A Top-Tier Travel Rewards Card From Chase
Credit Needed: Good/Excellent
With the Chase Sapphire Preferred Card, enjoy benefits, which include 5x points on travel purchased through Chase Ultimate Rewards, 2x points on other travel purchases, 3x points on dining purchases at restaurants, eligible delivery and take out worldwide, and earn 1x points per dollar on everything else.
Not sure where to start? Spend $4,000 on purchases in the first three months and earn 60,000 bonus points. For some perspective, that can be redeemed for $750 toward travel through Chase Ultimate Rewards. In fact, you get 25% more value when you redeem your points for travel purchases through Chase Ultimate Rewards.
The travel benefits don’t end there, however. You also have the opportunity to transfer your points to a partner frequent travel program. Most transfers offer a solid 1:1 ratio. The partner programs include both airline and hotel programs like British Airways Executive Club, Flying Blue AIR FRANCE KLM, United MileagePlus, Marriott Bonvoy, World of Hyatt and more. These partnerships are especially worth it since the card does not come with a foreign transaction fee.
When not used toward travel expenses, you can redeem your points for a number of rewards like cash, gift cards or travel expenses. Geared towards travel spenders, the Chase Sapphire Preferred Card offers a better return when you use your points toward travel spending. Additionally, as long as your account is open and in good standing, your points will never expire.
Further benefits with the Chase Sapphire Preferred Card include trip cancellation insurance, auto rental collision damage waiver, baggage delay insurance, trip delay reimbursement, as well as protection for your purchases including returns and warranties.
All these benefits do come at a price, an annual fee of $95. The card’s APR for purchases and balance transfers is 16.74% - 23.74% Variable, depending on your creditworthiness and is variable with the Prime Rate. The APR for cash advances is 25.74% Variable. Cash advances also come with a fee of $10 or 5% of the transaction amount, whichever is greater. Balance transfers will also cost you, either $5 or 5% of the transaction amount, whichever is greater. If you pay late or have a returned payment, a Penalty Fee of up to 29.99% variable will apply. Both late payments and returned payments come with additional fees. Luckily, you won’t have to worry about a foreign transaction fee.
Smart Features
Trip cancellation/interruption insurance - With the Chase Sapphire Preferred Card, you can be reimbursed up to $10,000 per person up to $20,000 per trip for pre-paid, non-refundable travel expenses like fares, tours and hotels. Chase covers you in a lot of situations, whether you get sick or a hurricane threatens your vacation. Terms and conditions apply.
Rental car protection - When you charge a rental car to your card and decline the rental company’s collision insurance, Chase will provide primary coverage and provide reimbursement of the cash value of the vehicle in the event of theft or collision damage for most rental cars in the U.S or abroad.
Baggage delay insurance - If your baggage ends up delayed by over six hours, Chase will reimburse you for essential purchases like toiletries and clothes up to $100 per day for five days.
Purchase protection - Holding the Chase Sapphire Preferred Card offers coverage for 120 days on new purchases in case of damage or theft up to $500 per claim and $50,000 per account. Terms Apply.
Extended warranty - You gain an extra year on eligible U.S. manufacturer’s warranties of three years or less.
24/7 customer service - Chase offers 24/7 access to customer service, no matter where you may be.
Who it Benefits
The Chase Sapphire Preferred Card stands to mostly benefit frequent travelers looking to both earn through and save on travel expenses. With one point earned per dollar spent, the card won’t earn much at your supermarket or drugstore. But with 5x or 2x points earned on travel expenses (depending on if Ultimate Rewards or Other) and 3x points at dining at restaurants, you can benefit from this card if you’re spending enough in those categories.
When it comes to redeeming your points, the travel options offer the best returns. Sure, you can redeem points for cash or gift cards. The rate for travel redemption is much better, however, offering 25% more value when you redeem through Chase Ultimate Rewards.
If you already have a membership with a partner frequent traveler program, you can benefit even further. Usually, at a 1:1 ratio, you can transfer your Chase points to one of the many partner programs. That way, you can earn and benefit from both your Chase card and airline or hotel loyalty program.
How it Works
The Chase Sapphire Preferred Card earns 5x points on travel purchased through Chase Ultimate Rewards, 2x points on other travel purchases, 3x points on dining purchases at restaurants, eligible delivery and take out worldwide, and earn 1x points per dollar on everything else. You can also earn 60,000 bonus points for spending $4,000 on purchases in the first three months of opening the card.
Once you’ve earned enough points, you can redeem them for a number of rewards, including cash, gift cards and travel purchases. When you redeem your points for cash or gift cards, each point is worth one cent, so 100 points becomes $1. Travel redemption provides a larger return, with 100 points being valued at $1.25 when redeemed through Chase Ultimate Rewards. And as long as your account is open and in good standing, your points will never expire.
You can also use your points toward a partner travel program. These transfers often occur at a 1:1 ratio. The partner airline programs are British Airways Executive Club, Flying Blue AIR FRANCE KLM, Aer Lingus, Are Club, Iberia Plus, JetBlue TrueBlue, Singapore Airlines KrisFlyer, Southwest Airlines Rapid Rewards, United MileagePlus and Virgin Atlantic Flying Club. The partner hotel programs are IHG Rewards Club, Marriott Bonvoy, and World of Hyatt. Be sure to double-check the ratios at which your Chase points will transfer to make sure you get the best deal.
