Why I’ll Never Close My Chase Sapphire Preferred Card

Even though I have over 30 active credit cards, each serves a unique purpose. Whether it’s a free hotel night certificate, airport lounge access, car rental insurance, or a free checked bag, I have a card for almost every situation.

However, managing a portfolio of cards comes with a significant cost — over $2,500 in annual fees. Every year, I review my cards to see if they still offer enough value to keep. While many cards stay on the “keep” list, some are no-brainers, like the Chase Sapphire Preferred^® Card.

I’ve had the Chase Sapphire Preferred card for more than 8 years now, and it was my first travel rewards credit card — as it is for so many others. It offers a long list of benefits and a fantastic rewards structure, making it a well-rounded travel credit card.

Here’s why I’ll never part ways with my Chase Sapphire Preferred card.

Chase Sapphire Preferred Card Overview

BEST BEGINNER CARD

Chase Sapphire Preferred^® Card

U.P. Rating 

The rating for this card has been determined by our own industry experts who know the ins and outs of credit card products. Bonuses, rewards as well as rates and fees are all taken into account. Compensation from the issuer does not affect our rating. We only recommend products we either use ourselves or endorse.

A fantastic travel card with a great welcome offer, good benefits, and perks for a moderate annual fee.

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Chase Sapphire Preferred^® Card

A fantastic travel card with a great welcome offer, good benefits, and perks for a moderate annual fee.

Welcome Offer

Earn 60,000 bonus points after you spend $4,000 on purchases in the first 3 months from account opening.

60,000 bonus points

UP's Bonus Valuation*:

$1,200

Annual Fee

$95

APR

20.49% - 27.49% Variable

Credit Recommended

Upgraded Points credit ranges are a variation of FICO^®Score 8, one of many types of credit scores lenders may use when considering your credit cardapplication.

Good to Excellent (670-850)

Why We Like This Card

The Chase Sapphire Preferred^® card is one of the best travel rewards cards on the market. Its bonus categories include travel, dining, online grocery purchases, and streaming services, which gives you the opportunity to earn lots of bonus points on these purchases.

Additionally, it offers flexible point redemption options, no foreign transaction fees, and excellent travel insurance coverage including primary car rental insurance. With benefits like these, it’s easy to see why this card is an excellent choice for any traveler.

Pros & Cons

Pros

• 5x points on all travel booked via the Chase Travel portal
• 5x points on select Peloton purchases over $150 (through March 31, 2025)
• 5x points on Lyft purchases (through March 31, 2025)

Cons

• $95 annual fee
• No elite benefits like airport lounge access or hotel elite status

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Card Highlights

• Earn 60,000 bonus points after you spend $4,000 on purchases in the first 3 months from account opening.
• Enjoy benefits such as 5x on travel purchased through Chase Travel℠, 3x on dining, select streaming services and online groceries, 2x on all other travel purchases, 1x on all other purchases, $50 Annual Chase Travel Hotel Credit, plus more.
• Get 25% more value when you redeem for airfare, hotels, car rentals and cruises through Chase Travel℠. For example, 60,000 points are worth $750 toward travel.
• Count on Trip Cancellation/Interruption Insurance, Auto Rental Collision Damage Waiver, Lost Luggage Insurance and more.
• Get complimentary access to DashPass which unlocks $0 delivery fees and lower service fees for a minimum of one year when you activate by December 31, 2027.
• Member FDIC

Financial Snapshot

• APR: 20.49% - 27.49% Variable
• Foreign Transaction Fees: None

Rewards Center

Chase Ultimate Rewards

Although no specific credit card is best for all situations, some are better than others. The Chase Sapphire Preferred card is one of the best travel credit cards on the market, thanks to its incredible benefits.

Aside from an intriguing welcome bonus offer and accelerated earnings on travel, dining, online grocery purchases, and streaming services, the card provides several interesting benefits all for a $95 annual fee:

• Access to Chase’s transfer partners
• $50 annual credit on hotel stays booked through the Chase Travel portal
• Primary auto rental collision damage waiver
• Travel protections, including trip delay insurance and trip cancellation and interruption insurance
• 10% anniversary bonus points each year
• Complimentary DoorDash DashPass for a minimum of 1 year if you activate by Dec. 31, 2027
• No foreign transaction fees

My 3 Favorite Benefits of the Chase Sapphire Preferred Card

Here are some of the best benefits of the Chase Sapphire Preferred card, in no particular order.

