Who benefits most (and least) from the Chase Sapphire Preferred Card?
Of all the rewards credit cards intended for frequent travelers, the Chase Sapphire Preferred® Card perhaps the best known. The card is a favorite for those who want use their rewards primarily for travel. Chase Ultimate Rewards® points earned from daily spending can be used towards almost any airline ticket through the Rewards Travel Portal or transferred to over a dozen domestic and international travel partners.
While the benefits may seem significant, the Chase Sapphire Preferred® Card the card is not the right choice for everyone. Those who don’t plan on regular trips or plan to carry balances on their card could see their rewards devalue quickly.
Is the Chase Sapphire Preferred® Card the right card for you? Read on to find out which type of people benefit the most (and the least) from this wanted card.
Chase Sapphire Preferred: An Overview
With an annual membership fee of $ 95, the Chase Sapphire Preferred® Card is the star of the bank’s line of credit cards. Cardholders earn 2 points for every dollar spent on travel when they use their card to pay for airline tickets, hotels, rental cars and more. Plus, they earn 2 points per dollar spent in restaurants, from fast food to fine dining.
In addition to earning double the reward points for travel and catering transactions, frequent travelers also have access to a number of travel insurance benefits when they pay for their trip using the card or Ultimate Rewards® points. These benefits include:
Trip cancellation / interruption insurance: Up to $ 10,000 in reimbursement of prepaid, non-refundable travel expenses for covered situations. The reasons include illness and inclement weather.
Rental Vehicle Collision Waiver: Primary insurance coverage, which provides reimbursement up to the actual cash value of the vehicle for theft and collision damage for most rental cars in the United States and abroad.
Baggage delay insurance: Reimburses you for essential purchases in the event of a baggage delay of more than six hours by an airline, up to $ 100 per day for five days.
Reimbursement of travel delay: If your common carrier (plane, train, bus, etc.) is delayed for more than 12 hours or requires an overnight stay, you and your family are covered for unreimbursed expenses, such as meals and accommodation, up to $ 500 per ticket.
Frequent travelers get the most benefits
With so many travel-focused benefits, frequent travelers (or those who want to travel more) are making the most of the Chase Sapphire Preferred® Card. The 2 point rewards for every $ 1 spent in two common categories (travel expenses and meals) make earning points very easy. Additionally, the Shop Through Chase portal allows cardholders to earn even more Ultimate Rewards® points when using their qualifying credit card at participating retailers.
When it comes time to book travel, these points can be redeemed directly through Chase or with another partner airline or hotel. Although travelers can get more value by transferring their points to one of the nine airlines or four partner hotels, they can get a value of 1.25 cents per point when making reservations on the Ultimate Rewards travel site.
More importantly, many of the travel insurance benefits on the card only apply to those who redeem their points directly through the Ultimate Rewards® site. If the cardholder’s trip is paid for with Ultimate Rewards® points, available credit on the card, or a combination of both, travel insurance benefits may apply. However, it does not apply to award trips purchased by Ultimate Rewards® that have been transferred to a partner.
Chase Sapphire Preferred complements other cards
Chase offers several consumer and business cards that also earn cash back rewards or Ultimate Rewards® points. the Chase Sapphire Preferred® Card is a great companion for these cards, as cash back rewards can easily be converted into Ultimate Rewards® points.
On the consumer side, the Chase Freedom Flex℠ and Chase Freedom Unlimited® cards earn cash back. But when a cardholder also has the Chase Sapphire Preferred® Card, cash back can be converted to Ultimate Rewards® points at a rate of 100 Ultimate Rewards® points for $ 1 cash back. This creates additional value on spending the 5X bonus categories on the Chase Freedom Flex℠ card every quarter.
Small business owners can also cash in additional Ultimate Rewards® points. Those with the Ink Business Cash® credit card credit card can also convert their rebate into points at the same rate of 100 Ultimate Rewards® points for $ 1 credit card.
People with a balance get the least benefit
While all of these benefits may sound interesting, the Chase Sapphire Preferred® Card may not be the best card for everyone. Cardholders who typically take longer to pay off their balances might find that they don’t get as much of their rewards over time as the rewards cards cost more in overall interest and can devalue the points earned.
Because the Chase Sapphire Preferred® Card is a rewards card, it comes with a higher interest rate on balances (The current APR is 15.99% to 22.99% variable APR). The higher your credit card balance, the more interest you will pay the bank, which in turn compromises the value of your reward. If you plan to pay off a purchase over several months, consider using a low interest credit card rather.
Users can only get one Chase Sapphire card
While the two Chase Sapphire Preferred® Card and Chase Sapphire Reserve® are good cards, bank policy restricts cardholders to having only one Chase Sapphire account. So does it make sense that you get the Chase Sapphire Preferred® Card if the Chase Sapphire Reserve® could offer more rewards?
the Chase Sapphire Reserve® is best for travelers who can maximize all the benefits of the card to offset the $ 550 annual subscription, including Priority Pass Select subscription and statement credits for either TSA or Global Entry preclearance. For those who still want to travel and earn rewards for their daily expenses, but won’t travel enough to justify a high annual fee, the Chase Sapphire Preferred® Card could be better suited.
Are you making the most of the right card?
Even the best travelers can limit their potential return with the Chase Sapphire Preferred® Card. For those looking for more rewards, the Chase Sapphire Reserve® may be a better overall option.
Before deciding whether the Chase Sapphire Preferred® Card is the right card for your travel needs, consider your lifestyle and how much you plan to spend with the card. The benefits are great, but if you can’t use them, you could instead lose money on the annual fee. Before asking for any of these cards, ask yourself these three questions:
Can I maximize the reward categories?
With 2X points per dollar spent on travel and meals, the Chase Sapphire Preferred® Card offers solid earning opportunities on the road. When combined with another Chase card, this can turn into major Ultimate Rewards points through smart spending. If you have the discipline to capitalize on the right expenses at the right time, then the Chase Sapphire Preferred® Card can be a smart addition to your wallet.
Will I make the most of the points?
Points are only valid if you can use them for real rewards. If you can’t redeem your points for travel, either through the Ultimate Rewards site or through a transfer partner, you may be leaving value on the table. If traveling isn’t your primary goal, consider a credit card with cash back rather.
Will I get more from another card?
Consider all the trips you end up taking from year to year. If you plan to visit many destinations by air and land, it may be worth using the Chase Sapphire Reserve®. But if you only care about earning points to save on vacations every year, then the Chase Sapphire Preferred® Card perhaps the best card.
Although it offers great benefits and rewards, the Chase Sapphire Preferred® Card is not for everyone. Before you apply, do some research to determine if this is the right addition to your portfolio.
How to Maximize Your Rewards
You want a travel credit card that prioritizes what’s important to you. Here are our choices for the best travel credit cards of 2021, including those that are best suited: