100,000-point bonus for a top travel card: Chase Sapphire Preferred credit card review
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Editor’s note: This post has been updated with the latest credit card information.
Chase Sapphire Preferred Card overview
The Chase Sapphire Preferred Card is one of the best-known travel rewards credit cards. The card will feature 5x points on travel booked through the Chase Travel Portal and 3x points on dining, select streaming services and online grocery store purchases (excluding Target, Walmart and wholesale clubs). These valuable points can be transferred to 14 airline and hotel partners or redeemed directly for travel at a rate of 1.25 cents per point through Chase Ultimate Rewards. And right now, it’s offering its best-ever public offer to date of 100,000 points. Card Rating*: ⭐⭐⭐⭐½
*Card Rating is based on the opinion of TPG’s editors and is not influenced by the card issuer.
One of the most common questions we’re asked is, “Which travel credit card should I start with?” I almost universally recommend the Chase Sapphire Preferred Card. It earns arguably the most valuable loyalty points in existence. It carries a reasonable annual fee. It gives bonus points for travel, dining, online grocery and streaming services. And it carries valuable travel protections any time I use it to pay for travel.
Many TPGers (including myself) started their journey into points and miles with the Chase Sapphire Preferred. And to top it all off, the card is now offering its best-ever sign-up bonus: an incredible 100,000 points after you spend $4,000 on purchases in the first three months from account opening.
Let’s review this card and identify why it’s a solid place to start for anyone entering the points and miles world plus how it can still contribute to the advanced points and miles collector’s loyalty portfolio.
Ready to get the card? Apply here for the Chase Sapphire Preferred
Who is this card for?
The Chase Sapphire Preferred is designed to work for travelers, both frequent and casual. It can benefit both the points and miles expert and someone just starting out. With a $95 annual fee, it’s not an expensive card, which makes it a good choice for a beginner. But since the card earns fully transferable Ultimate Rewards points — one of the top transferable points currencies — you’ll also find this card goes a long way if you’re an experienced loyalty program whiz looking to get maximum value.
I also recommend starting your journey into the world of loyalty points with Chase cards because you need to plan around Chase’s 5/24 rule strategically. The Sapphire Preferred is definitely worthy of one of your coveted five slots for opening new cards within two years.
While many resources may tell you to consider the Preferred’s big brother — the Chase Sapphire Reserve — you need to decide whether you’re likely to use all the advanced travel benefits that come along with the card’s much higher $550 annual fee. If that’s not for you — or if you’re starting and aren’t sure — get the Preferred, and then you can always convert your Preferred to a Reserve down the line if you choose.
Sign-up bonus: As much as $2,000 in value
With the Chase Sapphire Preferred, you’ll earn a sign-up bonus of 100,000 points after you spend $4,000 on purchases in the first three months from account opening. That’s the best-ever offer this card has seen.
This sign-up bonus is also one of the most impressive on the market right now, and it’s certainly the best bonus for any mid-tier card that only charges a $95 annual fee.
And considering you have to wait 48 months in between earning Chase Sapphire sign-up bonuses (and not have an open Sapphire card), it’s important to time your sign-ups appropriately. Scoring this bonus is an amazing way to start your points journey, but it’s also a perfect pick-me-up for experts to rack up rewards for amazing 2021 and 2022 travel redemptions.
Main benefits and perks
Chase has recently ramped up its partnerships with other brands, including on-demand food service DoorDash. Cardholders now get at least one year of complimentary DashPass membership with DoorDash, which gives you free delivery and reduced service fees on eligible purchases.
However, keep in mind there is a cost associated with using food delivery services such as DoorDash. If you already use the service, this can be a valuable benefit. Still, it’s not necessarily a valuable addition to the card if you’d rather forgo delivery services in favor of takeout or table service. A service like DoorDash might be more beneficial for the nights you may not feel like cooking.
A fairly new addition to the Chase Sapphire Preferred is that you’ll receive up to $60 back on an eligible Peloton Digital or All-Access membership through Dec. 31, 2021. With at-home workouts still popular these days, there’s a good chance that those credits can be put to good use.
I have also used this card to pay for car rentals, cruises, plane tickets and hotels because travel can often become a challenge, and I need peace of mind I’ll be financially covered if and when things go awry.
In my opinion, besides the points the card earns, the highlight of the Chase Sapphire Preferred’s benefits is the primary rental car coverage — a relatively unusual credit card perk.
Most cards offer secondary car insurance, which means if your rental car gets damaged, you have to first look to your personal auto policy or other primary coverages, if any, before the card’s coverage will step in and cover any losses. But with primary coverage, you can submit the claim directly to the card issuer right off the bat and avoid involving your own insurance policy entirely.
