Chase Sapphire Preferred® Card Review

The middle class is alive and well! Opportunities for young professionals are ever-expanding, and with this credit card, you can access an unbelievable opportunity to accrue travel rewards.

Picture this: you’ve worked hard the last 6 months. You’ve traveled for work on a regular basis. While on your trips, you’ve put all flight, taxi, hotel and dining expenses on your Chase credit card.

Of course, these are all business expenses that your employer will happily reimburse you for, while letting you keep the rewards points. Through all this, you’ve earned enough points for a domestic round trip flight. Time for a vacation!

Sign-up Bonus and Earnings Categories

Right now, you can sign up to the card and get the sign-up bonus mentioned above. Points accumulate in your Chase Ultimate Rewards account to be used for future travel-related or other purposes.

When using the card, you’ll accrue 2X points on travel and dining at restaurants & 1 point per dollar spent on all other purchases worldwide. Combine that with no foreign transaction fees, and this card makes for one of the most valuable travel rewards cards in general.

There are no limits on how many points you can earn or redeem, so spend away!

There is a $0 intro annual fee for the first year, but thereafter will cost $95 per year. Assuming you are using your card regularly, you should have no problem making up for this fee with rewards!

Bottom Line: Earn 2x points on travel and dining, and 1x points everywhere else for $95 a year (waived the first year) with the Chase Sapphire Preferred® Card.

Card Benefits: Chase Travel Portal and Ultimate Rewards

For the sign-up bonus, you can redeem up to $687.50 in travel from Ultimate Rewards – the Chase rewards portal – or you can make a 1:1 point transfer to leading airline and hotel loyalty programs.

Redeeming through Ultimate Rewards is a simple way to save some money on a typical flight. You’ll get 20% off using the travel portal when you book with points, and you’ll still earn loyalty points in your account!

If you transfer to an airline, you can squeeze even more value out of those points. At a minimum desired redemption of $0.02 per reward point, you could get $1,100 or more in travel value, depending on how you redeem!

Those points would be enough to get you a round trip ticket to Los Angeles or New York City for the weekend, but could be even more valuable booking a one-way international trip in business class!

It’s good to know there are no blackout dates or travel restrictions – as long as there’s a seat on the flight, you can book it through Chase Ultimate Rewards.

At any time, you can transfer reward points out of your account in increments of 1,000 to any of Chase’s partners (airlines and hotels, see below).

Also see here for 10 benefits of the card that you might not know about.

Bottom Line: With this Chase card, you gain access to the Chase Ultimate Rewards portal where you can redeem points, or access travel partners where points can be transferred at a 1:1 ratio.

Other Benefits: Insurances, Exclusive Events, and More

Providing simple ways to earn points for travel isn’t all this credit card can do. It also includes an array of other benefits that make it even more useful for travel purposes.

First, we’ll discuss the travel insurances. These include Trip Cancellation and Interruption, Auto Rental, Lost Luggage, Trip Delay, Baggage Delay, and Travel Accident Insurance.

Additional insurances include Purchase and Warranty protection. You also have access to a Travel Emergency Services hotline and Roadside Dispatch for emergency assistance when needed.

You can find more details on these in the Gritty Details section below.

As you can see, if things go wrong, your card could have you covered in a number of situations, so don’t forget to check your benefits if something does happen!

You’ll also get access to other things in the Chase Ultimate Rewards universe, such as Exclusive Events. These are VIP events that Chase curates for its members.

The Chase Shopping Portal is another perk since you can earn a ton of extra points for your Ultimate Rewards account by shopping there.

Bottom Line: An entire array of the card’s travel insurance benefits protect your travels, and you also get purchase protection, shopping opportunities, and exclusive events.

Card Drawbacks

However, this card isn’t all sunshine. It does carry an annual fee of $95 after your first year, but this is average compared to other travel rewards cards out there.

As with most of those others, though, the waived first year fee gives you an opportunity to get a lot of value out of the card before it costs you anything at all.

The minimum spend to get your sign-up bonus points is typically a little higher than other cards, though, which could be a problem for some people (especially if you’re only using it on travel expenses).

