Chase Sapphire Preferred Card Review (old review NOT being updated)
This is an old review that is not being updated. For the current review visit here.
Updated June 25, 2021. For the temporary benefits during the COVID-19 pandemic, please see our featured review.
The Facts
The Math
The loss of 3x category in 2016 has no doubt devaluated the earning side of the card quite a bit. Now for the first time, this card compares unfavorably with several potential competitors, at least on paper.
Chase Sapphire Preferred vs. Chase Sapphire Reserve ($550): After considering the $300 annual travel credit, the Sapphire Reserve is $155 more than Sapphire Preferred. For that, you receive 1x additional points on travel & dining, impressive travel privileges (airport, hotels, car rentals), and better consumer and travel protection. If you value UR points at 1.5 cents a piece, you need to spend $10,333 per year in travel & dining to beat the $155 difference; then you will enjoy the extra perks and protection from Sapphire Reserve for free. Note that before the 2020 annual fee increase, it was much easier to justify choosing the more expensive Sapphire Reserve; however, now you really have to do your own math and especially weigh the extra perks and protection to make your decision between the two.
Chase Sapphire Preferred vs. Amex EveryDay Preferred (EDP): They have the same $95 annual fees. Assuming that you have at least 30 transactions per month, EDP's earning rate is 4.5-3-1.5, while Sapphire Preferred's earning rate is 2-1. At first glance, EDP is a clear winner; however, since their bonus categories (Sapphire Preferred has travel and dining, while EDP has groceries and gas) and transfer partners are so different, we actually think they are not direct competitors. In fact, they can be complementary to each other and be a great combo in your wallet.
Chase Sapphire Preferred vs. Citi Premier: They have the same annual fees, and both waive foreign transaction fees; currently we have similar valuation for Chase UR and Citi ThankYou points. Sapphire Preferred has travel & dining as the 2x categories, while ThankYou Premier has the grocery & gas & dining & most travel as the 3x categories. On paper, Citi has Chase beaten very hard in the rewards department. However, the real difference between the two lies in the different transfer partners: Citi has Avianca, Turkish, Cathay Pacific, Etihad, etc., while Chase has United, Southwest, British, Hyatt, etc.; they share some partners, such as JetBlue, Singapore, Flying Blue.
The Conclusion
Sapphire Preferred used to be considered as the benchmark of miles/points cards with multiple frequent traveler partners and its signature 3-2-1 rewards structure; however, the loss of 3x category in 2016 has an undeniably negative impact on its status and we have been hoping that Chase can do something to compensate that.
© 2011-2021 DrCreditCard.net All rights reserved.
Updated June 25, 2021. For the temporary benefits during the COVID-19 pandemic, please see our featured review.
The Facts
- Annual Fee: $95
- Signup Bonus: (1) 100,000 points (=$1,250 travel rewards via Chase, or 100K miles/points of United, Singapore, British, Flying Blue, Southwest, JetBlue, Hyatt, etc.) after spending $4,000 within 3 months of new account opening. Note that there is no more first annual fee waiver as before. This bonus is not available if you currently have a Sapphire card (Sapphire, Sapphire Preferred, or Sapphire Reserve) or have received signup bonus from any Sapphire card in the past 48 months. Based on anecdotal reports, this card is subject to Chase's 5/24 rule (you won't be approved for this card if you have opened 5 or more new accounts within the past 24 months; any new account with any issuer will count, not just with Chase; new accounts include most credit cards and charge cards but exclude non-Chase business cards and store charge cards). (2) The same 100K points offer as above but with the first annual fee waiver - in Chase branch only. Historical best bonus of this card: (1) 100,000 points with the first annual fee waiver in 2011 & 2021; (2) 100,000 points with $95 first year annual fee in 2021; (3) 80,000 points + $50 for groceries with $95 first year annual in 2021; (4) 80,000 points with $95 first year annual fee in 2020.
- Application landing page [Disclaimer: we will receive a referral bonus from Chase if you apply and are approved for this card. The signup bonus you will receive is the same as the public offer via Chase's non-referral link].
- Rewards: 2x dining & travel (airfare, hotels, car rentals, local and commuter transportation, and travel agencies), 1x everywhere else. In addition, through March 2022, earn 5x on Lyft purchases (3 additional points).
- Best Use of Ultimate Rewards (UR) points: The Ultimate Rewards is Chase's rewards program - normally the points can be redeemed for cash, merchandise, gift cards, or travel, at up to 1 cent per point (note: cash rewards have 1 cent value). However, Sapphire Preferred, not to be confused with the non-annual-fee Sapphire, offers two premium redemption options that are not available on regular UR cards: (1) to redeem for travel through UR booking portal and get 25% bonus value, essentially making 1 point = 1.25 cents, and (2) to transfer points into miles/points of frequent traveler programs. Please see our featured review on Marriott vs. MR vs. UR vs. TY vs. C1 vs. CR for detailed comparison of the five programs that allow miles/points transfer.
