents apiece for Chase Sapphire Preferred cardholders. This is a great way to book flights, hotels, rental cars, and more.

If you're looking for non-travel options, you can redeem your points for cash back, gift cards, or purchases at Apple, PayPal, or Amazon. However, be aware that redemptions for PayPal and Amazon are a terrible idea, as you'll lose 20% of the minimum point value.

Here are some non-travel redemption options and their point values:

The Chase Sapphire Preferred card also comes with a $50 annual hotel credit for stays booked through Chase Travel. This can be a great perk, especially if you're a frequent traveler.

To get approved for the Chase Sapphire Preferred, you'll need good to excellent credit, which is generally defined as a FICO score of 690 or higher.

Chase also considers your income, existing debts, and other information when making a decision.

If you're in line with Chase's 5/24 rule, you'll be more likely to get approved for the card.

The 5/24 rule means you can have had up to five new credit accounts opened in the past 24 months, but it's worth noting that this rule is subject to change.

The Chase Sapphire Preferred card isn't the only option for travelers. Depending on your spending and travel habits, one of these alternative credit cards could be a better fit for you.

The Capital One Venture Rewards Credit Card is a popular alternative, offering a rewards rate of 2-5 miles per dollar spent. This card also has a $95 annual fee, similar to the Sapphire Preferred.

If you're looking for a mid-tier travel credit card that earns American Express Membership rewards, the American Express Gold Card is worth considering. This card has an annual fee of $325, which is significantly higher than the Sapphire Preferred's $95 fee.

Check this out: Chase Sapphire Preferred Annual Fee

The Chase Sapphire Preferred Card is a popular choice among travelers, but it's not the only option. In fact, there are several alternatives to consider, depending on your spending and travel habits.

The Capital One Venture Rewards Credit Card is one such alternative, offering a similar rewards structure and a lower annual fee of $95.

The Chase Sapphire Reserve Card, on the other hand, has a much higher annual fee of $550, but it comes with richer rewards and more perks, including an annual $300 travel credit.

If you're a business owner, you may want to consider pairing the Sapphire Preferred Card with one of the best Chase business credit cards for additional value.

Here's a brief comparison of the three cards:

As you can see, the Chase Sapphire Reserve offers the most rewards, but it also comes with a higher annual fee. The Capital One Venture is a good option if you want a lower annual fee and a similar rewards structure to the Sapphire Preferred.

Ultimately, the choice between these cards will depend on your individual needs and preferences. Be sure to read the fine print and consider your spending habits before making a decision.

The American Express Gold Card is a mid-tier travel credit card that earns American Express Membership rewards. It offers 4X Membership Rewards points on purchases at restaurants worldwide, and 4X Membership Rewards points at US supermarkets.

Cardholders can earn 60,000 Membership Rewards points after spending $6,000 on eligible purchases in the first six months of Card Membership. This can be a significant bonus for those who use the card frequently.

The American Express Gold Card also comes with extra perks, such as secondary car rental insurance, trip delay insurance, baggage insurance, extended warranty, purchase protection, and up to $10 in Uber Cash each month. These benefits can add value to the card, especially for frequent travelers.

One notable benefit of the American Express Gold Card is the $10 monthly dining credit at Grubhub, The Cheesecake Factory, Goldbelly, Wine.com, and Five Guys. This can be a great incentive for foodies and those who order takeout or delivery regularly.

The card has an annual fee of $325, which is significantly higher than that of the Chase Sapphire Preferred Card. This fee is something to consider when deciding whether the card's benefits outweigh the cost.

You might like: Chase Sapphire Preferred Airport Benefits

So, you've weighed your options and considered the perks of both the Chase Sapphire Preferred and Reserve cards. The Sapphire Preferred Card is a great option for those who don't travel as much or don't want to pay a high annual fee.

It has a lower annual fee compared to the Reserve card, which is a big plus for those on a budget. The Sapphire Preferred Card offers accelerated points earning for travel, dining out, and more.

The Chase Ultimate Rewards program is a robust rewards system that can be used for travel, dining, and other purchases. This can be a great option for frequent and not-so-frequent travelers alike.

Ultimately, the Sapphire Preferred Card is a great choice for those who want a balance of perks and affordability.

See what others are reading: Chase Sapphire Preferred Restaurants