1. Primary Car Rental Insurance

Everyone needs to rent a vehicle at some point. However, renting a car isn’t always easy, as there are various fees and rental car company insurance plans.

When renting a vehicle, rental car companies require drivers to sign a Collision Damage Waiver (CDW), which is a protection that covers damage from collision or theft to most rental vehicles.

This comprehensive coverage reimburses you for damages or a replacement if your rental car is involved in (almost) any sort of accident. It is required and can often be expensive, depending on several factors. Rental car companies make a lot of money selling CDW policies, which can be upwards of $35 per day.

Arguably, the most interesting benefit of the Chase Sapphire Preferred card is that it comes with primary car rental insurance. With the CDW on the Chase Sapphire Preferred card, drivers can decline the rental car company’s coverage and still be covered.

Rental car coverage via credit cards is often secondary, meaning you must first file a claim with your primary insurance company before the secondary coverage kicks in. The Chase Sapphire Preferred card bypasses this by providing primary coverage, allowing you to file a claim directly without going through another insurance company first.

To qualify for rental car coverage through the Chase Sapphire Preferred card, you must book the rental car with the card and decline the rental car company’s CDW coverage (sometimes called a “loss damage waiver”). The coverage applies to rentals in the U.S. and most other countries worldwide. 

Over the past 5 years, I have rented more than 25 vehicles in nearly a dozen countries. I booked the rental car with my Chase Sapphire Preferred card each time to ensure I was fully covered.

2. Comprehensive Travel Insurance

Fortunately, the fantastic insurance and protections extend far beyond rental cars. In addition to primary rental car insurance, the Chase Sapphire Preferred card also provides among the best travel insurance of any credit card. This includes:

• Trip Cancellation and Interruption Insurance: You can get reimbursed up to $10,000 per person and $20,000 per trip in non-refundable travel expenses if you need to cancel your trip or end it early due to illness, severe weather, or other covered circumstances
• Trip Delay Insurance: You can get reimbursed up to $500 per ticket if your flight is delayed 12 hours or requires an overnight stay. This relates to items like accommodations, toiletries, transportation, food, etc.
• Baggage Delay Insurance: You can get reimbursed for up to $100 per day (up to 5 days) for essential items if your checked baggage is delayed more than 6 hours
• Lost Luggage Insurance: You can get reimbursed for a maximum of $3,000 to repair or replace your baggage (including carry-on baggage) due to physical loss, theft, or damage

Although I have never had to use any baggage or luggage insurance, I have had to file claims under the trip cancellation and trip delay insurance. This has saved me over $2,000 over the course of 5 years.

3. Access to Chase Travel Partners

Chase Ultimate Rewards points are considered to be among the most valuable points currencies, thanks to their flexibility and numerous transfer options. According to our valuations, they are worth 2.0 cents apiece, second only to American Express Membership Rewards points.

Although several credit cards earn Chase Ultimate Rewards points, only a few can transfer these points to Chase’s long list of airline and hotel transfer partners, which is typically where you get the most value from the points. Of course, the Chase Sapphire Preferred card is one of those cards.

Some of Chase’s airline transfer partners, such as Air Canada Aeroplan and British Airways Executive Club, can be an excellent way to book Star Alliance and Oneworld award tickets, respectively. Meanwhile, you can also leverage free hotel nights worldwide with hotel transfer partners like World of Hyatt and Marriott Bonvoy.

Personally, Chase Ultimate Rewards points are my favorite currency. I find them incredibly easy to earn (having 7 Chase cards helps) and even easier to redeem. In fact, this year alone, I have redeemed over 400,000 Chase Ultimate Rewards points for more than $20,000 of value.

Final Thoughts

The Chase Sapphire Preferred card is one of my favorite travel rewards credit cards, and for good reason. It is also widely considered as the best starter credit card; however, it is more than just that. Unless Chase makes significant changes to the Chase Sapphire Preferred card, such as removing essential benefits or increasing the annual fee without some additional perks or benefits, I can’t ever see myself closing this credit card.