Chase Sapphire Preferred^® Card Review: Is It Worth the Annual Fee?

 

 

For those who travel frequently and are looking for an outstanding travel rewards card, the Chase Sapphire Preferred^® Card’s benefits more than justify the $95 annual fee. It offers many of the features you’d expect from a top travel card, including a huge sign-up bonus. You’ll earn points at a fast pace on a variety of everyday categories, including 3X points on dining and a stellar 5X points on travel. You’ll also get a $50 annual hotel credit.

Plus, it gives you access to the Chase Ultimate Rewards^® program, which is one of the most flexible options around. You’ll get up to a 75% bonus on Chase Travel^SM portal redemptions. And you can transfer points to a variety of loyalty programs — including United, Southwest and Hyatt — for even more value.

But in exchange for a lower annual fee, you’ll miss out on premium travel benefits, like lounge access or a TSA PreCheck or Global Entry credit. If you’re a heavy traveler who can get value out of these types of benefits, you might level up with a higher-annual-fee card like the Chase Sapphire Reserve^®.

→ Not the right card for you? Check out our top travel credit cards

Annual fee: $95

Regular purchase APR: 19.99% - 28.24% Variable

Foreign transaction fee: $0

Sign-up bonus: Earn 75,000 bonus points after you spend $5,000 on purchases in the first 3 months from account opening.

Rewards: 1X - 5X points

• Enjoy benefits such as 5x on travel purchased through Chase Travel℠
• Earn 3x on dining, select streaming services and online groceries
• Earn 2x on all other travel purchases
• Earn 1x on all other purchases

Other benefits:

• $50 Annual Chase Travel Hotel Credit
• Primary car rental insurance
• Trip interruption/cancellation insurance
• Trip delay reimbursement
• Complimentary DashPass subscription

Recommended credit: Excellent

• Sign-up bonus (4.6 out of 5 stars)

  With the Chase Sapphire Preferred^® Card, you can earn 75,000 bonus points after you spend $5,000 on purchases in the first 3 months from account opening. This is one of the best sign-up bonuses currently available among travel rewards cards.

  Who’s eligible to apply?

  You have to be a new card member to qualify for the sign-up bonus. So if you already have a Chase card or you’ve received a bonus for any Sapphire card within the last 48 months, this bonus isn’t applicable. You also have to spend $5,000 on new purchases within the first three months of getting this card to land this offer — that excludes things like balance transfers, cash advances and wire transfers. Plus, your account has to be open and not in default at the time of fulfillment.

   

• Earning points (4.8 out of 5 stars)

  This card offers one of the highest rewards rates you can find for a card with a $95 annual fee. It’s a great option for people who spend heavily on travel and dining, since it rewards cardholders richly in these categories. You’ll enjoy benefits such as 5x on travel purchased through Chase Travel℠, 3x on dining, select streaming services and online groceries, 2x on all other travel purchases, 1x on all other purchases Additionally, earn 5x total points on Lyft rides.

  In fact, because of the high value of Chase points, it’s one of the most rewarding cards for travel. Notably, you can find cards with better overall rewards rates in cards like the American Express^® Gold Card (see rates & fees) or the Capital One Venture X Rewards Credit Card, but those also come with higher annual fees than the Chase Sapphire Preferred^® Card.

  Rewards earned per $1 spent*

  • The American Express^® Gold Card: $0.046
  • Capital One Venture X Rewards Credit Card: $0.043
  • Chase Sapphire Reserve^®: $0.041
  • Capital One Venture Rewards Credit Card: $0.037
  • Chase Sapphire Preferred^® Card: $0.035
  • Citi Strata Premier^® Card: $0.033

  *Based on LendingTree’s value methodology

   

• Redeeming points (5 out of 5 stars)

  When it comes to actually cashing in on the points you earn with the Chase Sapphire Preferred^® Card, it’s hard to beat this card’s flexibility. Chase Ultimate Rewards^® points are some of the most valuable and flexible rewards around. That’s because you can redeem them for any travel purchase at a rate of up to 1.75 cents per point, and you can even transfer them at a 1:1 ratio to over 10 of the company’s partners for a potential value of around 2 cents per point.

  Plus, you can redeem points for cash back for a value of 1 cent per point, which gives you the option to cash out your points if you’re in a pinch or want to close your card.

