Expert after expert sings the praises of one travel card above all others: The Chase Sapphire Preferred. There are plenty of reasons to see why. You get access to critical travel benefits and protections for a relatively low $95 annual membership fee. Best of all: you can use the Ultimate Rewards program – a versatile travel points program that may boost your award travel rewards.
A Little History
As I write this, I received approval for the Chase Sapphire Preferred card. Getting this card has been a long time coming. I wanted to get a travel credit card to embark on my passion for traveling. Well, at least make it a bit easier anyway. You may be like me. You want more time, money, and pleasant things in life. Whatever it may be. For me, I just added travel to my list.
A travel card, in my mind, makes luxury achievable for mere mortals. And there was a solid card for this purpose—the Chase Sapphire Preferred.
That’s what everyone on YouTube kept saying anyway. But were they right?
Now, Chase has positioned its cards as competitors to American Express and Capital One’s offerings. American Express has this reputation for being for older and rich folks. An exclusive club out of reach for the average person. Some people who seek to get AMEX cards whisper of a higher bar for approval. Whether this is true or not, it doesn’t matter. The reputation is there. Chase exploited this reputation and targeted its offerings to millennials and even younger.
This tactic raises a simple question: Is the Chase Sapphire Preferred THE choice for mid-tier travel rewards? Or is the card just the latest card to take more than it gives consumers?
Let’s find out.
For whom is the Chase Sapphire Preferred a good fit?
The Chase Sapphire Preferred is for frequent fliers and casual travelers. The card brandishes a $95 membership fee which is reasonable regarding cost. Therefore, the CSP is a great card for beginners dipping their toes into travel credit card rewards.
Furthermore, making the Chase Sapphire Preferred one of your first cards is a good move. Chase has a so-called 5/24 rule. This policy states you cannot have opened five or more personal credit cards across all financial institutions in the last 24 months. The rule applies to card approvals from Chase, but the count includes ALL credit cards from all financial institutions. The 5/24 rule means obtaining Chase cards early in your credit card rewards journey is essential. If your try later when you have several cards, Chase may deny your application.
Chase Sapphire Preferred sign-up bonus
You will earn a 60,000 sign-up bonus after you spend $4,000 on purchases in the first three months from account opening. Common valuations estimate state this is worth close to $1,000 when used at Chase’s portal. This amount can rise if you use Chase’s transfer partners.
The Main Goodies
• The 60,000 sign-up bonus
• $50 annual hotel credit
• 10% annual points bonus
• DoorDash
• No foreign transaction fees
• Travel Protections
Furthermore, this card is an excellent option for travel bookings because of the several travel and purchase protections the card grants. Some of the prominent protections include:
• Primary rental car coverage.
• Trip cancellation and delay insurance.
• Baggage protections.
• Purchase protection.
• Extended warranty protection.
• Roadside dispatch
• Travel accident insurance
How to earn points
Here is how you can maximize your rewards. You will receive:
• Five points per dollar on travel booked through the Chase travel portal.
• Five points per dollar on Lyft (through March 2025).
• Three points per dollar on dining, select streaming services, and online grocery store purchases (excludes Target, Walmart, and wholesale clubs).
• Two points per dollar on all travel purchased outside the Chase travel portal.
• One point per dollar on everything else.
How does the competition compare?
One competitor comes to mind immediately: Capital One’s Venture Rewards Credit Card. Here is the breakout for Capital One’s offering. You will receive:
• 75,000 bonus miles when you spend $4,000 on purchases in the first three months from account opening.
• Five miles per dollar on hotels and rental cars booked through Capital One’s travel portal.
• Two miles per dollar on all purchases.
• Ability to redeem miles at a flat rate of 1 cent each toward travel purchases.
• Up-to-$100 statement credit toward Global Entry or TSA PreCheck.
• Travel accident insurance.
• Extended warranty protection.
The Venture Rewards card enables cardholders to transfer miles to valuable airline and hotel partners. In addition, this card does not charge foreign transaction fees. The card has a $95 annual fee like the Chase Sapphire Preferred.
So, does the Chase Sapphire Preferred yield enough benefits to cover the annual fee?
Consider the Chase Sapphire Preferred if:
• The CSP is your first travel credit card.
• You can achieve the $4,000 spending limit for the 60,000-point sign-up bonus.
• You want solid travel protections.
• You want a minimal annual fee for good benefits.
Don’t forget to apply this simple rule when pondering whether to choose the CSP or not:
Choose the card that works for your life. Don’t change your life for a credit card; make the card conform to your life.
This principle will make your choice easier. Because you will scrutinize each card option based on your real lifestyle, not your aspirations, you will maximize your value.
Is this travel credit card right for you?
If you want a solid entry into flexible travel reward credit cards, the Chase Sapphire Preferred is a solid choice. This card can be of use to anyone if they offset the $95 fee with the benefits the card affords.
If you enjoyed this article you might like to view my review of Mastercard Black Card.
