The Chase Sapphire Preferred card consistently ranks among the top travel rewards credit cards, and for good reason. It offers a compelling blend of lucrative earning rates, flexible redemption options, valuable travel protections, and an accessible annual fee, making it an excellent choice for both seasoned travelers and those just beginning their rewards journey. This comprehensive guide will delve into the essential features of the Chase Sapphire Preferred, outlining its benefits, potential drawbacks, and ultimately, why it might be the perfect card for you.
Unlocking the Power of Chase Ultimate Rewards
At the heart of the Chase Sapphire Preferred’s appeal lies the Chase Ultimate Rewards program. This proprietary points currency is widely regarded as one of the most valuable and versatile in the credit card industry. When you earn points with your Sapphire Preferred, you’re accumulating a flexible currency that can be redeemed in various ways, offering significant value and personalization.
Earning Points:
The Sapphire Preferred card offers accelerated earning on popular spending categories, allowing you to rack up points quickly:
- 5x points on travel purchased through Chase Travel℠: This is a significant boost for booking flights, hotels, rental cars, and cruises directly through Chase’s portal. This essentially means you’re getting a 5% return on your travel bookings within their system.
- 3x points on dining, including eligible delivery services and takeout: Whether you’re enjoying a sit-down meal, ordering in, or grabbing food to go, you’ll earn triple points, making it a great card for foodies.
- 3x points on online grocery purchases (excluding Walmart, Target, and wholesale clubs): This category specifically targets online grocery orders, reflecting a growing consumer trend and offering a valuable earning opportunity for everyday essentials.
- 3x points on select streaming services: For those subscribed to popular streaming platforms, this offers a convenient way to earn points on recurring entertainment expenses.
- 2x points on all other travel purchased outside Chase Travel℠: This includes direct bookings with airlines, hotels, and other travel providers, still offering a solid return on your travel spending.
- 1x point on all other eligible purchases: All other spending earns a base rate of one point per dollar.
Redeeming Points:
The true power of Ultimate Rewards points lies in their diverse redemption options:
- 1.25 cents per point value when redeemed for travel through Chase Travel℠: This is a key benefit. Your points are worth 25% more when you book travel through the Chase portal. For example, 50,000 points become worth $625 towards flights or hotels. This makes it a very straightforward way to offset travel costs.
- Transfer to airline and hotel loyalty programs at a 1:1 ratio: This is often considered the most valuable redemption option. Chase partners with over a dozen leading airline and hotel programs, including United MileagePlus, Southwest Rapid Rewards, Marriott Bonvoy, Hyatt, and British Airways Executive Club, among others. By transferring points, you can unlock potentially even greater value, especially when redeeming for business or first-class flights or high-end hotel stays where the cash price would be significantly higher. This flexibility allows you to leverage transfer bonuses and dynamic pricing in loyalty programs to maximize your redemption value.
- Cash back: You can redeem points for cash back at a value of 1 cent per point. While this is a simple option, it generally yields less value compared to travel redemptions.
- Gift cards: Points can be redeemed for gift cards at a value of 1 cent per point.
- Pay Yourself Back: This program allows you to use your points to offset eligible purchases in select categories, offering a fixed value per point (which can vary) against specific transactions. This provides flexibility for those who want to use their points for non-travel expenses.
- Apple Ultimate Rewards Store and Amazon.com: You can use your points for purchases through these platforms, though often at a lower redemption value.
Key Benefits and Features
Beyond point earning and redemption, the Chase Sapphire Preferred offers a suite of valuable benefits designed to enhance your travel experiences and provide peace of mind:
- Annual Hotel Credit: Earn up to $50 in statement credits each account anniversary year for hotel stays purchased through Chase Travel℠. This effectively reduces the effective annual fee for those who utilize it.
- 10% Anniversary Point Bonus: Each account anniversary, you’ll earn bonus points equal to 10% of your total purchases made the previous year. For example, if you spent $25,000, you’d receive an extra 2,500 points. This is a nice perk for loyal cardholders.
- Primary Car Rental Insurance: Decline the rental company’s collision insurance and be covered for theft and damage to your rental car when you pay with your Sapphire Preferred. This is primary coverage, meaning you don’t have to file a claim with your personal car insurance first, saving you from potential headaches and increased premiums.
- Trip Cancellation/Interruption Insurance: If your trip is canceled or interrupted due to covered reasons (like illness or severe weather), you can be reimbursed for non-refundable travel expenses, up to a certain limit per person.
- Trip Delay Insurance: If your common carrier travel is delayed by more than 12 hours or requires an overnight stay, you and your family can be reimbursed for reasonable expenses, such as meals and lodging.
- Baggage Delay Insurance: If your checked luggage is delayed by more than 6 hours, you can be reimbursed for essential purchases like toiletries and clothing.
- Lost Luggage Reimbursement: If your checked or carry-on luggage is lost or damaged, you can be reimbursed up to a certain amount per passenger.
- Purchase Protection: New purchases are covered against damage or theft for 120 days from the purchase date, up to $500 per claim and $50,000 per account.
- Extended Warranty Protection: Extends the U.S. manufacturer’s warranty by an additional year on eligible warranties of three years or less.
- No Foreign Transaction Fees: This is crucial for international travelers, as it saves you 2-3% on every purchase made abroad.
- Lyft Benefits: Earn 5x total points on Lyft rides through March 2025.
- DoorDash Benefits: Complimentary DashPass for at least one year when activated by December 31, 2024. DashPass provides unlimited deliveries with $0 delivery fee and reduced service fees on eligible orders.
Potential Drawbacks
While the Chase Sapphire Preferred offers significant value, it’s important to consider a few potential drawbacks:
- Annual Fee: The card carries a $95 annual fee. While modest compared to premium travel cards, it’s a cost you need to justify with the benefits you receive.
- No Lounge Access: Unlike some higher-tier travel cards, the Sapphire Preferred does not offer complimentary airport lounge access.
- Earning Caps: While rare, some bonus categories may have spending caps. Always refer to the most up-to-date terms and conditions.
Is the Chase Sapphire Preferred Right for You?
The Chase Sapphire Preferred is an excellent choice for individuals who:
- Want to earn valuable travel rewards: The Ultimate Rewards program is incredibly flexible and rewarding.
- Travel frequently, or plan to start: The accelerated earning on travel and dining, combined with robust travel protections, makes it ideal for globetrotters.
- Prefer flexibility in their redemptions: The ability to transfer points to airlines and hotels or book directly through Chase provides ample options.
- Are comfortable with a modest annual fee: The $95 fee is easily offset by the benefits, especially the annual hotel credit and the increased point value for travel.
- Are looking for a stepping stone to more premium travel cards: The Sapphire Preferred is often a prerequisite for obtaining more exclusive Chase cards like the Sapphire Reserve, allowing you to combine Ultimate Rewards points across accounts.
How to Apply for the Chase Sapphire Preferred Card in English
Applying for the Chase Sapphire Preferred card is a straightforward process, primarily done online. Here’s a general guide on how to apply:
- Check Your Credit Score: Before applying, it’s highly recommended to check your credit score. The Chase Sapphire Preferred typically requires good to excellent credit (generally FICO scores of 670 or higher). While a good score doesn’t guarantee approval, a low score will likely result in denial. You can get free credit reports from AnnualCreditReport.com and many credit card issuers or financial institutions offer free FICO score access.
- Visit the Official Chase Website: The safest and most direct way to apply is to visit the official Chase website. Be wary of third-party websites claiming to offer applications.
- Navigate to the Credit Cards section.
- Look for the “Travel” category or specifically search for “Chase Sapphire Preferred.”
- Review the Card Details: On the product page, carefully read through the most current offer, including the sign-up bonus, earning rates, annual fee, and other terms and conditions. Offers can change, so always ensure you’re looking at the latest information.
- Click “Apply Now”: Once you’re ready, click on the “Apply Now” or “Apply for this Card” button.
- Complete the Application Form: You will be prompted to fill out an online application form. Be prepared to provide the following information:
- Personal Information: Full legal name, date of birth, Social Security Number (SSN), mailing address, email address, and phone number.
- Financial Information: Annual income (individual and/or household), employment status (employed, self-employed, retired, etc.), and monthly housing payment.
- Contact Information: Your primary phone number and email address.
- Security Questions: You may be asked security questions to verify your identity.
- Review and Submit: Before submitting, carefully review all the information you’ve entered to ensure accuracy. Any errors could delay your application or lead to a denial. Once you’re confident, click the “Submit” button.
- Application Decision:
- Instant Approval: In many cases, you might receive an instant approval decision.
- Pending Review: If your application requires further review, you’ll see a message indicating that Chase needs more time. You may receive a decision within a few business days, or Chase might contact you for additional information.
- Denied: If your application is denied, Chase will send you a letter explaining the reasons for the denial within a certain timeframe. You can also call Chase’s reconsideration line to see if there’s anything you can do to get approved, especially if the denial was due to a minor issue.
- Welcome Kit: If approved, you will receive your new Chase Sapphire Preferred card and a welcome kit in the mail, typically within 7-10 business days. This kit will include important information about your card, benefits, and how to activate it.
Important Considerations Before Applying:
- The 5/24 Rule: Chase has an unwritten rule, famously known as the “5/24 rule.” This rule generally means that if you have opened 5 or more personal credit cards (from any issuer, not just Chase) in the last 24 months, your application for most Chase cards, including the Sapphire Preferred, will likely be denied. It’s crucial to be aware of this before applying.
- Credit History: Ensure you have a solid credit history with no recent bankruptcies, foreclosures, or a high number of late payments.
- Income: While there’s no specific income requirement, Chase will assess your ability to repay debt based on your reported income.
By understanding the features, benefits, and application process, you can confidently determine if the Chase Sapphire Preferred card aligns with your financial and travel goals, setting you on a path to maximizing your rewards and enhancing your journeys.