  Value of 1,000 Ultimate Rewards points

  • Cash back: $10
  • Gift cards: $10
  • Travel on Chase Travel^SM portal: At least $15
  • Transfer to loyalty program: ~$20
  • Pay with points on Amazon.com and PayPal: $8

   

  Chase Sapphire Preferred^® Card transfer partners

  • Aer Lingus AerClub
  • Air Canada Aeroplan
  • 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
  • IHG Rewards Club
  • Marriott Bonvoy
  • World of Hyatt

   

  → Learn more about transferring Chase points

• Other benefits (3 out of 5 stars)

  The Chase Sapphire Preferred^® Card’s travel benefits don’t stop at its rewards. You also have access to great travel protections, like primary car rental insurance and trip cancellation insurance. All told, these are especially impressive considering that the Chase Sapphire Preferred^® Card’s annual fee is just $95.

  However, you should be aware that you’re not going to get some of the premium travel benefits that you can get with other higher-fee cards, such as airport lounge access.

  Here’s a quick breakdown of the Chase Sapphire Preferred^® Card‘s benefits:

  • Primary car rental insurance: Get coverage in the form of a reimbursement up to the actual cash value for theft or damage of a rental vehicle if you decline the rental car company’s coverage. Coverage is primary, which means you can submit your claim straight to Chase without having to go through your personal car insurance first.
  • $50 hotel credit: Up to a $50 annual credit for hotels booked through Chase Travel.
  • Trip cancellation/interruption insurance: If your trip is canceled or you have to end it early due to covered events like illness or severe weather, you can get reimbursed up to $10,000 per person (or $20,000 per trip), assuming your trip is prepaid and non-refundable.
  • Trip delay reimbursement: Up to $500 per ticket for trip delays over 12 hours or those that require an overnight stay.
  • Baggage protection: Up to $100 per day (for up to five days) toward essentials like toiletries and clothing for baggage delays over six hours.
  • Purchase protection: Eligible new purchases are covered against damages or theft for the first 120 days, up to $500 per claim (and $50,000 per account).
  • Extended warranty protection: Get a one-year extension on eligible warranties of three years or less.
  • DashPass subscription: Complimentary DashPass, which unlocks $0 delivery fees and lower service fees, for a minimum of one year when you activate by the end of 2027. Plus, you’ll get a $10 promo each month on non-restaurant orders.

   

  → See the best credit cards for travel insurance

Chase Sapphire Preferred^® Card vs. Chase Sapphire Reserve^®

The Chase Sapphire Reserve^® could make more sense for frequent travelers looking to maximize their rewards. It also comes with a great sign-up bonus, as well as a $300 travel credit that applies to any eligible travel purchase — not just hotels. Plus, you’ll get other plush travel perks, including Priority Pass airport lounge access and a credit for Global Entry/TSA PreCheck.

Just like the Chase Sapphire Preferred^® Card, you can transfer points to Chase’s travel partners or redeem them through Chase Travel^SM with an added benefit: an up to 100% (rather than up to 75%) boost on your rewards.

But with a $795 annual fee, you should ensure you’re taking advantage of all these benefits to justify the fee.

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Chase Sapphire Preferred^® Card vs. American Express^® Gold Card

The American Express^® Gold Card is a better option for those who tend to spend more on food than travel. You can earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year. Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year. Earn 3X Membership Rewards® points per dollar spent on flights booked directly with airlines or on AmexTravel.com. Earn 2X Membership Rewards® points per dollar spent on prepaid hotels and other eligible purchases booked on AmexTravel.com. Earn 1X Membership Rewards® point per dollar spent on all other eligible purchases. Terms apply.

Plus, there’s up to a $120 annual dining credit ($10 monthly) when you spend money at select restaurants (enrollment required). And you may be eligible for as high as 100,000 Membership Rewards® Points after spending $6,000 in eligible purchases on your new Card in your first 6 months of Membership. Welcome offers vary and you may not be eligible for an offer. Just make sure you’re using the rewards regularly to justify the card’s somewhat hefty $325 annual fee (see rates & fees).

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Chase Sapphire Preferred^® Card vs. Capital One Venture Rewards Credit Card

If you’re looking for another card that offers solid rewards for occasional travel, with a relatively low annual fee, the Capital One Venture Rewards Credit Card could be it. It lets you earn miles at the same flat rate on most purchases with elevated earnings on hotels and rental cars booked through Capital One Travel.

You can either book travel through Capital One Travel with your miles or transfer them to over 15 travel loyalty programs. As a drawback, Capital One has a slightly less robust set of travel partners than Chase, with no major U.S. airlines. However, the Capital One Venture Rewards Credit Card does have one advantage over the Chase Sapphire Preferred^® Card: an up to $120 credit for Global Entry or TSA PreCheck.

→ See the best cards for Global Entry/TSA PreCheck

The Chase Sapphire Preferred^® Card could be an excellent option if you have great credit, travel frequently and want a new card that offers solid travel rewards without a huge annual fee.

However, if you’re a frequent traveler who is looking for better travel perks and even more rewards, you should check out a higher-tier travel card like the Chase Sapphire Reserve^®.