Key Points

• The Chase Sapphire Preferred earns 5x points on Chase Travel, 3x on dining, and 2x on general travel with a manageable $95 annual fee.
• The 60,000-point welcome bonus is worth $750 when redeemed through Chase Travel or transferred to partners like Hyatt and United.
• Best for beginners to travel rewards who want transfer partner flexibility without the complexity or cost of premium cards.

Introduction

The Chase Sapphire Preferred represents the sweet spot in travel rewards cards: premium earning rates without the premium price tag. At $95 annually, it delivers access to Chase's Ultimate Rewards program, 14 transfer partners, and strong category bonuses on travel and dining. If you're new to travel cards or spending $5,000-15,000 yearly on travel and dining, the Preferred often outperforms both no-annual-fee cards and expensive premium options. Let's break down whether this mid-tier card deserves a spot in your wallet and how it compares to its more expensive sibling, the Reserve.

Quick Summary

Best For: Travelers wanting premium redemption options without premium fees
Standout Benefit: Transfer points 1:1 to 14 airline and hotel partners
Biggest Drawback: Lower earning rates than the Reserve on Chase Travel bookings
Current Offer: 60,000 bonus points after spending $4,000 in the first 3 months

Apply for the Chase Sapphire Preferred

Chase Sapphire Preferred Overview

Chase introduced the Sapphire Preferred as the entry point to their Ultimate Rewards ecosystem. It provides the same transfer partners and point-pooling capabilities as the premium Reserve card while keeping the annual fee accessible for newer travelers and moderate spenders.

The card earns Ultimate Rewards points that transfer 1:1 to valuable partners including United Airlines, Southwest Airlines, World of Hyatt, and Marriott Bonvoy. You can also redeem points through Chase's travel portal at 1.25 cents per point, better than the standard 1 cent cash back value but less than the Reserve's 1.5 cent rate.

The current welcome offer provides 60,000 points after $4,000 spend in 3 months. At the 1.25 cent redemption rate through Chase Travel, that's $750 in travel value, or potentially much more through strategic transfer partner redemptions. The 60,000 points transfer to enough Hyatt points for two free nights at many Category 4 properties worth $300-500 per night.

Key Features and Benefits

Earning Structure

The Preferred focuses on travel and dining spending with bonus categories designed for everyday travelers:

5x points per dollar on Chase Travel purchases. This includes flights, hotels, car rentals, activities, and cruises booked through Chase's portal. A $500 hotel booking earns 2,500 points worth $31.25 in future travel.

3x points per dollar on dining worldwide. This covers restaurants, bars, food delivery services, and eligible dining subscriptions. Spending $500 monthly on dining earns 18,000 points annually, worth $225 in travel.

2x points per dollar on all other travel purchases. Book flights directly with airlines, pay for Uber rides, rent cars, or pay for parking, and you'll earn double points. This category ensures you earn bonus points regardless of how you book travel.

1x point per dollar on everything else. While the base rate seems basic, the card's value comes from travel and dining acceleration plus transfer partner flexibility.

Travel Redemption Value

Your points gain 25% more value when redeemed through Chase Travel compared to cash back. A $500 flight costs 40,000 points instead of 50,000 you'd need for cash back. This boost applies automatically when booking through Chase's portal.

Transfer partners often provide even better value. Those same 40,000 points transfer to United for flights potentially worth $800-1,200, or to Hyatt for hotel stays worth $400-800. The flexibility to choose between portal bookings and transfers means you're rarely stuck with poor redemption options.

Annual Travel Benefits

$50 annual hotel credit applies automatically when booking hotels through Chase Travel. The credit works like the Reserve's travel credit - make eligible purchases throughout the year, and Chase applies statement credits up to $50 total.

Primary rental car coverage protects against damage and theft for most rental cars worldwide. Being primary coverage means you file claims with Chase first, not your personal auto insurance, potentially avoiding rate increases on your car insurance.