While this card earns in the general travel and dining category, note that this specifically excludes gas. So if you drive a lot, don’t expect this to be the highest earning points card there.

Next, we’ll say that if you are a benefits lover, this card is not for you. While it has great fringe insurances, it does not have the travel benefits of the Premier Rewards Gold Card from American Express or The Platinum Card® from American Express.

It also does not earn as many points as the Chase Ink Business Preferred℠ Credit Card or Chase Ink Business Cash℠ Credit Card can for business-related expenses (up to 3-5x).

The Blue Cash Preferred® Card from American Express also earns more in everyday expenses (3-6x in U.S. gas, supermarkets, and department stores), and you can’t get a big spend bonus like you do with The JetBlue Plus Card.

Overall, though, this card earns a great number of points in many different categories, so it is a great travel card for you travel lovers out there!

Bottom Line: While the Chase Sapphire Preferred® Card is a good card, you have an annual fee, a higher minimum spend to earn your bonus, don’t get 2x points for gas, and don’t have many extra card benefits like other travel cards do.

Card Rewards: Maximize Them

Like we mention in our other Chase Reviews, while this card is powerful on it’s own, it becomes even more powerful when combined with The Chase Freedom®, Chase Ink Business Preferred℠ Credit Card, and Chase Ink Business Cash℠ Credit Card.

With this combination, you’ll want to use the right type of card to do the right type of spending. If you can utilize the 2x-5x categories of these other cards on the items that you can’t earn 2x points on with the Chase Sapphire Preferred® Card, you will fill your Ultimate Rewards Account more quickly.

Final Thought

Regardless of the drawbacks, this card is perhaps one of the most popular airline or travel reward credit cards out there, for good reason.

It doesn’t have to be used on any specific airline, you can accrue reward points in many ways, you get awesome discounts through the Ultimate Rewards portal, and you can transfer points to your favorite loyalty programs at 1:1.

With the addition of all the travel insurances to protect your travels at no additional cost, you can rest easy and simply enjoy the rewards you earn.

Here on the blog, we call this card our favorite card for earning travel rewards. When combined with other Chase cards, your Ultimate Rewards Account can grow even more quickly!

Bottom Line: If you don’t know what card to get, starting with the Chase Sapphire Preferred® Card is an excellent option for its 2x points on travel and dining and access to great transfer partners.

• You travel frequently for work and pleasure utilizing airlines and hotels
• You dine out more than you cook at home
• Your travel includes domestic and international destinations
• You also use the Chase Freedom®, Chase Freedom Unlimited®, Chase Ink Business Cash℠ Credit Card, or Chase Ink Business Preferred℠ Credit Card.
• You use taxi services frequently (Yellow Cabs, Uber, Lyft, etc.) or other public transportation while traveling

• You use your own personal car for travel (gas isn’t included in the 2x points)
• You don’t eat out that often
• You don’t travel for work, or you have to use a work-issued reward credit card
• You don’t enjoy traveling all that much, and when you do, you usually you stay with friends

When traveling, make sure to use this credit card for vacation activities that fall into the travel category.

For instance, if you’re in Florida and want to take a Swamp Tour on the Everglades, you’ll get 2x points!

So far in this review, we’ve discussed general benefits of the card. Now let’s talk about earning points!

The key to a good points strategy is finding the most valuable methods for banking points on each of your cards. For cardholders, it can be as easy as spending in your 2x categories.

However, there are more ways to continue to earn extra points. Here are some of our favorite ways to earn points with Chase:

Earning Points

Tip #1:  Book all travel on this card; if you start splitting between multiple cards, you are likely going to lose out on extra points as this is a very rewarding card in the travel sector! (unless you’re using other Ultimate Rewards cards!).

Tip #2:  Earning points can be done with anything you can put on a credit card. You’ll earn 1x points even paying for things like utility bills, online shopping, online streaming, and other recurring monthly bills.

Tip #3:  Find potential flight deals while earning points by booking through the Chase travel portal.*

Tip #4:  Set up your card to pay for all your public transportation (taxis, Uber, Lyft, buses, trains, etc.). This also includes your tolls!

