The Reasons the Chase Sapphire Preferred Should Be Your Next Credit Card

4 days ago 7

Picking a new credit card can feel impossible when you're not sure what type of card you want. Perhaps you want to ease into travel rewards, but you're not quite ready to commit to a specific program. Or maybe you want the option to earn cash back on regular spending, but you can't decide how you'd prefer to redeem your rewards.

In this case, a card with decent general rewards and elevated travel rewards, like the Chase Sapphire Preferred® Card, can be an excellent fit. This card's flexible rewards make it a bit of a unicorn of the card world since it offers both travel benefits and rewards flexibility without sacrificing the chance to earn cash back.

With the Chase Sapphire Preferred, get up to $1,050 in Chase Travel℠ value. Earn 60,000 bonus points after $4,000 in purchases in your first 3 months from account opening. That's worth $750 when redeemed through Chase Travel. Plus, get up to $300 in statement credits on Chase Travel purchases within your first year.

6 benefits of the Chase Sapphire Preferred

1. Elevated travel rewards through the Chase portal

The first reason to consider the Chase Sapphire Preferred as your next card is that you can test out travel rewards without paying a massive annual fee. This card lets you book travel through the Chase portal directly with points, and you'll get 25% more value for your rewards when you do so.

The Chase travel portal is easy to use. All you have to do is search for the airfare, hotel stay, car rental and other travel experience, then decide if you want to pay with points, cash or a combination of the two.

2. Ability to transfer points to partners

The Chase Sapphire Preferred also lets you transfer your points to Chase airline and hotel partners at a 1:1 ratio. Partners include options like British Airways, Southwest Rapid Rewards, United MilagePlus, Marriott Bonvoy and World of Hyatt, and you can often get outsized rewards value when you transfer points to partners before making a redemption.

Let's say you wanted to book a hotel stay in Miami, Florida, and you had a stash of Chase Travel rewards points to spend. You could always check hotels in the Chase portal first, but if you don't find the deals you're hoping for, consider transferring your points to one of the three hotel brands that Chase partners with -- IHG One Rewards, Marriott Bonvoy or World of Hyatt.

For example, I could book a room at the Hyatt Regency Miami for 15,000 points or $311 per night. If I transferred 15,000 Chase points to your World of Hyatt account to make this booking, I would be getting more than 2 cents per point in value for your rewards.

3. Excellent nontravel redemptions for rewards

Another important benefit of the Chase Sapphire Preferred is that you can redeem your rewards for nontravel options without sacrificing points value. The Sapphire Preferred offers a standard redemption rate of one cent per point for a range of nontravel redemption options, including cash back or statement credits. This isn't always true with other rewards programs (including American Express Membership Rewards).

Meanwhile, most gift card redemptions offered through Chase all come with the same rate of one cent per point, or better since Chase frequently has gift card sales.

While discounted gift card options through Chase change all the time, you can usually choose from at least 10 different gift card options that are 10% off with points. So, a $25 gift card may only set you back 2,250 points, while some $10 gift cards start at 900 points.

4. Stellar rewards rates on everyday spending

In addition to serious rewards redemption flexibility, the Chase Sapphire Preferred offers some of the most competitive earning rates for the way many people spend.

First, if you earn the Chase Sapphire Preferred's welcome bonus, you'll start off with a hefty points balance. This card also offers 5x points on travel booked through Chase Travel℠, 5x points on Lyft rides (through March 31, 2025), 3x points on dining, online grocery purchases (excluding Target, Walmart, and wholesale clubs) and select streaming services, 2x points on other travel purchases and 1x points on everything else.

5. Basic travel protections

If you're looking for a credit card with some travel insurance perks built in, the Chase Sapphire Preferred is one of the affordable options.

You get:

Trip cancellation and interruption insurance worth up to $10,000 per eligible traveler and up to $20,000 per covered trip
Primary auto rental collision damage waiver coverage worth up to the actual cash value of the rental vehicle
Baggage delay insurance worth up to $100 per day for up to five days (six-hour delay or longer required)
Trip delay reimbursement worth up to $500 per ticket
Travel and emergency assistance services

Chase also throws in a few consumer protections for purchases. These include extended warranty coverage on items that come with a manufacturer's warranty and purchase protection against damage or theft worth up to $500 per claim and up to $50,000 per account.

6. A reasonable annual fee

The Sapphire Preferred will set you back just $95 per year, whereas most other cards with flexible rewards that transfer to airlines and hotels will cost you anywhere from $250 to $695 annually.

It's easy for many to justify this low annual fee, especially if you earn the welcome bonus. If you get accustomed to using travel rewards and decide you want premium perks like airport lounge access later on, you could always upgrade to a card with a higher annual fee. Its older sibling, the Chase Sapphire Reserve®, offers more premium travel rewards and costs $550 per year.

How to apply for the Chase Sapphire Preferred

You typically need good credit or better to qualify for the Sapphire Preferred -- typically a FICO score of 670 or higher. Your approval odds may increase if you have a higher score and strong income.

If you think you're eligible, here's how to apply:

Step 1: Fill out the online application. Head to the Chase website, find the Chase Sapphire Preferred, and click "apply now."
Step 2: Share personal information. The application for this card requires you to share your full name, address, mother's maiden name and date of birth.
Step 3: Complete the application. Other information required during the process includes your Social Security number (SSN), employment status and household income.
Step 4: Wait to see if you're approved. Submit your application and wait to see if you're approved. Chase may be able to approve your application in a matter of minutes, but they can also say they need more time to consider your application. In that case, you'll hear from them via email or regular mail within 30 days.

The Bottom Line

The Chase Sapphire Preferred is a versatile rewards credit card that complements many different spending habits. It has a reasonable annual fee, endless possibilities for rewards, great earning potential and some built-in perks you can actually use. If you're not ready to plunge fully into a travel rewards ecosystem, the Sapphire Preferred is a nice starter travel card with better perks and redemption options than many of its contemporaries.

Like all credit cards, you'll only get the best value from this card if you pay your balance in full each month. If you need to carry debt from one month to the next, consider a low-interest credit card or one that offers an introductory APR for a limited time.

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