Travel protections include trip cancellation/interruption insurance up to $10,000 per trip, baggage delay reimbursement up to $100 per day, and trip delay coverage up to $500 per ticket. While not as comprehensive as the Reserve's coverage, these protections handle most common travel disruptions.

Additional Perks

No foreign transaction fees saves 3% on international purchases compared to cards charging this fee. Spending $2,000 on a European vacation saves $60 in fees alone.

DoorDash activation credit provides three months of complimentary DashPass and $5 off four orders when you activate the offer. Total value approaches $60 for active DoorDash users.

Purchase protection covers new purchases against damage or theft for 120 days up to $10,000 per claim.

Extended warranty protection extends manufacturer warranties by one year on warranties of three years or less.

Real-World Value Calculation

Let's look at actual spending for a typical Preferred cardholder:

Annual spending breakdown:

• $6,000 on dining: 18,000 points
• $4,000 on travel (mix of Chase Travel and direct bookings): 18,000 points (average 4.5x across 5x and 2x categories)
• $8,000 on other purchases: 8,000 points
• Total annual earning: 44,000 points worth $550 at 1.25 cents

Add the 60,000-point welcome bonus ($750 value), and first-year total reaches $1,300 from a $95 card.

Annual fee offset:

• $50 hotel credit
• DoorDash activation offers: ~$60 value
• Foreign transaction fee savings (one international trip): $60
• Total credits and savings: $170

Effective first-year cost becomes negative $75 after considering credits against the $95 fee.

Pros and Cons

Pros

The $95 annual fee makes premium travel rewards accessible. You get transfer partner access and enhanced redemption rates without the $550+ fees of ultra-premium cards. For travelers spending $8,000-15,000 annually on travel and dining, the Preferred's earning rates justify the modest fee.

Transfer partner flexibility provides redemption options when Chase Travel prices run high. Transfer 50,000 points to Hyatt for two nights at a luxury property normally costing $400+ per night, or move points to United for transatlantic business class seats. Having options means you'll rarely feel stuck with poor redemption value.

The 3x dining category captures significant everyday spending. Between restaurants, food delivery, and dining subscriptions, many cardholders spend $400-800 monthly in this category. At 3x, that's 14,400-28,800 points annually from normal eating habits.

Primary rental car insurance provides genuine value for frequent car renters. The coverage typically saves $15-30 per rental day versus buying the rental company's insurance, and being primary coverage avoids involving your personal auto insurance.

Points pool with other Chase cards in your household. Combine points from Freedom Unlimited, Freedom Flex, and multiple Sapphire cards to maximize redemption value. This ecosystem approach multiplies earning potential across different spending categories.

Cons

The 5x Chase Travel earning rate requires booking through Chase's portal. While prices usually match other sites, you can't earn maximum points booking directly with airlines or hotels where you might have elite status or prefer using specific booking platforms.

The Preferred earns half the rate of the Reserve on Chase Travel purchases. Someone spending $5,000 annually on Chase Travel earns 25,000 points with the Preferred versus 50,000 with the Reserve - a 25,000 point difference worth $312.50 at the Preferred's redemption rate.

No airport lounge access means paying $35+ per visit or using other cards for this perk. Frequent travelers making 4+ trips annually might find the Reserve's Priority Pass access worth the fee difference.

The $50 hotel credit requires booking through Chase Travel and provides less flexibility than the Reserve's broader $300 travel credit. You can't use it for flights, rideshares, or dining - only hotel bookings through Chase's portal.

Transfer partners overlap significantly with other programs. If you already hold the Reserve or other premium cards, the Preferred's benefits become redundant. It works best as your primary travel card, not supplementing existing premium cards.

How the Preferred Compares

Versus Chase Sapphire Reserve

The Reserve costs $550 annually but offers 10x on Chase Travel hotels and car rentals, 5x on Chase Travel flights, Priority Pass lounge access, and a $300 travel credit. Choose the Reserve if you're spending $15,000+ on travel and dining or value lounge access. The Preferred works better for moderate travelers who'll offset the $95 fee but can't justify $550.

