Credit cards have gotten increasingly complicated over the past few years. Annual fees are climbing, benefits are being divided into monthly or quarterly credits, and getting your money’s worth takes more time and attention than ever.
The Chase Sapphire Preferred® Card (still) takes a somewhat different approach.
With a $95 annual fee, useful earning categories, and a collection of travel benefits, it’s a relatively uncomplicated option for travelers who want to earn points without committing a small fortune to an expensive premium card.
Here are four reasons the card is worth a closer look.
A $100 Hotel Credit That Can Offset the Annual Fee
One of the Sapphire Preferred’s most useful benefits is its $100 annual Chase Travel hotel credit.
Cardholders receive up to $100 in statement credits each account anniversary year when booking hotels through Chase Travel. The credit is applied automatically, and there’s no enrollment required.
That’s enough to offset the card’s $95 annual fee.
There is a catch, though. You have to book through Chase Travel rather than directly with the hotel. Portal rates aren’t always the lowest, so it’s worth comparing prices before making a reservation.
Also, the first $100 in eligible hotel purchases each year won’t earn Chase Ultimate Rewards points.
But for someone who can make use of the credit (perhaps for a one-night airport hotel stay before an early flight or after a late arrival), it’s a relatively simple way to offset the annual fee.
A Good Card for Everyday Spending
Some travel credit cards offer excellent benefits but aren’t particularly rewarding for everyday purchases.
The Sapphire Preferred has a fairly broad set of bonus categories. Cardholders earn:
- 5X points on purchases through Chase Travel.
- 3X points on dining, including eligible takeout and delivery.
- 3X points at gas stations, EV charging stations, and vacation homes at select brands.
- 3X points on eligible online groceries and select streaming services.
- 2X points on other travel purchases.
- 1X points on everything else.
Together, these categories cover a broad range of everyday purchases without requiring cardholders to track rotating categories or activate quarterly bonuses.
Plus, Ultimate Rewards points don’t expire as long as you keep your credit card account open.
More on This: I Want to Travel With Points. Where Do I Start?
Travel Protections That Can Save You Money
Travel insurance isn’t usually the first thing people consider when choosing a credit card, but it’s one of the Sapphire Preferred’s more valuable features.
For starters, the card offers primary rental car coverage. It provides up to $60,000 in reimbursement for covered theft and collision damage to eligible rental vehicles. That generally means you don’t have to file a claim with your personal auto insurance first.
The card also includes several protections for when travel plans go wrong:
- Trip delay reimbursement: Up to $500 per covered traveler for eligible expenses when a trip is delayed more than 12 hours or requires an overnight stay.
- Trip cancellation and interruption insurance: Up to $10,000 per covered traveler and $20,000 per trip for eligible prepaid, nonrefundable expenses.
- Baggage delay insurance: Up to $100 per day for five days when baggage is delayed more than six hours.
There’s also lost luggage reimbursement and a new emergency evacuation and transportation benefit offering up to $100,000 in coverage for qualifying situations.
All of these protections have eligibility requirements and exclusions, but they’re useful benefits to have on a card with a $95 annual fee.
You’re Not Tied to One Airline or Hotel Program
One of the biggest advantages of earning Chase Ultimate Rewards points is the flexibility to decide where to use them.
Unlike an airline credit card, which earns miles in a single loyalty program, the Sapphire Preferred earns points that can be transferred to multiple airline and hotel partners.
That includes programs such as United MileagePlus, Air Canada Aeroplan, British Airways Club, and World of Hyatt.
You might use Aeroplan to book a United flight, British Airways Avios for a short American Airlines flight, or transfer points to a hotel program for an upcoming stay.
Keep in mind that transfer ratios can vary by partner and card. Chase’s recent changes to World of Hyatt transfers are one example.
A Chance to Earn More Ultimate Rewards Points
For those looking to build up their Chase Ultimate Rewards balance, the Sapphire Preferred also offers a welcome bonus for eligible new applicants.
The welcome offer can provide a substantial boost to your points balance after meeting the required spending threshold.
If you’re interested in learning more about the card, including its current welcome offer and terms (and all of its other benefits), click “Learn More” below.
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