How much is the Chase Sapphire Preferred card annual fee?

The Chase Sapphire Preferred card has a annual fee.

Is it worth paying a credit card annual fee?

Paying a credit card annual fee can be worth it if the card’s rewards, perks, and benefits outweigh the fee’s cost for your spending habits and financial goals.

How can I avoid an annual fee on a credit card?

You can avoid an annual fee on a credit card by choosing a no-annual-fee card, negotiating with your issuer, or asking for the fee to be waived based on your usage and payment history.

What is an annual fee on a credit card?

An annual fee on a credit card is a yearly charge that the cardholder pays to use the card and access its benefits. Annual fees are typically charged on your first monthly billing statement.

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This is the Only Annual Fee Credit Card I Still Have In My Wallet — Here’s Why

Content Contributor

Updated: January 18, 2025, 9:13am CST

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Paying Credit Card Annual Fees: Pros and Cons
Justifying the Chase Sapphire Preferred Card’s Annual Fee
Final Thoughts

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I’d prefer not pay a yearly fee to have a piece of plastic (or metal) in my wallet, though in many cases, it can make sense to have a credit card with an annual fee because of the benefits value.

However, I’ve removed all credit cards with annual fees from my wallet, except the Chase Sapphire Preferred^® Card. Here’s why I’ve decided to avoid annual fees moving forward and why this card is the one exception to the rule.

Paying Credit Card Annual Fees: Pros and Cons

Over the years, I’ve had numerous credit cards with annual fees ranging from low to high, and I’ve collectively extracted thousands of dollars in value from them.

However, I’ve now reached a point where I prioritize simplicity in my approach to points and miles. This shift means paring down my collection of credit cards and reducing my annual fee expenses. While it’s true that rewards and benefits can often offset these fees, I’d rather focus on 1 card that provides valuable rewards along with the essential benefits and protections I need.

In addition, the credit card landscape has evolved significantly in recent years. Cards with annual fees now often include a long list of statement credits. These modern-day card benefits are more akin to a coupon book, and issuers seem to bank on cardholders underutilizing these perks.

For example, The Platinum Card^® from American Express has a $695 annual fee (rates & fees) and a long list of ways to regain value. If you can use all of the card’s benefits (some might require enrollment), the potential value far outweighs the annual fee:

Up to $200 prepaid hotel credit
Up to $240 digital entertainment credit
Up to $155 Walmart+ credit
Up to $200 airline fee credit
Up to $200 Uber Cash credit
Up to $199 CLEAR Plus credit
$120 Global Entry credit every 4 years or up to $85 TSA PreCheck credit every 4.5 years
Up to $100 Saks Fifth Avenue credit

This list alone includes 8 statement credits that you’ll need to monitor throughout the year. With these premium cards, I’ve even had to create a spreadsheet to track the usage of each benefit to ensure I was maximizing each card’s value. This got old fast. It took away from the card’s real purpose of earning travel rewards on everyday purchases and often resulted in unintentional spending.

Bottom Line:

While other benefits, like travel insurance, don’t require tracking and can help justify the annual fee, I find some of these perks, such as the digital entertainment and Walmart+ credits, to be unnecessary. Additionally, keeping track of these credits can become tedious.

Justifying the Chase Sapphire Preferred Card’s Annual Fee

Choosing a card with benefits that align naturally with your spending habits requires careful consideration. For me, the most practical choice is the Chase Sapphire Preferred card.

BEST BEGINNER CARD

Chase Sapphire Preferred^® Card

U.P. Rating

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

Apply Now(at Chase's secure site)

Chase Sapphire Preferred^® Card

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

Welcome OfferEarn 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

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

Read Full Review

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

The card has a modest $95 annual fee, and it’s pretty easy to earn back with these 2 spending perks:

Maximizing these 2 benefits fully each year amounts to $120 in value, surpassing the $95 annual fee. The best part is that these benefits are for travel and grocery purchases, which I will make anyway. For DoorDash orders, I typically order a few items from the grocery store for delivery. The hotel credit through Chase Travel is easy to use. I used it on a hostel stay earlier this year, which made it nearly free.

The card also offers comprehensive travel insurance and valuable rewards. Most importantly, it delivers simplicity and value to consumers without much fluff. This is why I don’t plan to expand my credit card portfolio anytime soon.

Hot Tip:

Before you cancel a credit card, call the issuer to see if they will give you a retention offer to keep you as a cardholder. You could earn bonus miles or even get the annual fee waived for a year!

Final Thoughts

I’m thoughtful about the benefits I’m receiving when I apply for a credit card. I’ve had years where I’ve spent thousands of dollars in annual fees and others where I’ve spent close to zero. The results vary drastically, but I’ve found my happy medium by focusing on the Chase Sapphire Preferred card.

For rates and fees of The Platinum Card^® from American Express, click here.