The Chase Sapphire Preferred Card comes with an annual fee of $95. The card carries a variable APR of 16.74% - 23.74% Variable, depending on your creditworthiness and the Prime Rate, for purchases and balance transfers. The APR for cash advances is 25.74% Variable. Cash advances also carry a fee of $10 or 5% of the transaction amount, whichever is greater. Balance transfers will cost either $5 or 5% of the transaction amount, whichever is greater. If you pay late or have a returned payment, a Penalty Fee of up to 29.99% variable will apply. Both late payments and returned payments come with additional fees. There is no foreign transaction fee.
What's the Catch
Interestingly, there really isn’t a catch to the Chase Sapphire Preferred Card other than the $95 annual fee. You don’t even have to worry about foreign transaction fees.
Just the Math
You earn 5x points on travel purchased through Chase Ultimate Rewards, 2x points on other travel purchases, 3x points on dining purchases at restaurants, eligible delivery and take out worldwide, and earn 1x points per dollar on everything else. Spending $4,000 on purchases in the first three months can earn you 60,000 bonus points.
When you redeem your points for cash or gift cards, each point is worth one cent (100 points = $1). Redeeming your points for travel expenses values each point at $0.0125 (100 points = $1.25). As long as your account is open and in good standing, your points will never expire.
When you transfer your points to a partner frequent traveler program, the points are often transferred at a 1:1 ratio, depending on the program.
How it Stacks Up
Another great travel rewards card is the Capital One Venture Rewards Credit Card. For a low annual fee of $95, and a solid early spend bonus, the Capital One Venture Rewards Credit Card earns 2x miles per dollar spent on all purchases. The card then offers deals to fly with any airline and stay at any hotel at any time, with no blackout dates. So you book your travel plans how and when you want, and pay for them with your miles. You won’t have to worry about making purchases abroad, either, since there is no foreign transaction fee.
However, if you’re looking to stay within the Chase family for your travel rewards credit card, you might like the Chase Sapphire Reserve card. To start, it comes with a sign-up bonus of 50,000 points for spending $4,000 in the first three months of account opening. Besides being able to redeem your points for great rewards, the Sapphire Reserve card provides cardholders with access to over 1,300+ luxury airport lounges, up to $100 Global Entry or TSA PreCheck fee credit and a $300 travel credit each year. The Reserve card does come with a hefty annual fee of $550, though, so you should make sure that cost won’t outweigh the benefits.
Interest Rates
Annual percentage Rate (APR) for Purchases
16.74% - 23.74% Variable, based on your creditworthiness. These APRs will vary with the market based on the Prime Rate. There is no 0% introductory period for purchases.
APR for Balance Transfers
16.74% - 23.74% Variable, based on your creditworthiness. These APRs will vary with the market based on the Prime Rate. There is no 0% introductory period for balance transfers.
APR for Cash Advances
Pay 25.74% Variable for cash advances. The APR will vary with the market based on the Prime Rate.
Penalty APR
If you fail to make a minimum payment by the due date or make a payment that is returned, you will receive up to 29.99% variable Penalty APR. This APR could potentially remain in effect indefinitely.
How to Avoid Paying Interest on Purchases
Your due date will be a minimum of 21 days after the close of each billing cycle. You will not be charged any interest on purchases if you pay your entire balance by the due date each month. Interest on balance transfers and cash advances will begin on the transaction date.
Minimum Interest Charge
None
Fees
Annual Fee:
$95
Transaction Fees
Balance Transfer: $5 or 5% of the amount of each transfer, whichever is greater
Cash Advance: $10 or 5% of the amount of each transfer, whichever is greater
Foreign Purchase Transaction: None
Penalty Fees
Late Payment: Up to $40
Returned Payment: Up to $40
The Bottom Line
The Chase Sapphire Preferred Card isn’t a bad card when you’re looking for travel rewards. But when compared with other travel rewards credit cards, its numbers can look pretty simple. With 5x points on travel purchased through Chase Ultimate Rewards, 2x points on other travel purchases, 3x points on dining purchases at restaurants, eligible delivery and take out worldwide, and earn 1x points per dollar on everything else, you would have to mainly use this card on travel and dining expenses. Using this card on your everyday grocery purchases wouldn’t earn you enough points or satisfaction. Luckily the card does provide 25% more value when you redeem your points for travel purchases through Chase Ultimate Rewards.
You’re also able to use your points towards a number of airline and hotel purchases. You can also transfer the points to a number of partner programs. This way, you won’t be limited to one or a few airline or hotel providers. Chase also makes sure to provide for you when traveling by providing rental, trip and purchase protections. You also won’t have to worry about a foreign transaction fee when traveling abroad. Just make sure that the $95 annual fee will make the card worth it for you.
Next Steps
- Finding a qualified financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to three financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
- With hundreds of credit cards out there, it’s hard to know which is the perfect one for you. It’s important to start by cementing what you want from a credit card. Do you want to earn credit card rewards? Do you want travel perks or do you just want cash back on everyday purchases? Answering questions like that will help narrow your search.
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