Tip #5:  Purchase snacks and other goods through your hotel room or on the plane in order to get it billed as travel, instead of purchasing at a convenience store.

Bonus Tip:  We’ve now put together a guide to earning 100k Chase points in just 90 days!

*Note:  While prices are typically the same, we strongly encourage you to compare flights from the portal with the airline site and a discount travel portal to ensure you’re getting the best deal.

See the Card Math section for details on how to calculate.

Earn Points By Using With Other Chase Cards

Combining your Chase Sapphire Preferred® Card with other Chase cards is valuable because it allows you to cover more categories at rates higher than 1x. While it may not seem like a lot, over a year the extra earnings REALLY add up!

Tip #1:  Get a Chase Freedom® and use it in your 5% categories each quarter, even if they are travel-related. The return on the 5% category for that quarter will be greater than the 2x points you’d otherwise earn.

Note that the Chase Freedom® Card rewards max out after $1,500 in spending, so continue to use your Chase Sapphire Preferred® Card for travel after reaching that point.

Tip #2:  Use a Chase Freedom Unlimited® to get 1.5% cash-back on all purchases, which is the equivalent of 1.5x points. This card is perfect to use in every instance where you wouldn’t get more than 1x points otherwise.

Tip #3:  Earn up to 5x rewards on office supplies, cell phones, landlines, internet, and cable using the Chase Ink Business Cash℠ Credit Card or Chase Ink Business Preferred℠ Credit Card. Internet services include things like GoDaddy.com and other web providers.

The Chase Ink Business Cash℠ Credit Card can also be used to earn 2x in gas.

Tip #4:  Along the lines of the previous tip, just make sure you are using your Ink Cards as much as you can. If you already have a business, you should be using these instead of another business card.

With the massive 5x earnings, you will be racking up travel rewards in no time. Especially if your business reward credit card earns no rewards, you should switch to one that does!

Other Earnings Methods: Shopping Portals and Partner Programs

While we have been focusing on ways to earn points utilizing the category bonuses on the card, we’ve been ignoring ways to earn points that are independent of these.

Tip #1:  Connect your card to MileagePlus Dining and other airline rewards extras to earn points both directly through the card (2x on dining) and through the airline partnership.

Miles earned vary by carrier, but these are added on top of your points earned with the card. The caveat is that it earns directly in the partnerships loyalty account.

Luckily, United MileagePlus is a partner of Chase Ultimate Rewards! Once you’re ready to transfer, you can send your Ultimate Rewards points into your MileagePlus account to meet back up with their buddies.

Southwest Rapid Rewards dining and IHG Priority Club dining are two other dining partners you could utilize that directly partner with Chase.

Tip #2:  Shop through the Chase Portal to find deals with everyday retailers where you could earn 3x-12x or more points, instead of the 1-2x you’d earn with just your Chase Sapphire Preferred® Card.

There are many retailers listed, including Wal-Mart, Microsoft, Dell, Apple, Bed Bath & Beyond, Groupon, Living Social, Vistaprint, and more!

If the retailer is under one of the higher earnings categories, be sure to use whichever Chase Ultimate Rewards card has the highest earning potential!

Past Ways You Could Earn Points

When Chase first came out with this card, there were a couple extra benefits that made this a points earning behemoth. Chase has since stopped them, but it’s worth mentioning so you can be on the lookout in case they come back.

Method 1: First Friday Dining. Members could earn 3x points in dining instead of 2x on the first Friday of every month.

Method 2: 7% Points Dividend. Members could earn a dividend equal to 7% of all points earned over the year. That means if you earned 100,000 points, you could earn a 7,000 point bonus!

Method 3: Earn 1x extra points by booking through the Chase Ultimate Rewards Portal. Using the portal gave you one extra point per dollar, no matter which Chase UR card you used.

Redeeming points earned with this credit card is the end game of the points strategy business. It pays to be smart with how you redeem your points so that you always maximize their value.