When traveling, the Preferred offers $500 per ticket in trip delay insurance and $10,000 in trip cancellation insurance. It also features $100 per day in coverage for up to five days in baggage delay insurance and up to $3,000 per person in lost luggage reimbursement.
That’s a strong lineup, though you’ll find even better protections on premium cards — along with higher annual fees. Keep in mind when you’re traveling internationally, the Sapphire Preferred has no foreign transaction fees, and any time you find yourself in a tough spot needing help, the Visa Signature Concierge Service is available.
Finally, the Sapphire Preferred offers purchase protection up to $500 per claim and $50,000 per account. Extended warranty protection also provides an additional year of coverage on eligible purchases with a manufacturer’s warranty of three years or less. You can read more about the Preferred’s shopping and travel benefits in the card’s guide to benefits.
How to earn points
The Sapphire Preferred comes with a simple earning structure that is easy to maximize. Here’s what you’ll earn (beginning Aug. 16, 2021):
- 5 points per dollar on travel booked through the Chase Travel Portal
- 5 points per dollar on Lyft (through March 2022)
- 3 points per dollar on dining, select streaming services and online groceries (excludes Target, Walmart and wholesale clubs)
- 2 points per dollar on all travel not booked through the Chase Travel Portal
- 1 point per dollar on everything else
Chase has a broad definition of travel when it comes to the Sapphire Preferred. For instance, in addition to the charges you might expect to count as travel — such as airlines, hotels, motels, car rentals, cruise lines and travel agencies — you’ll also get 2 points per dollar when paying for passenger trains (including most commuter trains), buses, taxis, limos, ferries, toll bridges and highways, parking lots and garages and even Uber.
When it comes to the dining side, you earn 3 points per dollar on essentially all restaurants — regardless of whether they’re fancy sit-down places or fast food joints. You can also get the bonus multiplier at many bars that don’t serve food and even some delivery services such as Seamless and DoorDash. That matches the earning rate of the premium Chase Sapphire Reserve.
And with the ability to earn 3 points per dollar for streaming services and online groceries, you can see how Chase is catering to a wake of customers with pandemic-related uncertainty in mind. This is a travel credit card, but it’s useful to those who prefer to stay indoors a while longer.
How to redeem points
When you’re ready to redeem the points you’ve earned with the Chase Sapphire Preferred (like after earning the 100,000-point sign-up bonus), that’s when the card’s flexibility really shines.
First, you can use your points to purchase airfare, reserve hotel rooms and even rent a car — all at a fixed rate of 1.25 cents per point through the Chase travel portal. That means if you don’t want to worry about blackout dates or finding award space, you’ll always have the option to book travel using your points.
As long as there’s a seat for sale on the flight you want, or a hotel room available to reserve with cash, you’ll be able to pay for it with your points. And if you book a flight this way, it should be treated as a normal revenue ticket — meaning you’re eligible to earn miles and credit toward airline elite status. The portal is run by Expedia, which means the process is as simple as booking through the third-party platform.
While it’s easiest to use your Ultimate Rewards points that way, it’s not always the most lucrative choice.
The way to get top value from your Ultimate Rewards points is to take advantage of the card’s ability to transfer points to Chase’s 11 airline and three hotel partners. If you take this route, you’ll need to be prepared to do a little homework by learning which partners are best utilized for specific trips and searching for award availability.
But if you’re willing to put in the extra time, you can get much more than 1.25 cents per point in value from your Ultimate Rewards points — especially with programs such as United MileagePlus or the World of Hyatt.
The American Express Membership Rewards program has more transfer partners, but those partners’ value varies greatly. And while not every Ultimate Rewards transfer partner is terrific, Chase’s program is highly competitive since you can take advantage of key partners including United, British Airways and Singapore for airline redemptions or burn points at high-end hotel properties with Hyatt such as the Park Hyatt Aviara.
But if travel is not on your radar and you’d prefer to utilize your points another way, you can also use Chase’s “Pay Yourself Back” feature. Typically, you can always redeem your points at 1 cent per point toward a statement credit — a value we’d usually not recommend. However, through Sept. 30, 2021, Chase is making this feature more attractive.
During this time, you can redeem your points at 1.25 cents each to offset purchases made at grocery stores, home improvement stores and dining establishments, including takeout and delivery services. This is the same redemption value as if you were to use your points to book travel through Chase Ultimate Rewards, so it serves as a good option for those who typically redeem their points this way — and not by transferring their points to partner programs.
Which card competes with the Chase Sapphire Preferred?
There are many worthwhile mid-tier travel credit cards, including a few that go toe-to-toe with the Sapphire Preferred. The most notable of these is the Capital One Venture Rewards Credit Card. For the same $95 annual fee, you’ll get 2 miles per dollar on all other purchases (plus a couple of perks). The Venture Rewards card allows you the flexibility to redeem miles at a fixed rate by using them to erase past purchases or by transferring them to 16 airline and three hotel partners.
