Why the Chase Sapphire Preferred still has a top spot in my wallet

July 12, 2021

•

8 min read

This post contains references to products from one or more of our advertisers. We may receive compensation when you click on links to those products. Terms apply to the offers listed on this page. For an explanation of our Advertising Policy, visit this page.

Update: Some offers mentioned below are no longer available. View the current offers here.

The Chase Sapphire Preferred® Card was my very first rewards credit card. It helped me earn enough points to take my first points-funded trip to Croatia, and it is what got me started with the points-and-miles game. But even though I've added more credit cards to my wallet since I first got my Chase Sapphire Preferred, it still holds a top spot in my wallet. And I still recommend it to friends and family members who are also looking to start earning credit card rewards.

Want more credit card news and advice delivered to your inbox daily? Sign up for the TPG newsletter

Right now, you can also earn 100,000 Ultimate Rewards points after you spend $4,000 on purchases in the first three months of account opening — a best-ever offer for the Chase Sapphire Preferred. That bonus is worth $2,000 according to TPG valuations.

Apply here for the Chase Sapphire Preferred with 100,000 increased bonus

With so many great credit cards out there, why do I still value this mid-tier card? Today, I'm going to walk through my reasoning.

Broad bonus categories

The Chase Sapphire Preferred only has two primary bonus categories: 3x on dining and 2x on travel. Right now, you'll also earn 5x on Lyft because of the rideshare company's partnership with Chase. But historically, 2x on travel and 3x on dining have been the signature categories offered. And now there's even hints at a potential update to the card, with a bump in earnings on dining. This would undoubtedly help its cause of retaining the top spot in my wallet.

But even though that may not sound like I'm earning across a ton of purchases, it's surprising the number of things that code as travel or dining on my statement. Chase defines both categories very broadly, so many expenses that you may not assume would earn bonus rewards actually do. Bars and breweries that don't serve food, parking lots and garages, tolls and vending machines are just a few of the more surprising things Chase generally counts as dining and travel. Some TPGers have even reported yacht club fees as earning 2x with the Chase Sapphire Preferred in the past.

Courtesy of Airbnb — I generally stay at Airbnbs rather than hotels because I like having access to a full kitchen and sharing spaces with friends. Airbnb also counts as travel on the Sapphire Preferred, which isn't common for credit cards. (Photo courtesy of Airbnb)

Other top credit cards are much more strict in what they will count as travel. Chase counts Airbnb (which I typically prefer over hotels depending on where I am traveling), campgrounds, cruise lines, travel agencies, discount travel sites and more as travel. In comparison, my American Express® Gold Card only earns bonus rewards on flights booked directly with airlines or through Amex travel.

So even though there are only two main earning categories, those categories encompass quite a few different purchases.

Chase Ultimate Rewards program

In my mind, there are four top credit card rewards programs: Chase Ultimate Rewards, American Express Membership Rewards, Capital One Rewards and Citi ThankYou Points. Out of these four, Chase and Amex are generally regarded as the most valuable because of their transferable currencies. I have both a Chase Ultimate Rewards card (my Chase Sapphire Preferred that I pair with my Chase Freedom Unlimited) and an Amex Membership Rewards card (my American Express® Gold Card). Still, I generally favor the Chase Ultimate Rewards program when I look at earning and burning, even though the Membership Rewards program has more transfer partners.

Why? At this point in my life, I book economy flights more often than premium class. Most of the time, I'd rather save on points and fly economy than splurge on business class seats. Of course, I imagine this will change as I get more confident with my points and miles redemptions, add more cards to my wallet and have more expendable income as I get older. But for now, I don't mind economy and it means I can take more trips with fewer points and miles.

Chase Ultimate Rewards offers a 25% redemption bonus when you book eligible travel through its travel portal. For economy flights (excluding some one-off amazing deals), I typically find I end up getting more value from booking through the portal than by transferring them to Amex Membership Rewards.

So as long as Chase continues to offer that redemption bonus, I'll continue to have a Chase Ultimate Rewards card in my wallet. Right now, it makes more sense for that card to be the Chase Sapphire Preferred (though I might upgrade to the Chase Sapphire Reserve in the future).

It's easy to pair

Another reason the Chase Sapphire Preferred continues to be one of my top credit cards is because of how easy it is to pair with other credit cards to create a more well-rounded credit card strategy.

You can pair the Chase Sapphire Preferred with Chase's no-annual-fee cash back cards (both consumer and business). The rewards earned with those other credit cards are then converted into Chase Ultimate Rewards points, meaning you'll then be able to use them for 1.25 cents each through the Chase travel portal or transfer them to partners. I have the Chase Freedom Unlimited for my non-bonus spending, and it's so easy to move rewards over.

But even outside of Chase credit cards, I've found it easy to pair with my other cards. It fits in pretty seamlessly with my American Express Gold Card, for example. The Amex Gold does offer some benefits that the Chase Sapphire Preferred does not, such as the up to $120 annual dining statement credit (enrollment required) and bonus rewards on U.S. supermarkets. But the Chase Sapphire Preferred fills the gaps left by Amex Gold's limited travel categories. And while there is some overlap between transfer partners, there are also several partners that Chase offers that Amex does not and vise versa.

Bottom line

I get a lot of value from this card while only paying $95 per year for the annual fee. So all the rewards I earn and all of the benefits I enjoy (including travel protections and a complimentary year of DashPass) are easily offset each year.

When I first got my Chase Sapphire Preferred, I put pretty much every single purchase on the card. As I've added other valuable cards to my rewards strategy, that's changed. I use my Amex Gold for my U.S. supermarket and dining purchases at restaurants because I earn 4x on those expenses (on up to $25,000 in purchases each calendar year at U.S. supermarkets). But the Chase Sapphire Preferred is what I use for a solid portion of my non-bonus spending and the travel and dining purchases that won't earn rewards on the Amex Gold or my other cards. Even with my reduced usage of the card over the past year, it's still been easy to justify keeping it. The rewards I get still greatly outweigh the fee.

Eventually, I'll level up to the Chase Sapphire Reserve to take advantage of the other perks. I had originally planned to upgrade earlier this year, but I put that plan on pause because I didn't want to pay a super high annual fee off the bat if I wouldn't be able to use many of the perks until late 2021 or early 2022. Eventually, when I do make the switch, I'll continue to recommend the Chase Sapphire Preferred to points and miles beginners and casual travelers who are looking for a great all-around rewards credit card.

Ready to get the card? Apply here for the Chase Sapphire Preferred with 100,000 increased bonus

Featured image by (Photo by John Gribben for The Points Guy)

Editorial disclaimer: Opinions expressed here are the author’s alone, not those of any bank, credit card issuer, airline or hotel chain, and have not been reviewed, approved or otherwise endorsed by any of these entities.