Luckily, Chase has some simple ways for you to utilize your points.

High Value Ways To Redeem Chase Ultimate Rewards Points

Below are the different ways to redeem your Chase Ultimate Rewards points:

Tip #1:  Book travel by redeeming points for cash in Chase Ultimate Rewards. By doing so, you save 20% on all available travel, which is typically the same as that available to the general public.

For instance, if you see a $300 ticket you want, you could spend just 24,000 points to book that instead of $300 in cash. See the Card Math section for details on when to use points or cash.

This method gives points a value of $0.0125, which is better than the standard $0.01 redemption.

Tip #2:  Transfer points to your favorite airline loyalty partner for use with redemptions through the airline or alliance. Travel can typically be redeemed for $0.02 or greater, depending on how you redeem.

One example: you could transfer miles to your British Airways Executive Club account, where you could then utilize the miles to book a Oneworld alliance flight.

A one-way international flight in business class costs approximately 60,000 points, depending on the airline. If we value this one-way business class flight at $4,000, the points are worth $0.067 each!

Low Value Ways To Redeem Chase Ultimate Rewards Points

In contrast to the above section, there are a few other ways you could redeem your points listed here. However, we don’t recommend utilizing these methods if you have another option, as they are lower value than those above.

• Direct cash-back on your accounts, i.e. statement credit (valued at $0.01 per reward point)
• Use points with Amazon (valued at $0.01 per point)
• Redeem in the Chase Merchandise Portal (valued at $0.01 per point or less)
• Chase Experience Portal (value varies; this may end up being more valuable to you than travel depending on the experience)

Chase’s main partners are the travel partners available to accept points transferred from your Ultimate Rewards account. But don’t forget the partners available in the shopping portal either, where you can earn large pools of points!

Travel Partners

Airline Travel Partners: Air France KLM, British Airways, Iberia, Aer Lingus, United Airlines, Singapore, Southwest Airlines, KLM Flying Club, and Virgin Atlantic.

Hotel Travel Partners: Hyatt, IHG Rewards Club, and Marriott.

Chase Ultimate Rewards Shopping Partners

Chase 2x Shopping Bonus:  Microsoft, Bed Bath & Beyond, Sam’s Club, Wal-Mart, Apple, Diapers.com, GiftCertificates.com

Chase 3x Shopping Bonus:  Living Social, Dell

Chase 4x Shopping Bonus:  Groupon, Aveda, Vistaprint

Chase 6x Shopping Bonus:  BackCountry.com

Chase 12x Shopping Bonus:  Restaurant.com

If you’re going to sign up to this credit card, you need to understand the math behind it. We’ll make it easy in our review by showing you how to use it to its fullest potential.

By utilizing our three fictitious families with a variety of income and spending, we will show how the math on the card could stack up over the year.

Recapping The Card Details

The annual fee costs 9,500 points in equivalent value. You can spend $4,750 in the 2x category to pay for the annual fee or $9,500 in the 1x category. Anything above that is bonus!

Of course, there’s also the current sign-up bonus of 50,000 points to consider.

Model Family Spending Details: Total Points and Value

Looking at the spending of our families in these categories over the year, we can see how many points they could earn. We’ll assume for this calculation that they use the card for all spending throughout the year.

*Example spending over the year with our model families. Table assumes ALL spending can be put on card.

The $0.01 per reward point value of the total collected points is $583, $883, and $1,430 yearly for the families, respectively for using this card over the course of the year.

At this level of spending, our families more than make up for the annual fees of the card, which as we said above is equivalent to 9,500 points.

Also, this model doesn’t even calculate in the sign-up bonus. So it appears the card has some good value. It’s important to keep in mind that it may not actually be possible to put all a family’s spending on the card, however.

If we just calculate what they would get for travel and dining, we get $260, $516, and $506. While not nearly as much, it still surpasses the annual fee. Likely, there would be a middle ground of expenses that they would actually pay for with the card.

Knowing this, let’s explore the value even further.

Amplifying the Value Using the Chase Travel Portal and Loyalty Partners

Considering the 20% discount on points for redeeming through the Chase Ultimate Rewards Portal, our families would earn even more value.

