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The Points Guy believes that credit cards can transform lives, helping you leverage everyday spending for cash back or travel experiences that might otherwise be out of reach. That's why we publish a variety of editorial content and card comparisons: to help you find a great card to turn your goals into reality.
Our site may earn compensation when a customer clicks on a link, when an application is approved, or when an account is opened with our partners, and this may impact how or where these products appear. While we don't cover all available credit cards, our editorial team creates and maintains all of the analysis of these cards, and our content is not influenced nor subject to review by any credit card company, bank or partner prior to (or after) publication. Please view our advertising policy and product review methodology for more information.
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Why I won't keep my Chase Sapphire Preferred after the first year
Katie Genter is a digital nomad who has traveled full time since June 2017. She writes and edits stories about points and miles, and loyalty programs, often letting her personal experiences color these stories.
April 9, 2021 • 8 min read
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Quick summary
This article reviews a popular travel rewards card, highlighting its strong appeal for average travelers and its valuable perks.
Key benefits include flexible points transferable to multiple airline and hotel partners, travel and shopping protections, and no foreign transaction fees.
The author explains why, despite these features, the card is no longer a fit for their personal situation due to overlapping benefits from other cards in their household.
The discussion underscores that while the card offers broad value, it may not suit everyone, especially those with similar or superior products.
What to consider
Some offers and benefits mentioned may no longer be available, so check current terms before applying.
Eligibility for introductory bonuses and specific perks may be subject to restrictions or time limits.
Redemption rates and partner transfer options can vary across different products, potentially affecting overall value.
What you'll miss from the article
A detailed comparison of overlapping card benefits and practical advice on evaluating whether this type of travel rewards card fits your personal spending and travel patterns.
Generated by AI with support from our editorial team.
Update: Some offers mentioned below are no longer available. View the current offers here.
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.
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 60,000-point sign-up bonus is undoubtedly a reason to apply now. Specifically, you can earn 60,000 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 $1,200. However, make sure you're eligible for the Chase Sapphire Preferred's bonus before applying.
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:
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.
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
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 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.
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.
Comments
By commenting, you agree to our Community Guidelines to help create a positive space for conversation. The responses below are not provided or commissioned by the bank advertiser, our partners, or The Points Guy (“TPG”). They have not been reviewed, approved, or otherwise endorsed by any of these parties. All responses are submitted by individual contributors, and neither the bank advertiser, our partners, nor TPG are responsible for ensuring that all posts and/or questions are answered.