The math shifts around $12,000 annual travel and dining spend. Below this threshold, the Preferred typically delivers better value. Above it, the Reserve's higher earning rates and valuable perks justify the price difference.

Versus Capital One Venture

The Venture charges $95 and earns 2x miles per dollar on everything, with no bonus categories. It's simpler but less rewarding for travel and dining spending. The Venture edges ahead for those spending heavily outside travel and dining, while the Preferred wins for restaurant and travel purchasers. Both offer similar transfer partner access, though Capital One and Chase partner with different airlines.

Versus Chase Freedom Unlimited

The Freedom Unlimited charges no annual fee and earns 1.5x points on everything, 3x on dining and drugstores, and 5x on Chase Travel. For someone spending under $5,000 annually on travel and dining, the Freedom Unlimited often delivers comparable value without the annual fee. The Preferred pulls ahead for higher spenders who'll use transfer partners and earn more from the 2x general travel category.

Versus American Express Gold

The Amex Gold costs $250 annually and earns 4x at restaurants and U.S. supermarkets (up to $25,000 annually). It provides stronger dining rewards but lacks the Preferred's transfer partner flexibility and 2x travel category. Choose the Gold for grocery and dining focus, the Preferred for balanced travel and dining earning.

Who Should Get the Preferred

Great Fit For:

Travel rewards beginners ready for an annual fee card. The Preferred introduces transfer partners and enhanced redemptions without overwhelming complexity. It's the logical step up from cash-back cards when you're ready to maximize travel value.

Travelers spending $5,000-15,000 annually on travel and dining. This spending range generates enough points to justify the $95 fee while not reaching levels where the Reserve's benefits become worthwhile. Your dining habits alone could cover the fee.

Those building a Chase card ecosystem. Pair the Preferred with Freedom Flex for rotating 5x categories and Freedom Unlimited for 1.5x everywhere else. Pool all points to the Preferred for enhanced redemption values. This strategy maximizes Ultimate Rewards earning across spending categories.

Moderate travelers taking 2-4 trips yearly. You'll appreciate the travel protections and bonus earning rates without needing expensive perks like lounge access. The card delivers premium value for realistic travel frequency.

Anyone under Chase's 5/24 rule. If you've opened fewer than 5 credit cards in 24 months, the Preferred represents excellent value. The transfer partners and point-pooling capabilities provide long-term benefits beyond the welcome bonus. Learn more about Chase's 5/24 rule.

Not Ideal For:

Complete beginners to credit cards. Start with no-annual-fee cards like Freedom Unlimited to build credit history first. Chase typically wants to see established credit before approving annual fee cards, and you'll want experience managing credit before paying annual fees.

Light travelers taking 0-1 trips annually. The $95 fee proves difficult to justify without regular travel or dining spending. You'd be better served by a flat-rate cash back card earning 1.5-2% on everything without annual fees.

Those spending heavily on groceries and gas. The Preferred's 1x rate on these common categories means you're leaving significant rewards on the table. Cards offering 3-6x on groceries and gas stations deliver better value for everyday spending.

Travelers already holding the Reserve. Chase's One Sapphire rule prohibits having both cards simultaneously. If you already hold the Reserve, you can't add the Preferred without downgrading. Choose one based on annual spending and benefit usage.

Anyone at or over 5/24. Chase automatically denies applications from people who've opened 5+ credit cards in 24 months. If you're at this limit, you won't be approved regardless of credit score or income.

Application Requirements

Chase typically approves Preferred applications for applicants with:

• Credit scores of 690+ (though 720+ improves odds significantly)
• 2+ years of credit history
• Credit utilization under 30%
• Household income of $40,000+ (though not explicitly required)

The Preferred falls under Chase's 5/24 rule. You'll be automatically denied if you've opened 5+ credit cards from any issuer in the past 24 months. Check your credit card application dates before applying to avoid wasting a hard inquiry.