Furthermore, transferring to a travel partner allows you to utilize the points through their award flight redemptions. We suggest getting a minimum of $0.02 for a redemption, but they can go well over $0.08!

The following table summarizes the value of the points, taking into account these values:

*Travel value of using the Chase Sapphire Preferred® Card for a year at the above spending.

This is a pretty good return on the investment. If you only put your travel/dining spending on the card, you would certainly earn much less in the points department, but even getting one flight’s worth of points can be valuable.

Your value can obviously stretch even further using the loyalty partner transfers, although of course it may not always be possible or practical.

Counting in the sign-up bonus just adds an additional value to the first year.

When To Use the Travel Portal

Deciding when to use the travel portal can be a little tricky to think about. Is it always the best deal? Are the points getting used to their best value? Is it better to book the flight with cash and earn more points?

In this section, we’ll help you decide that. The very first thing to say is that you should never blindly book in the portal without checking prices outside.

We recommend checking the portal, checking directly with your airline(s) of choice, and checking through a discount travel portal such as the ITA Matrix or Kayak.

Following this method ensures you’ll have three quick points of reference. Typically you’ll see that the prices are similar, but not always.

1. If the prices are the same, purchase through Chase’s Travel Portal if you wish.
2. If the prices are different, book with the cheapest portal (obviously still using your rewards card).

The Chase Travel Portal: When To Use Cash or Points

Since there are no calculations that can really show what the best choice is, this is more of a personal preference. However, you can always just redeem if you don’t want to spend cash at the time!

Rule of thumb #1: Always book with cash instead of using points if it’s a discount or average-price ticket.

If you’re already getting a discount, then there’s no reason to need the additional 20% off at the time. Save your points and the 20% discount for a time when you have to book a flight at an above-average price.

While you could argue either way, following this system is just a good rule of thumb. It all evens out in the end, but it just feels better to not have to spend more money on a gouged price.

Rule of thumb #2: Never use the portal for international travel.

This is because points can be redeemed for a minimum of $0.02 when transferred to loyalty partners for international travel. The Chase Portal points are only worth $0.0125.

Using Other Chase Cards In Combination

We’ve already done calculations for how you can use the cards together in the other Card Math sections for the Chase Freedom®, Chase Ink Business Preferred℠ Credit Card, and Chase Ink Business Cash℠ Credit Card.

Your individual combination will depend on your level of spending, the categories you spend in, and how much effort you’re willing to put in to get the most points.

In general, having the Chase Freedom® and Chase Ink Business Cash℠ Credit Card make it easy, as these cards are no annual fees and simply add 2-5x points in certain categories that the Chase Sapphire Preferred® Card can’t earn.

For instance, you could set your cell phone bill to autopay with your Chase Ink Business Cash℠ Credit Card and earn 5x points for that each month versus the 1x points on the Chase Sapphire Preferred® Card.

If your cell phone costs $100 every month, then you could earn 6,000 points with the Chase Ink Business Cash℠ Credit Card versus 1,200 points with the Chase Sapphire Preferred® Card, and it costs you nothing.

You would gain 4,800 points in this scenario, worth a minimum of $48 at $0.01 value, $60 at $0.0125 value (Chase travel portal), or even over $96 (transferring to travel partners). If that’s worth getting the card and setting up autopay, then by all means do it!

Bottom Line: There are many different things we could calculate, but the end result is that using cards that earn more and cost nothing will always add value if utilized consistently along with the Chase Sapphire Preferred® Card.

Card Math Conclusion and Final Thoughts

Our review has gone over how to utilize the benefits, earn points, and calculate the math of the card. Even with just a moderate amount of spending, you will easily find value with this powerful Chase card.

At the level of spending of the Kennedys, you can get at least $260 of value in the card per year. Subtracting the $95 annual fee, that’s an extra $165 to spend on travel during the year for very little effort.

If you spend more than that or put more in general on the card, the value only continues going up (especially if you utilize the Chase travel portal and transfer options).

