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Is Sapphire Preferred a Good Card? A Deep Dive

Yes, the Chase Sapphire Preferred® Card is undeniably a very good card for many people, striking a compelling balance between valuable travel rewards, manageable annual fee, and user-friendly benefits. It’s a particularly excellent choice if you’re new to the travel rewards game but want to start racking up serious points that can be redeemed for flights, hotels, and more.

Understanding the Sapphire Preferred Appeal

The Sapphire Preferred isn’t just another credit card; it’s a gateway to a world of travel possibilities. The card is geared toward travelers who are seeking a blend of rewards, flexibility, and value without the premium price tag of more luxurious travel cards. But just because it’s accessible doesn’t mean it’s simplistic. It packs a punch, offering a robust earning structure and redemption options that can significantly offset the annual fee (more on that later).

The Earning Powerhouse: Points and Bonuses

Let’s talk about the core of any good travel card: earning points. The Sapphire Preferred excels here, offering:

5x points on travel purchased through Chase Ultimate Rewards: This includes flights, hotels, car rentals, activities, and cruises. Booking directly through Chase is often the most lucrative way to use this benefit.
3x points on dining: From your morning coffee to a fancy dinner, every meal counts.
3x points on select streaming services: Entertainment expenses turning into travel rewards!
3x points on online grocery purchases: A great way to earn everyday rewards.
2x points on all other travel purchases: This covers purchases like toll and parking fees.
1x point on all other purchases.

These earning categories are thoughtfully designed to cover common spending habits, ensuring you’re consistently accumulating points without having to jump through hoops. Coupled with the often generous sign-up bonus (which frequently hovers around 60,000-80,000 points after meeting minimum spending requirements), this card gets you off to a flying start.

The Redemption Game: Maximizing Your Points

Earning points is only half the battle; the true value lies in how you redeem them. The Sapphire Preferred offers multiple redemption options:

Chase Ultimate Rewards Portal: Redeem points for travel, gift cards, or cash back directly through the Chase portal. Travel redemptions receive a 25% bonus, meaning your points are worth 1.25 cents each.
Transfer Partners: This is where the Sapphire Preferred truly shines. Transfer your points to a variety of airline and hotel partners, often unlocking even greater value. Partners include United Airlines, Hyatt, Southwest Airlines, and more. The magic here lies in finding sweet spots in their respective award programs.
Pay Yourself Back: Use your points to offset purchases in select categories (often dining, home improvement, or grocery stores) and get 1.25 cents per point value.
Statement Credits: A simple way to redeem points for a direct statement credit. This usually has a lower value than other redemption options.

The ability to transfer points to travel partners is a major advantage, allowing you to leverage award charts and potentially snag flights or hotel stays that would otherwise cost significantly more.

The Perks and Protections: More Than Just Points

Beyond earning and redeeming, the Sapphire Preferred offers a suite of valuable benefits:

Travel Insurance: Including trip cancellation/interruption insurance, baggage delay insurance, and auto rental collision damage waiver. This provides peace of mind on your travels.
Purchase Protection: Covers new purchases against damage or theft for a certain period.
Extended Warranty Protection: Extends the manufacturer’s warranty on eligible purchases.
No Foreign Transaction Fees: A must-have for international travelers.

These perks can save you money and provide valuable protection, adding another layer of value to the card.

The Bottom Line: Is It Worth It?

For many, the answer is a resounding yes. The Sapphire Preferred strikes an excellent balance between rewards, benefits, and a reasonable annual fee. If you’re a travel enthusiast who wants to earn valuable rewards without breaking the bank, this card is a top contender. However, it’s essential to assess your own spending habits and travel goals to determine if it’s the right fit for you.

Frequently Asked Questions (FAQs)

Here are 12 frequently asked questions to give you a more holistic view of the Chase Sapphire Preferred Card:

1. What is the annual fee for the Chase Sapphire Preferred card?

The annual fee is $95. While it’s not a no-annual-fee card, the rewards and benefits can easily offset this cost for many users.

2. What credit score is needed to qualify for the Sapphire Preferred?

A good to excellent credit score is typically required, generally a FICO score of 670 or higher. However, Chase also considers your overall credit history and relationship with them.

3. How long does it take to get approved for the card?

Approval can be instantaneous, but sometimes it can take a few days or even weeks, especially if Chase needs more information.

4. Can I upgrade my existing Chase card to a Sapphire Preferred?

Yes, you can upgrade from many Chase cards, such as the Chase Freedom Unlimited or Chase Freedom Flex. However, you typically won’t be eligible for the sign-up bonus if you upgrade.

5. How do I maximize my points when transferring to travel partners?

Research! Identify sweet spots in each partner’s award chart. For example, Hyatt is known for offering exceptional value for its points, especially at high-end properties.

6. What happens if I cancel my Sapphire Preferred card?

You’ll lose any unredeemed points unless you have another Chase card that earns Ultimate Rewards points. You can transfer your points to another card before canceling.

7. Can I apply for the Sapphire Preferred and the Sapphire Reserve at the same time?

No. Chase has a “one Sapphire card” rule, meaning you can only hold one Sapphire-branded card at a time.

8. Is the Sapphire Preferred better than the Sapphire Reserve?

It depends on your spending and travel habits. The Reserve has a higher annual fee but offers more premium benefits, such as a $300 annual travel credit and airport lounge access. If you travel frequently and can utilize these benefits, the Reserve might be a better fit. The Preferred is best for those that are looking for a lower annual fee.

9. How does the Sapphire Preferred compare to other travel rewards cards?

It’s a strong contender in the mid-tier travel card category. Other options to consider include the Capital One Venture Rewards Card or the American Express® Gold Card, each with its own strengths and weaknesses.

10. What is the 5/24 rule and how does it affect my application?

The Chase 5/24 rule means that if you’ve opened five or more credit cards (from any bank) in the past 24 months, Chase is unlikely to approve your application. This is a critical factor to consider before applying.

11. How can I redeem points for maximum value?

Transferring to airline and hotel partners often yields the highest value, but it requires some research and flexibility. Booking through the Chase Ultimate Rewards portal with the 25% bonus is another excellent option.

12. Can I use my Sapphire Preferred for everyday purchases, or is it strictly for travel?

While the card excels at travel rewards, it’s perfectly fine to use it for everyday purchases, especially in bonus categories like dining and online groceries. This will help you accumulate points faster and maximize your rewards. Just make sure you’re paying off your balance each month to avoid interest charges.

Ultimately, the Chase Sapphire Preferred is a well-rounded travel rewards card that offers excellent value for its annual fee. By understanding its benefits and using it strategically, you can unlock a world of travel possibilities.