When the Venture makes more sense
The Capital One Venture is a better card for non-bonus spending since you’re getting a minimum of 2 miles per dollar on all purchases. If you aren’t someone who spends much cash on travel, dining, online groceries and streaming services, the Venture may be the better option from an earning perspective.
Also, keep in mind that the Capital One Venture comes with up to $100 in statement credit every four years for your Global Entry/TSA PreCheck application fee. Now that Global Entry and TSA PreCheck are open for interviews, more people may start applying and setting up appointments, and this perk could come in handy, especially for beginners who don’t have other cards with the perk.
Is the Chase Sapphire Preferred worth the annual fee?
Unfortunately, like most things in this hobby, there’s no cut-and-dried answer to the question, “Is the Sapphire Preferred worth the annual fee?” That being said, there are some situations where the answer is a resounding yes, so consider opening and holding onto the card in year two and beyond if you fall into one (or more) of these categories:
- You can hit the sign-up bonus. If you know you’ll be able to earn the best-ever 100,000-point sign-up bonus, that’s potentially $2,000 in value that far outweighs the first-year cost of the card.
- You spend at least $4,750 in combined dining, streaming and online grocery purchases each year. The extra points you’d earn on the Sapphire Preferred will easily cover the annual fee, not including any additional value you get through partnerships (such as the DashPass benefit or 5x on Lyft), or the 5x points you’ll get for booking travel directly through the Chase Travel Portal.
- You’re looking for valuable travel protection. Some of the most under-appreciated perks on travel rewards credit cards involve the various coverages they include, and many involve travel. The Sapphire Preferred has primary car rental coverage, trip cancellation and delay insurance and even baggage delay protection. It’s hard to peg a value to these benefits before using them, but they can be a lifesaver when things go wrong.
- You currently hold the Chase Freedom (no longer open to new applicants), Chase Freedom Unlimited and/or Chase Freedom Flex cards. When you hold the Sapphire Preferred with one of these cards, you can freely move points from one account to another, effectively augmenting the value of your Freedom earnings by translating them from cash-back rewards into fully transferable Ultimate Rewards points.
Everyone’s spending and travel situation are unique, so it’s exceedingly hard to speak in absolutes regarding a specific travel rewards credit card.
However, the Chase Sapphire Preferred continues to represent a solid value proposition for a wide swath of the public. So long as you’re using the card frequently enough to get more than $95 in value from the rewards earned and benefits utilized, this card is definitely worth the annual cost.
There’s a reason this card has been around for over a decade and is still regarded as one of the best rewards credit cards while other cards have come and gone. It doesn’t currently have fancy travel benefits or lounge access, but it has an amazing sign-up bonus and earns some of the most valuable points around. It’s flexible enough to meet the travel rewards needs of practically every points and miles skill level, and it comes with a low enough price tag for many to be able to give it a try.
Ready to get the card? Apply here for the Chase Sapphire Preferred with a 100,000-point increased bonus
Additional reporting by Chris Dong, Stella Shon, Jennifer Yellin and Joseph Hostetler.
Featured photo by Wyatt Smith/The Points Guy.
Welcome to The Points Guy!
WELCOME OFFER: 100,000 Points
TPG'S BONUS VALUATION*: $2,000
CARD HIGHLIGHTS: 3X points on dining and 2x points on travel, points transferrable to over a dozen travel partners
*Bonus value is an estimated value calculated by TPG and not the card issuer. View our latest valuations here.
- Our best offer ever! Earn 100,000 bonus points after you spend $4,000 on purchases in the first 3 months from account opening. That's $1,250 when you redeem through Chase Ultimate Rewards®.
- Enjoy new benefits such as a $50 annual Ultimate Rewards Hotel Credit, 5X points on travel purchased through Chase Ultimate Rewards®, 3X points on dining and 2X points on all other travel purchases, plus more.
- Get 25% more value when you redeem for airfare, hotels, car rentals and cruises through Chase Ultimate Rewards®. For example, 100,000 points are worth $1,250 toward travel.
- With Pay Yourself Back℠, your points are worth 25% more during the current offer when you redeem them for statement credits against existing purchases in select, rotating categories.
- Get unlimited deliveries with a $0 delivery fee and reduced service fees on eligible orders over $12 for a minimum of one year with DashPass, DoorDash's subscription service. Activate by 12/31/21.
- Count on Trip Cancellation/Interruption Insurance, Auto Rental Collision Damage Waiver, Lost Luggage Insurance and more.
- Get up to $60 back on an eligible Peloton Digital or All-Access Membership through 12/31/2021, and get full access to their workout library through the Peloton app, including cardio, running, strength, yoga, and more. Take classes using a phone, tablet, or TV. No fitness equipment is required.