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The Chase Sapphire Preferred card is a travel rewards card issued by Chase Bank. This is a very popular travel rewards card because it offers a large sign-up bonus and the card is built around traveling. Many travel rewards cards have higher annual fees for the same kind of rewards.
Our Bottom Line
Maximize Your Travel Rewards
Credit Rating Requirements
Good – Excellent Credit
PROS
- 60,000 Point Sign-Up Bonus
- No Blackout Dates
CONS
- $95 Annual Fee
- Low Merchandise Rewards
Highlights
- 25% More through Ultimate Chase Rewards
- No Foreign Transaction Fee
- Purchase Protection
Here’s a summary of the main pros & cons (click to see explanation or scroll down):
Pros
Cons
Chase Sapphire Preferred Card – Benefits
Let’s take a look at the benefits of the Chase Sapphire Preferred card and see if it’s the right one for your wallet or not.
- 60,000 Point Sign-Up Bonus
You can get 60,000 points after spending $4,000 in the first 3 months of opening the card. This equals about $750 in travel rewards when a booking is done through Chase. This is one of the larger sign-up bonuses in the market.
- Bonus Points
You earn 2X the points when spending on travel or restaurants. All other purchases are 1 point for $1 spent. This card is designed to benefit travelers.
- No Blackout Dates
There are no dates when the points cannot be redeemed. They can be redeemed at any time of the year. In addition, the points do not expire and there are no limits on the use of the points.
- 25% More through Ultimate Chase Rewards
Your points go further when you book through Ultimate Chase Rewards. This includes flights, hotels, cruise, and car rentals. You can also combine rewards from other Chase credit cards to boost your points.
- No Foreign Transaction Fee
Chase Sapphire Preferred has no transaction fees while traveling in another country. Many other cards have fees when you make purchases outside of the United States.
- Protection
Chase Sapphire Preferred has zero liability, purchase protection, chip-enabled security, and auto rental collision damage waiver. It also has travel insurance that covers canceled flights and baggage delay insurance. These features help give you peace of mind while traveling at home and abroad.
- 1 Year No Annual Fee
The first year after signing up the Chase Sapphire Preferred waves there annual fee of $95.
Chase Sapphire Preferred Card – Drawbacks
Here are the most important cons you should consider before applying to the Chase Sapphire Preferred card:
- $95 Annual Fee
Chase Sapphire Preferred does not require new card holders to pay their annual fee for the first year, but beginning the second year there is a $95 annual fee. Many other credit cards do not have annual fees.
- Low Merchandise Rewards
If you are looking to use some of your reward points on merchandise, be aware that the conversion of points to reward for merchandise is low. The rewards should be used on travel.
- High APR
The APR for the Chase Sapphire Preferred is 18.24%-25.24% variable rate, which is high for a card that requires borrowers with good credit histories. The rate of a credit card cash advance is 27.24%
- No Introductory 0% APR Balance Transfer Fee
This card does not offer any introductory rate like many other credit cards do. This means if you are looking to transfer balances to a lower rate you will have to consider other cards.
- Balance Transfer Fee
Along with not offering an introductory APR rate, Chase Sapphire Preferred has a large balance transfer fee of 5%. This fee is higher than the industry average of 3%. Keep in mind – you can always try to negotiate your balance transfer fee.
Alternatives to Chase Sapphire Preferred Credit Card
There are other credit cards that do offer comparable cash back rewards – we’ve summarized the most popular cards which can use as an alternative to the Chase Sapphire Preferred Card:
The Chase Sapphire Reserve is the Chase Sapphire Preferred card, on steroids. The Chase Sapphire Reserve card offers many more rewards and benefits but those rewards come with a steep annual fee of $450. You get the same sign-up bonus of 50,000 points, but the Chase Sapphire Reserve points go further. They go about 25% further than the Chase Sapphire Preferred when travel is booked through Chase Ultimate Rewards. You get 3X the points on travel and restaurants with the Chase Sapphire Reserve. If you book travel through Chase you also get a $300 credit once every year, which can help pay for the fee.
Bank of America Travel Rewards card is another comparable travel rewards card. The Bank of America Travel Rewards card earns 1.5% on every purchase, which is higher than the Chase Sapphire Preferred. The Chase card does get more bonuses on specialty purchases but does not come with an introductory 0.00% APR and comes with an annual fee. The Bank of America Travel Rewards has an introductory rate and no annual fee. It does have a small bonus of 25,000 points but you only have to spend $1,000 to get it. The Bank of America card does not come with some of the travel protection that the Chase Sapphire Preferred does.
Capital One Venture card is a travel card that offers 50,000 miles on sign up after spending $3,000 in the first three months. This card is more focused on air miles than the Chase Sapphire Preferred. With the Venture card, you get an unlimited 10 miles per dollar spent at hotels.com through January 2020 and 2 miles per dollar on all other purchases. Capital One Venture also comes with a $95 annual fee and no introductory APR. It has similar travel protections as the Chase Sapphire Preferred. If you want to save on flying and rack up the miles, this the card for you.
Is the Chase Sapphire Preferred Card Right for You?
Chase Sapphire Preferred is one of the best travel rewards cards for those with good to excellent credit. If you spend much of your time traveling and eating out, this is an excellent card offering some of the best travel rewards in the market. Chase Sapphire Preferred offers a very large sign-up bonus. If you are looking for introductory APR, cash back, no annual fee, or points for merchandise, you should consider a different card. Chase Sapphire Preferred also has a large transfer fee so it should only be considered for purchases. It is primarily for consumers who want to maximize their travel rewards.