Looking for a new card? 5 reasons the Chase Sapphire Preferred should be your next credit card
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Choosing a travel credit card is an exciting thing. But it’s also a really important step that you want to get right since getting one card or offer can impact your ability to get others down the road.
Today I want to share why the Chase Sapphire Preferred Card should be the first — or next — rewards credit card. It’s always a great choice, but right now it has a best-ever offer of 100,000 bonus points worth $2,000 by TPG valuations making it an especially wise move.
I’m far from alone in thinking it’s a great card — TPG readers chose the Chase Sapphire Preferred as the Best Travel Rewards Credit Card at the 2019 and the 2020 TPG Awards. For years, the Sapphire Preferred has routinely been the most recommended first rewards credit card by TPG staff for their own friends and family looking to start earning credit card rewards.
Here’s why the Sapphire Preferred should be your first (or next) travel rewards card.
100,000 points ($2,000 in value) for signing up
The Chase Sapphire Preferred currently has an all-time high sign-up bonus of 100,000 Ultimate Rewards points after you spend $4,000 on purchases in the first three months of account opening. This is, by far, the largest sign-up bonus we have ever seen for this card.
Those 100,000 flexible Chase Ultimate Rewards points are worth $1,250 when you redeem them for travel at a fixed value in the Chase Ultimate Rewards portal. This site looks and feels like you were booking flights or hotels via Expedia, making it an easy way to redeem points.
At least until Sept. 30, 2021, you can also redeem the 100,000 points for up to $1,250 in eligible dining, grocery or home improvement charges made to the card via the Chase Pay Yourself Back offer.
However, TPG values these points at $2,000 or more if you redeem your points via Chase’s travel partners that allow you to transfer the points to their respective programs at a 1:1 ratio. When used in that way, 100,000 Ultimate Reward points could turn into 100,000 United miles, or 100,000 Hyatt points, or 100,000 British Airways Avios and the list goes on.
Chase has partnered with DoorDash to offer cardholders discounts on the company’s DashPass unlimited delivery program. The Chase Sapphire Preferred offers at least one year of this service as a complimentary benefit, which normally costs $9.99 per month. You’ll get lower service fees and free delivery on all orders of over $12 for at least a year. But you needed to register for the offer by Dec. 31, 2021, with service guaranteed through 2021.
Finally, Chase Sapphire Preferred cardholders can receive up to $60 back on all eligible Peloton Digital or All-Access Membership through Dec. 31, 2021. Sapphire Preferred cardholders also earn 5 points per dollar on Peloton Bike, Tread and accessory purchases over $1,800, with a max earn of 25,000 points.
Generous 2x travel and dining categories
On the surface, this earning feature of the Chase Sapphire Preferred may not sound that special.
Here are some examples of real-life purchases that have earned me 2 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
Delivery services such Seamless and Uber Eats 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 in a number of ways but some redemption options are significantly better than others.
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 each. The big benefit of redeeming points for flights this way is that they typically count toward elite status. However, 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 like United, Hyatt and Singapore Krisflyer.
When you transfer points to these partners, you’ll unlock terrific redemption opportunities, such as free award nights at the ski-out Park Hyatt Beaver Creek and seats on Singapore Suites. In some cases, TPG’s valuation of 2 cents apiece for Ultimate Rewards points can easily be exceeded.
The Chase Sapphire Preferred is a terrific card to combine with the Chase Freedom Flex or Chase Freedom Unlimited. All three of these cards are marketed as cash-back cards, but both become much more valuable when paired with a premium card such as the Sapphire Preferred.
Instead of just getting 5% cash back on rotating quarterly bonus categories with the Freedom Flex each quarter (up to $1,500 each quarter, activation required), plus 1% cash back elsewhere, 1.5% cash back on everything with the Freedom Unlimited and 5% cash back on travel purchased through Chase Ultimate Rewards, 3% on dining, 3% on drugstore purchases and 1% elsewhere, you can “convert” those fixed earnings to much more flexible Ultimate Rewards points.
You’ll get the same flexibility to transfer points to partners or redeem them for travel at 1.25 cents each.
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. These fees appear to be gradually on their way out, especially for credit cards that charge an annual fee. The Sapphire Preferred has always waived them. That will typically save you 2.7%-3% on every purchase abroad.
- Trip delay reimbursement. 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. (And yes, we’ve tested this perk out and it really works.)
- 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, non-refundable travel expenses such as plane tickets, hotels and tours.
- Baggage delay insurance. Up to $100 per day for essentials for up to five days when your checked baggage is delayed by more than six hours.
Chase’s 5/24 rule
If you open 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 is called the Chase 5/24 rule and it’s a pretty hard and fast rule. As a result, if you want to take advantage of the sign-up bonus and the other perks of the Chase Sapphire Preferred, it’s a good idea to add it to your wallet before moving on to other cards.
On a similar note, if you’ve received a bonus from the Chase Sapphire Reserve in the last 48 months and/or still have a Sapphire Reserve open, you will not be eligible for the Sapphire Preferred’s sign-up bonus.
Whenever I meet someone who wants to travel as frequently as I do, I immediately ask about their rewards 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 every year to cash in for flights and hotels because I maximize the everyday dollars that I spend. The Chase Sapphire Preferred Card plays a big role in this strategy. It’s a terrific starter travel rewards card, getting you a minimum of over $1,250 in sign-up bonus, assuming you hit the spending requirements.
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 card to apply for while the bonus is increased to an all-time high level. And once you get the card, make sure to check out “6 things to do when you get the Chase Sapphire Preferred.”
Official application link: Chase Sapphire Preferred Card with a 100,000-point bonus.
Additional reporting by Benét J. Wilson
Featured photo by Wyatt Smith/The Points Guy
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