Chase reviews recent credit activity closely. Multiple applications in a short period or several new accounts raise red flags. Space credit card applications at least 2-3 months apart to demonstrate responsible credit management.

Having an existing Chase banking relationship can help. A checking or savings account for 3+ months before applying demonstrates banking history with Chase, though it's not required for approval.

Making the Most of Your Preferred

Pair with Freedom cards to maximize earning across all spending. Use Freedom Flex for 5x rotating categories, Freedom Unlimited for 1.5x everywhere else, and the Preferred for travel and dining. Pool all points to the Preferred account for enhanced redemption value.

Transfer to Hyatt for maximum value. Ultimate Rewards points often reach their highest value transferring to Hyatt, where they're frequently worth 1.8-2.5 cents each. A 50,000-point redemption at a luxury Hyatt property can deliver $900-1,250 in value.

Book Chase Travel for simplicity when transfer partners don't make sense. Domestic flights and mid-range hotels often work fine at the 1.25 cent redemption rate. Save transfer partners for premium redemptions where point value multiplies.

Use the $50 hotel credit strategically. Apply it to hotels you'd book anyway rather than searching for exactly $50 properties. The credit works automatically when booking Chase Travel hotels, so normal travel planning triggers it naturally.

Track rotating Freedom categories. If you also hold Freedom Flex, maximizing 5x categories throughout the year adds thousands of points to your annual total. These points transfer to your Preferred for enhanced redemption value.

FAQ

How long until I receive my welcome bonus?

The 60,000 bonus points post 5-7 days after meeting the $4,000 spending requirement within 3 months. Track your progress through your Chase account to avoid missing the deadline.

Can I product change to the Reserve later?

Yes, Chase allows upgrading to the Reserve after holding the Preferred for at least one year. However, you won't receive a new welcome bonus when upgrading. Most people prefer keeping the Preferred long-term or applying for the Reserve as a separate card before hitting 5/24.

Do my points expire?

Ultimate Rewards points remain active as long as you maintain an open Chase card that earns these points. If you close your Preferred, Chase gives you 30 days to transfer or redeem points. Keep a no-annual-fee Freedom card to preserve points indefinitely.

What's the best transfer partner for beginners?

Hyatt typically offers the best value for straightforward redemptions. Transfer 15,000-25,000 points for free nights at properties normally costing $200-400. The value is easy to calculate and consistently strong compared to cash rates.

Can I hold both the Preferred and Freedom Unlimited?

Yes, these are separate card products. Many cardholders hold both to maximize earning: Preferred for travel and dining, Freedom Unlimited for everything else. Points from both cards pool together in the Ultimate Rewards program.

Should I pay the annual fee with points?

No, paying the $95 fee with points requires 9,500 points worth $118.75 in travel value. Pay the fee in cash and preserve points for higher-value redemptions. The fee is tax-deductible for business card versions if you use it for business purposes.

Final Verdict

The Chase Sapphire Preferred deserves its reputation as one of the best mid-tier travel cards available. The $95 annual fee provides access to premium features like transfer partners and enhanced redemptions without the complexity or cost of ultra-premium cards. For travelers spending $5,000-15,000 annually on travel and dining, it consistently delivers strong value.

The card shines as part of a Chase card family. Pair it with Freedom Flex and Freedom Unlimited to maximize earning across all spending categories, then pool everything to your Preferred for better redemption rates. This ecosystem approach turns everyday spending into meaningful travel rewards.

If you're taking 2-4 trips yearly and eat out regularly, the Preferred likely offers better value than both no-annual-fee alternatives and expensive premium cards. The welcome bonus alone covers 2-3 years of annual fees, and ongoing earning from normal spending keeps delivering value long after. Ready to see if you qualify? Check the current bonus offer and start building your next trip with Ultimate Rewards points.

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