Combining this with the current sign-up bonus and utilizing the other Chase Ultimate Rewards cards to maximize your value, you have quite the ability to create a travel strategy with your points.

Bottom Line: The Chase Sapphire Preferred® Card is our favorite card to use because the potential value is enormous, and it’s easy to earn points in travel and dining if you are already a traveler.

Just as with everything, though, there are exceptions to the rule. Most times when you buy something with this card, it will count as a purchase.

However, points are not earned for balance transfers/cash advances, foreign travel necessities such as traveler’s checks, foreign currency, money orders, or wire transfers.

It also isn’t applicable to gambling which includes casinos, lottery tickets, or other betting transactions (basically steer clear of Vegas!). You also won’t earn points on any checks, overdrafts, interest, unauthorized charges, or any other fees.

Any Ultimate Rewards points you do earn will be combinable with other Chase cards you already own, as well as with those of a partner or spouse.

Note that the merchant you purchase from must have its vendor code from Visa set in the travel or dining category for you to earn the 2x points.

Even if the merchant’s business seems to be in one of these two categories, if it is not coded as such you won’t earn the points (and no amount of negotiating will get them to you).

Chase answers any questions about rewards categories in its Rewards FAQ.

Other Unique Features

Here are more details on the fringe benefits of the card, travel insurance, and so on.

Exclusive Sapphire Events and Experiences – This benefit gives you access to many different events exclusively available to cardmembers. Check the site to find out what’s available.

Travel Accident Insurance – In the unfortunate event of an accident on a common carrier (bus, train, etc.), you can get coverage for up to $500,000 in expenses and costs.

Travel Emergency Services – When you’re traveling and need emergency help, call this line to find someone who can speak your language and find you assistance for anything from medical referrals to legal help.

(You will be responsible for paying for any third-party service you accept; it’s just finding help that’s free.)

Global Lifeline – In a pickle, you can get an emergency cash advance and even a new card delivered to your location! The cash advance only applies if you still have your card.

If your card is lost, a new card can be delivered to you in the U.S. in 1-2 business days, or internationally in 2-7 days.

Zero Liability Protection – For any unauthorized charges on your account, you will be free from liability.

Trip Cancellation & Interruption Protection – If you or a family member gets sick or the trip is cut short by weather or other situations out of your control, you can get up to $10,000 in refunds.

Eligibility assumes the original purchase was paid for through your card, and it only applies to non-refundable charges like hotels, airfare, and more.

Auto Rental Collision Damage Waiver – When you rent a car, you get coverage up to the actual cost of the vehicle you are driving, both in the U.S. and abroad.

Even more amazing is that this is primary insurance, meaning that you can collect from them first rather than going through your own insurance.

(Most travel insurance from this credit card and other cards is secondary.)

Lost Luggage Reimbursement – In the event your luggage gets lost or damaged during travel, you can get up to $3,000 in reimbursement per person (for anyone’s ticket you paid for with your card).

Baggage Delay Insurance – If your bag is simply delayed, you can get reimbursed up to $100 a day for five days to buy replacement items in the meantime. This benefit is available if the bag is delayed more than six hours.

Trip Delay Reimbursement – Sometimes, trips just don’t go as planned. When your travel gets delayed by more than 12 hours, or you are required to stay overnight, you can get covered.

For any uncovered or unreimbursed expenses, this insurance covers up to $500 per ticket that is delayed.

Purchase Protection – Chase will cover your purchases for up to $500 per incident in the case of damage or theft for the first 120 days after the item is purchased, and you have a $50,000 per account maximum.

Extended Warranty – For a warranty that lasts three years or less, Chase will expand the warranty of the item by one extra year.

Chase BluePrint – The BluePrint is a set of tools available to you from Chase that helps you manage your account and expenses.

Photo Credits / Credit/Copyright Attribution:

Business Team Earning Rewards: Andresr/Shutterstock
Swamp Tour Boat: oneinchpunch/Shutterstock
Shopping Online with Card: Syda Productions/Shutterstock
Choosing Her Card: MoQcCa/Shutterstock