Why I won’t keep my Chase Sapphire Preferred after the first year

Apr 9, 2021

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.

The Chase Sapphire Preferred Card is a card I frequently recommend to friends and family. After all, the Chase Sapphire Preferred is great for the average traveler. And there are many reasons the Chase Sapphire Preferred should be the first rewards card in your wallet. I even added the card to my wallet last summer after I finally dropped below Chase’s 5/24 rule.

But I don’t plan to keep my Chase Sapphire Preferred Card once its annual fee posts this summer. Of course, I’ll see if I can get a retention offer before closing my card. But unless I get a compelling retention offer, I don’t expect to keep my account open. After all, even though the Chase Sapphire Preferred can pay for itself for some cardholders, I don’t get significant ongoing value from it.

Today, I’ll start by reviewing the Chase Sapphire Preferred Card’s benefits. Then, I’ll describe why none of these benefits provide me enough incremental value to justify paying the annual fee. In the end, I believe you’ll see why the Chase Sapphire Preferred is an excellent choice for many consumers — but simply isn’t a good fit for me now.

Get the latest points, miles and travel news by signing up for TPG’s free daily newsletter.

Chase Sapphire Preferred benefits

There’s a lot to love about the Chase Sapphire Preferred Card. And, if you don’t already have the card, the limited-time 100,000-point sign-up bonus is undoubtedly a reason to apply now. Specifically, you can earn 100,000 bonus points after you spend $4,000 on purchases in the first three months from account opening. Based on TPG’s valuations, this bonus is worth about $2,000. However, make sure you’re eligible for the Chase Sapphire Preferred’s bonus before applying.

Related: What credit score do you need to get the Chase Sapphire Preferred Card?

On top of this bonus for new cardmembers, the Chase Sapphire Preferred Card also offers many ongoing perks. For example, the card earns valuable Chase Ultimate Rewards points as follows:

  • 5x points on Lyft rides through March 2022
  • 5x points on travel when book through the Chase Ultimate Rewards Portal

  • 3x dining

  • 3x on select streaming services

  • 3x points on online grocery purchases (excluding Target and Walmart)

  • 2x points on all other travel

  • 1x points on all other purchases

And Chase Sapphire Preferred cardholders get access to many benefits, including:

Check out the full Chase Sapphire Preferred Card review for more information. Then, come with me to the next section, where I’ll explain why I don’t plan to keep my card — despite all of its valuable perks.

Related: 5 reasons why the Chase Sapphire Preferred should be your first card

Why I don’t plan to keep my Chase Sapphire Preferred

(Photo by Inti St Clair/Getty Images)

An alternate title for this article could have been why a Chase Sapphire Reserve and Ink Business Preferred Credit Card combination is excellent for couples who frequently travel. Specifically, my husband JT has the Chase Sapphire Reserve and I have the Ink Business Preferred. And this combination is precisely why I’m not getting much value from my Chase Sapphire Preferred Card.

Earning rewards

The Ink Business Preferred and Chase Sapphire Preferred both carry a $95 annual fee. But while the Chase Sapphire Preferred earns 5x points on Lyft rides through March 2022, 5x points on travel (including airfare), 3x dining, 3x on select streaming services, 3x points on online grocery purchases (excluding Target and Walmart), 2x points on all other travel, and 1x points on all other purchases, the Ink Business Preferred earns:

  • 3x points on the first $150,000 spent in combined purchases in the following categories each account anniversary year:
    • Shipping purchases
    • Internet, cable and phone services
    • Advertising purchases with social media sites and search engines
    • Travel
  • 1x points on all other purchases

Plus I don’t get any value from the Chase Sapphire Preferred’s other bonus categories. We use JT’s Chase Sapphire Reserve to earn 10x on Lyft rides, so earning 5x isn’t helpful. And we have multiple of the best cards for dining

Related: Two-player mode: Credit card strategies for couples

Redeeming rewards

The Ink Business Preferred and Chase Sapphire Preferred both earn Chase Ultimate Rewards points. And you can transfer the points earned by either card to 10 airline and three hotel partners at a 1:1 ratio. Likewise, both cards allow you to redeem Ultimate Rewards points for travel booked through the Ultimate Rewards travel portal at a rate of 1.25 cents per point. But, since Chase Sapphire Reserve cardholders can book at a rate of 1.5 cents per point, we’d use JT’s account if we wanted to book travel through the portal.

The eligible categories and rates for Chase’s Pay Yourself Back feature differ across cards. But, since I prefer to save my Ultimate Rewards points and transfer to airline and hotel partners, this doesn’t concern me.

Related: Why I’m no longer chasing Ultimate Rewards

Other card benefits

The Ink Business Preferred and Chase Sapphire Preferred both provide extended warranty protection and purchase protection when you buy select items with your card. But I typically use a Citi card when purchasing an item that I expect may need extended warranty protection. After all, most Citi cards provide a two-year warranty extension, while most Chase cards only provide a one-year warranty extension.

The Chase Sapphire Preferred does offer several benefits not provided by the Ink Business Preferred. After all, the Ink Business Preferred is a small-business card, while the Chase Sapphire Preferred is a consumer card. But my husband’s Chase Sapphire Reserve offers many of the same partner benefits as my Chase Sapphire Preferred. And most of these benefits aren’t particularly useful since we’re RVing full time now.

Related: Chase credit card showdown: Chase Sapphire Preferred vs. Ink Business Preferred

Bottom line

The Chase Sapphire Preferred Card is one of the best travel rewards cards on the market. In particular, it’s great for consumers who want to earn Ultimate Rewards points and get travel protections while paying a modest $95 annual fee. However, as I’ve found, the Chase Sapphire Preferred may not be the best choice for you if you have other cards in your wallet that provide similar or better perks.

Featured photo by Thomas Barwick/Getty Images.

Chase Sapphire Preferred® Card

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.

Apply Now
More Things to Know
  • 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.
Regular APR
15.99%-22.99% Variable
Annual Fee
$95
Balance Transfer Fee
Either $5 or 5% of the amount of each transfer, whichever is greater.
Recommended Credit
Excellent/Good

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

Disclaimer: The responses below are not provided or commissioned by the bank advertiser. Responses have not been reviewed, approved or otherwise endorsed by the bank advertiser. It is not the bank advertiser’s responsibility to ensure all posts and/or questions are answered.