5 reasons why the Chase Sapphire Preferred should be your first card
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Editor’s note: This post has been updated with the latest perks. It was originally published on Nov. 23, 2019.
Choosing your first travel credit card is critical to your strategy for maximizing your points and miles. A select few cards offer a wide array of perks that appeal to a variety of travelers. Today I want to share my top five reasons why — if you don’t already have it — the Chase Sapphire Preferred Card should be the first credit card you get. And I’m not alone in thinking it’s great — TPG readers chose the CSP as the Best Travel Rewards Credit Card at the 2019 TPG Awards.
60,000 Points ($1,200 in Value) for Signing Up
The Chase Sapphire Preferred offers a sign-up bonus of 60,000 Ultimate Rewards points after you spend $4,000 on purchases in the first three months. These 60,000 points are worth $1,200, based on TPG’s point valuations. Those 60,000 points add up to $750 in value when you redeem them for travel in the Chase Ultimate Rewards portal.
Chase recently announced it was partnering with DoorDash to offer cardholders discounts on the company’s DashPass unlimited delivery program. For $9.99 per month, you get lower service fees and free delivery on all orders of more than $12 for at least a year. To register, simply add your eligible card to the DoorDash app and click to add the offer anytime between now and Dec. 31, 2021. Customers will receive a minimum of one year, with service guaranteed through 2021.
Generous 2x Travel and Dining Categories
On the surface, this feature of the Chase Sapphire Preferred may not sound that special. Many credit cards offer category bonuses for travel and dining, but the real appeal of these bonuses is the wide definition of “travel” on the CSP.
Here are some examples of real-life purchases that have earned me 2x Ultimate Rewards points per dollar spent on the Sapphire Preferred:
- A beer hall (that didn’t serve food)
- Street parking
- Quarterly dues for the yacht club to which I belong
- A rental car
- Cupcake shop
- Train transportation
- City tours
- Tram tickets
- Parking at the airport (at a location that wasn’t classified as a travel expense when I previously used my Barclaycard Arrival Plus card there)
Delivery services such Seamless and Postmates also fall into the dining bonus category, so if your hometown has these services, you have additional earning potential.
So Many Redemption Possibilities
The Chase Sapphire Preferred earns valuable Chase Ultimate Rewards points on every purchase you make with the card. Those points can be redeemed a number of ways but some redemption options are significantly better than others.
There Are Two Key Ways to Redeem Ultimate Rewards Points
- Booking travel directly through the Chase travel portal where points are worth a flat 1.25 cents apiece. The big benefit of redeeming points for flights this way is that they typically do count toward elite status (but that isn’t the case with hotel bookings).
- Transferring your points to one of Chase’s 10 airline and three hotel partners. Typically you’ll get the most out of your points when you transfer them to these partners, including United, Hyatt and Singapore.
When you transfer points to these partners, you’ll unlock terrific redemptions, such as free nights at the Park Hyatt Tokyo and free flights on Singapore Suites. In some cases, TPG’s valuation of 2 cents apiece for Ultimate Rewards points can easily be eclipsed. And if you have other Chase credit cards that earn cash back in the form of Ultimate Rewards points — such as the Chase Freedom or Chase Freedom Unlimited — you can combine your points from those cards with your CSP and get the same flexibility to transfer them to partners or redeem them for travel at the 1.25 cent per point flat rate.
Remember, too, that the Sapphire Preferred is a terrific card to combine with the Chase Freedom or Chase Freedom Unlimited, if you have one of them. Both of these cards are marketed as cash-back cards, but both become much more valuable when paired with a premium card like the Sapphire Preferred. Instead of just getting 5% cash back on rotating quarterly bonus categories each quarter you activate (plus 1% cash back elsewhere) with the Freedom and 1.5% cash back on everything with the Freedom Unlimited, you can “convert” those fixed earnings to much more flexible Ultimate Rewards points.
The Travel Benefits
In addition to earning valuable rewards for making purchases while traveling, you can take advantage of some fantastic benefits while on the road with the Chase Sapphire Preferred.
Top 5 travel benefits
- Primary car rental insurance. This covers the entire loss, damage or theft of your car rental without reporting it to your insurance company, a benefit that can save you big time in the long term.
- No foreign transaction fees on the card. These fees appear to be gradually on their way out, especially for credit cards that charge an annual fee, but the Sapphire Preferred has always waived them. That’ll typically save you 2.7%-3% on every purchase abroad.
- Trip delay insurance if your flight, train, or other common carrier is delayed more than 12 hours or you require an overnight stay as a result of a delay. You’re covered for unreimbursed expenses such as meals and lodging up to $500 per ticket.
- Trip cancellation/trip interruption insurance if your trip is cut short or interrupted by sickness, severe weather or other covered situations. You can recoup up to $10,000 per person and up to $20,000 per trip for prepaid, nonrefundable travel expenses such as plane tickets, hotels or tours.
- Baggage delay insurance of $100 per day for up to five days when your checked baggage is delayed by more than six hours for reimbursement of essential purchases like toiletries and clothing.
Chase’s 5/24 Rule
If you’re thinking about expanding your points-and-miles strategy to include opening and using multiple credit cards, now’s a fantastic time to open the Chase Sapphire Preferred. However, card issuers have different application restrictions and if you’ve opened five or more new personal credit cards in the past 24 months across all banks (not just with Chase), it’s highly likely that your application for the Sapphire Preferred will be automatically declined. This 5/24 rule now covers all credit cards issued by Chase. As a result, if you want to take advantage of the sign-up bonus and the other perks of the CSP, you should apply for it sooner rather than later.
Whenever I meet someone who wants to travel as much as I do, I immediately ask about their credit card strategy. I stopped traveling extensively for work a few years ago, yet I’m still able to rack up hundreds of thousands of points and miles every year. The Chase Sapphire Preferred Card plays a big role in this. It’s a terrific starter travel rewards card, getting you a minimum of $750 in value if you just use the sign-up bonus to book any flight or hotel through the Chase travel portal. With the excellent Chase Ultimate Rewards transfer partners, it wouldn’t be difficult to get value of $1,200 or more from the sign-up bonus alone.
The Sapphire Preferred is also a great card for experienced award travelers, so if it isn’t already in your wallet, definitely consider making it your next application. And once you get the card, make sure to check out “5 things to do when you get the Chase Sapphire Preferred” and “5 Chase Sapphire Preferred benefits you might not know about” or the Chase Sapphire Preferred card hub.
Official application link: Chase Sapphire Preferred Card with a 60,000-point bonus.
Additional reporting by Benét J. Wilson
Featured photo by by Eric Helgas / The Points Guy
WELCOME OFFER: 60,000 Points
TPG'S BONUS VALUATION*: $1,200
CARD HIGHLIGHTS: 2X points on all travel and dining, 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.
- Earn 60,000 bonus points after you spend $4,000 on purchases in the first 3 months from account opening. That's $750 toward travel when you redeem through Chase Ultimate Rewards®
- 2X points on travel and dining at restaurants worldwide & 1 point per dollar spent on all other purchases.
- Get 25% more value when you redeem for airfare, hotels, car rentals and cruises through Chase Ultimate Rewards. For example, 60,000 points are worth $750 toward travel
- No delivery fees for a minimum of one year on qualifying food purchases with a DashPass subscription from DoorDash -over a $100 value. Activate with your Chase Sapphire card by December 31, 2021.
- Earn 5X points on Lyft rides through March 2022. That’s 3X points in addition to the 2X points you already earn on travel.