Chase Sapphire Preferred Card Review
Updated September 8, 2024.
The Facts
The Math
With the August 2021 enhancements, this card finally becomes incredibly competitive with a powerful 5-3-2-1 earning structure. Some detailed discussions on travel booked through UR which returns 5x points: it makes a lot of sense to book airfare (other than a few exceptions such as Southwest) to take advantage of the bonus, as the rates are the same as if you book directly with airlines and if you remember to add your frequent flyer number you will still earn miles and be recognized for your elite status; however, you may want to think twice before booking hotels, because several hotel programs won't allow points earning or recognize your elite status if you book through a third party; also be careful about car rentals, as you might not be able to apply certain coupons or promotions. Increasing dining earnings from 2x to 3x, Chase finally aligns Sapphire Preferred with non-fee Freedom Flex and Freedom Unlimited; to differentiate these products, Chase makes online groceries & streaming additional 3x categories for Sapphire Preferred while having drugstores for the Freedom duo.
Chase Sapphire Preferred vs. Chase Sapphire Reserve ($550): After considering the $300 annual travel credit, the Sapphire Reserve is $155 more than Sapphire Preferred. With that, you receive 5x additional points for Chase Dining & hotels & car rentals through UR and 1x additional points on travel not through UR, the increased fixed-value travel redemption value (1.5 vs. 1.25 cents), impressive travel privileges (airport, hotels, car rentals), and better consumer and travel protection. You need to do your own math, especially weighing 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 5.1-3.1-2.1-1.1. Both offer impressive rewards; in addition, since their bonus categories (Sapphire Preferred has travel & dining & streaming, while EDP has groceries & gas) and their transfer partners are so different, we actually think they are not direct competitors. As a matter of fact, they can be complementary to each other and be a great combo in your wallet.
Chase Sapphire Preferred vs. Citi Strata 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 5-3-2 bonus categories covering travel & dining & online groceries & streaming, while Strata Premier has 10-3 bonus categories covering travel & dining & groceries & gas and EV charging. You need to do your own math to see which one comes out ahead, but Strata Premier appears to be better for most consumers. 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
After more than five years since the last revamp, with the August 2021 enhancements, Chase Sapphire Preferred has finally been back to the game as one of our top recommendations (#2 overall, top 10 in signup bonus, #3 in rewards, #7 in protection).
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The Facts
- Annual Fee: $95
- Signup Bonus: 60,000 points (=$750 travel rewards via Chase, or 60K 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). 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 & 2022.
- 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: 5x travel booked through Ultimate Rewards, 3x dining & online groceries & select streaming services, 2x other travel, 1x everywhere else. In addition, through March 2025, earn 5x on Lyft purchases and Peloton equipment & accessory purchases over $250 (3 additional points). Receive 10% anniversary bonus points based on your spending in the previous membership year (e.g., if you spent $30,000, you will receive 3,000 bonus points), which essentially makes this card return 5.1x, 3.1x, 2.1x, and 1.1x points on different categories.
- 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 three 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, (2) to redeem through "Pay Yourself Back" feature and get 25% bonus value for categories that are subject to change - current and previous categories include dining, groceries, home improvement, Airbnb, and charity, and (3) 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. (3) Ennismore hotel privileges - receive 4th night free, food & beverage credit, and daily free breakfasts for two at Ennismore global portfolio hotels, including brands such as SLS, Mondrian, Delano, Hyde, Morgans Originals, Hoxton, and SO/. (4) $50 annual credit towards hotel booked through Ultimate Rewards. Unfortunately, LHRC, Visa Signature LHC, and Ennismore bookings are not eligible for this credit because they are not booked through Ultimate Rewards.
- 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, 2024. DashPass, normally $9.99 per month, offers $0 delivery fee and reduced service fees on food orders over $12 via DoorDash. (6) Up to $119 value with Instacart - receive complimentary 6-month instacart+ membership and earn up to $60 a year via a quarterly $15 statement credit through July 2024. (7) Up to $120 value with gopuff - receive a monthly $10 statement credit through December 2023.
- 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 in recent years.
- 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. 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 went away after December 2015; Chase introduced primary rental car insurance to compensate the loss. In August 2021, Chase finally revamped the card again by increasing travel through UR to 5x and dining & streaming & online groceries to 3x, adding 10% annual points bonus and $50 annual hotel credit, while keeping the $95 annual fee.
The Math
With the August 2021 enhancements, this card finally becomes incredibly competitive with a powerful 5-3-2-1 earning structure. Some detailed discussions on travel booked through UR which returns 5x points: it makes a lot of sense to book airfare (other than a few exceptions such as Southwest) to take advantage of the bonus, as the rates are the same as if you book directly with airlines and if you remember to add your frequent flyer number you will still earn miles and be recognized for your elite status; however, you may want to think twice before booking hotels, because several hotel programs won't allow points earning or recognize your elite status if you book through a third party; also be careful about car rentals, as you might not be able to apply certain coupons or promotions. Increasing dining earnings from 2x to 3x, Chase finally aligns Sapphire Preferred with non-fee Freedom Flex and Freedom Unlimited; to differentiate these products, Chase makes online groceries & streaming additional 3x categories for Sapphire Preferred while having drugstores for the Freedom duo.
Chase Sapphire Preferred vs. Chase Sapphire Reserve ($550): After considering the $300 annual travel credit, the Sapphire Reserve is $155 more than Sapphire Preferred. With that, you receive 5x additional points for Chase Dining & hotels & car rentals through UR and 1x additional points on travel not through UR, the increased fixed-value travel redemption value (1.5 vs. 1.25 cents), impressive travel privileges (airport, hotels, car rentals), and better consumer and travel protection. You need to do your own math, especially weighing 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 5.1-3.1-2.1-1.1. Both offer impressive rewards; in addition, since their bonus categories (Sapphire Preferred has travel & dining & streaming, while EDP has groceries & gas) and their transfer partners are so different, we actually think they are not direct competitors. As a matter of fact, they can be complementary to each other and be a great combo in your wallet.
Chase Sapphire Preferred vs. Citi Strata 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 5-3-2 bonus categories covering travel & dining & online groceries & streaming, while Strata Premier has 10-3 bonus categories covering travel & dining & groceries & gas and EV charging. You need to do your own math to see which one comes out ahead, but Strata Premier appears to be better for most consumers. 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
After more than five years since the last revamp, with the August 2021 enhancements, Chase Sapphire Preferred has finally been back to the game as one of our top recommendations (#2 overall, top 10 in signup bonus, #3 in rewards, #7 in protection).
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