- Hotel Privileges: (1) Chase Luxury Hotel & Resort Collection (LHRC), through Signature Travel Network, offering perks such as daily complimentary breakfasts for two, room upgrades upon availability, early check-in and late check-out upon availability, and property specific amenities (such as a $100 spa/dining/hotel credit per stay), at over 900 luxury hotels and resorts worldwide. You may book a hotel on LHRCollection.com and the rates are mostly the same of the Best Available Rates (BAR, i.e., refundable flexible rates set by the hotel) and include taxes, resort fees, etc. This benefit is available on select Chase cards such as Sapphire Reserve, Sapphire Preferred, United MP Club, and United MP Explorer. (2) Visa Signature Luxury Hotel Collection which offers perks including daily complimentary breakfasts for two, room upgrades upon availability, late checkout upon availability, $25 food and beverage credit per stay, free room wi-fi, and VIP amenities, at over 900 luxury hotels and resorts worldwide. You may book a hotel on VisaSignatureHotels.com and the rates are the same as BAR. Note that the coverage and perks are different from LHRC's, but some hotels participate in both programs. This benefit is actually available to any U.S. issued Visa Signature cards.
- Other Benefits: (1) Waived foreign transaction fees with an embedded EMV chip for foreign travel. (2) Primary rental car collision coverage - note while most credit cards provide rental car insurance, they are secondary, meaning your personal insurance's collision damage coverage kicks in before the credit card's. Please see our featured review on credit cards that come with primary rental car insurance for details. This feature was added to the card to compensate the loss of 7% annual points dividend in July 2014. (3) Complimentary 24/7 Concierge Service. (4) Exclusive Events & Experiences such as a private dinner with a celebrity chef. (5) One year DoorDash's subscription service DashPass for free - activate before December 31, 2021. DashPass, normally $9.99 per month, offers $0 delivery fee and reduced service fees on food orders over $12 via DoorDash. (6) Through December 31, 2021, receive $60 statement credits for Peloton membership fees (Peloton Digital $13 per month, Peloton All-Access $39 per month).
- Protection: Sapphire Preferred offers the second highest level of consumer and travel protection among Chase cards.
- Other Facts: The card has a metal design and weighs about 13 grams, much heavier than regular plastics weighing 5 grams. Before the metal card design got popular in the recent years, if you wanted the wow effect swiping your card, this was the card to get if you did not have the $2,500 American Express Centurion. Sapphire Preferred was issued in both Visa and MasterCard networks for a while. However, it has been issued as a Visa Signature most recently.
- History: When introduced in 2009, Sapphire Preferred was lackluster. However, in July 2011, Chase introduced the 2x categories (dining and travel) and 7% annual points dividend, and this card suddenly became much more attractive. You would also receive one additional point for airfare and hotels through Ultimate Rewards, essentially making a 3.21x-2.14x-1.07x rewards card. Note that while airfare was an effective 3x category (no service charge and you would earn frequent flyer miles), most frequent travelers won't book hotels through third travel agencies due to the fact that hotel royalty programs may not give stay credits or points for those bookings. Since then, Sapphire Preferred has enjoyed huge popularity especially among frequent travelers. Chase also ran a "First Friday" promotion for a few years, which allowed you earn one additional point for dining on the first Friday each month (a total of three points). In July 2014, Chase removed the 7% annual dividend for new card members while keeping it through 2015 for existing card members; in addition, 3x airlines and hotels through UR would go away after December 2015; to compensate the loss, Chase introduced primary rental car insurance.
The Math
The loss of 3x category in 2016 has no doubt devaluated the earning side of the card quite a bit. Now for the first time, this card compares unfavorably with several potential competitors, at least on paper.
Chase Sapphire Preferred vs. Chase Sapphire Reserve ($550): After considering the $300 annual travel credit, the Sapphire Reserve is $155 more than Sapphire Preferred. For that, you receive 1x additional points on travel & dining, impressive travel privileges (airport, hotels, car rentals), and better consumer and travel protection. If you value UR points at 1.5 cents a piece, you need to spend $10,333 per year in travel & dining to beat the $155 difference; then you will enjoy the extra perks and protection from Sapphire Reserve for free. Note that before the 2020 annual fee increase, it was much easier to justify choosing the more expensive Sapphire Reserve; however, now you really have to do your own math and especially weigh the extra perks and protection to make your decision between the two.
Chase Sapphire Preferred vs. Amex EveryDay Preferred (EDP): They have the same $95 annual fees. Assuming that you have at least 30 transactions per month, EDP's earning rate is 4.5-3-1.5, while Sapphire Preferred's earning rate is 2-1. At first glance, EDP is a clear winner; however, since their bonus categories (Sapphire Preferred has travel and dining, while EDP has groceries and gas) and transfer partners are so different, we actually think they are not direct competitors. In fact, they can be complementary to each other and be a great combo in your wallet.
Chase Sapphire Preferred vs. Citi Premier: They have the same annual fees, and both waive foreign transaction fees; currently we have similar valuation for Chase UR and Citi ThankYou points. Sapphire Preferred has travel & dining as the 2x categories, while ThankYou Premier has the grocery & gas & dining & most travel as the 3x categories. On paper, Citi has Chase beaten very hard in the rewards department. However, the real difference between the two lies in the different transfer partners: Citi has Avianca, Turkish, Cathay Pacific, Etihad, etc., while Chase has United, Southwest, British, Hyatt, etc.; they share some partners, such as JetBlue, Singapore, Flying Blue.
The Conclusion
Sapphire Preferred used to be considered as the benchmark of miles/points cards with multiple frequent traveler partners and its signature 3-2-1 rewards structure; however, the loss of 3x category in 2016 has an undeniably negative impact on its status and we have been hoping that Chase can do something to compensate that.
© 2011-2021 DrCreditCard.net All rights reserved.