Sunday Reader Question: Deciding Between Chase Sapphire Preferred® Card and Starwood American Express
Update: Some offers mentioned below are no longer available. View the current offers here.TPG reader Mark is in a situation where he needs to decide which card is best for his upcoming increase in travel:
"I am trying to decide between getting the Chase Sapphire Preferred Card and the Starwood Amex. I am going to start traveling and entertaining a lot for work so the idea of the 2x travel and dining on the Chase Sapphire Preferred® Card is great (I would book through Ultimate Rewards). I will be going to Detroit and trying to stay at an SPG property when I am there, though, and I fly American. I can't decide if the bonus categories outweighs the exchange of the SPG points. Can you help a junior points guy out?"
Both are great cards and points programs and I personally carry them in my wallets to boost my Ultimate Rewards and Starwood accounts.
However, if I had to only choose one, I'd choose the Chase Sapphire Preferred® Card for the following reasons:
1. Better point earning: You get the 7% dividend on top of the bonus miles, so it's essentially 2.14 base on all travel (which beyond airfare, hotel and car rentals includes mass transportation like subways and trains, taxis and even parking so it's a base 2.14x. Plus, the Chase Ultimate Rewards portal allows you to book travel through sites like Hotwire for an additional 2 points per dollar - 4.28 Ultimate Rewards points for booking airfare far outweighs 1 Starwood point plus any portal bonuses (you need to have a Chase card to get the Ultimate Rewards points and should use a Chase card for the purchases, but some people have had luck using other cards).
2. Another key consideration is that the Chase Sapphire Preferred® Card doesn't have foreign transaction fees, so if you plan to travel abroad at all, you won't want to use the Starwood American Express, which charges a crazy 2.7% fee (See Rates & Fees)on every dollar charged in a foreign currency vs. 0% on the Chase Sapphire Preferred® Card. Even when I stay at Starwood hotels abroad, I use the Chase Sapphire Preferred® Card to avoid that fee, though I do use the Starwood Amex to pay for Starwood hotels in the US.
3. The final kicker is that Chase points transfer instantly to the transfer partners 1:1 to partners United, British Airways, Southwest, Korean, Hyatt, Marriott, Ritz-Carlton and Amtrak. They also transfer to Priority Club, but it takes about 2 days and I wouldn't recommend transferring to them because you'll get more value leveraging partners like United and Hyatt.
4. Starwood transfers can take up to a month (though usually a week or less), which can be a dealbreaker when trying to book airfare. Starwood does have more airline partners, but they only transfer to United at a 2:1 ratio and I personally find United miles to be the most valuable currency.
Don't get me wrong, the Starwood Amex is great - I actually have both the Starwood Preferred Guest Credit Card from American Express and the Starwood Preferred Guest Business Credit Card from American Express, which each give me 5 nights/2 stays towards elite status every year. It is nice having 10 stays on January 1 - only 40 more to retain Platinum and 90 more for Ambassador! Starwood points are also extremely valuable because Starwood has great redemptions like Cash & Points (though they are jacking up the cost of those awards in March) and for every 20,000 points you transfer to an airline partner, you get a 5,000 mile bonus - a nice built-in 25% transfer bonus.
However, I think the Chase Sapphire Preferred Card is a better all-around card for travelers, though that might change if the Starwood Amex drops the foreign transaction fee, speeds up partner transfers and adds in some more category spending bonuses!
For rates and fees of the Starwood Preferred Guest Card, please click here.
TPG featured card
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Terms & restrictions apply. See rates & fees.
| 4X | Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year. |
| 4X | Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year. |
| 5X | New! Earn 5X Membership Rewards® points on prepaid hotel stays booked through AmexTravel.com or the Amex Travel App. |
| 3X | Earn 3X Membership Rewards® points on flights booked through AmexTravel.com, the Amex Travel App, or purchased directly from airlines. |
| 2X | Earn 2X Membership Rewards® points on prepaid car rentals booked through AmexTravel.com or the Amex Travel App and cruises booked and paid through AmexTravel.com. |
| 1X | Earn 1X Membership Rewards® point per dollar spent on all other eligible purchases. |
Pros
- Valuable dining and food-related credits
- Flexible rewards with airline and hotel transfer partners
- Multiple travel and purchase protections
- No foreign transaction fees
- Access to Amex Offers for additional savings (enrollment required)
Cons
- Not as useful for those living outside the U.S.
- Some may have trouble using Uber and other dining credits
- You may be eligible for as high as 100,000 Membership Rewards® Points after you spend $8,000 in eligible purchases on your new Card in your first 6 months of Card Membership. Welcome offers vary and you may not be eligible for an offer. Apply to know if you’re approved and find out your exact welcome offer amount – all with no credit score impact. If you’re approved and choose to accept the Card, your score may be impacted.
- Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year.
- Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year.
- New! Earn 5X Membership Rewards® points on prepaid hotel stays booked through AmexTravel.com or the Amex Travel App.
- Earn 3X Membership Rewards® points on flights booked through AmexTravel.com, the Amex Travel App, or purchased directly from airlines.
- Earn 2X Membership Rewards® points on prepaid car rentals booked through AmexTravel.com or the Amex Travel App and cruises booked and paid through AmexTravel.com.
- Earn 1X Membership Rewards® point per dollar spent on all other eligible purchases.
- Pay It® lets you tap in the American Express® App to quickly pay for small purchase amounts throughout the month and still earn rewards the way you usually do. Plan It® gives you the option to split up big purchases into equal monthly payments with a fixed fee. You’ll know upfront exactly how much you’ll pay.
- Updated! $120 Dining Credit: Earn up to a total of $10 in statement credits monthly when you pay with the Gold Card at Grubhub (including Seamless), Buffalo Wild Wings, Five Guys, The Cheesecake Factory, and Wonder. This can be an annual savings of up to $120. Enrollment required.
- $100 Resy Credit: Get up to $100 in statement credits each calendar year at over 10,000 qualifying U.S. Resy restaurants after you pay for eligible purchases with the American Express® Gold Card. That’s up to $50 in statement credits semi-annually. Enrollment required.
- $84 Dunkin' Credit: Earn up to $7 in monthly statement credits after you pay with the American Express® Gold Card at U.S. Dunkin’ locations. Enrollment required.
- $120 Uber Cash on Gold: Enjoy up to $120 in Uber Cash annually with your Gold Card. Just add your Card to your Uber account and you'll get $10 in Uber Cash each month to use on orders and rides in the U.S. when you select an Amex Card for your transaction.
- New! As an American Express® Gold Card Member, you can enjoy complimentary Hertz Five Star® Status. Enjoy benefits like skipping the counter at select locations, adding an additional driver at no additional cost*, and vehicle upgrades**. Benefit enrollment and Hertz Gold+ registration are required. *Additional drivers must meet standard rental qualifications and must be a spouse or domestic partner to qualify as complimentary. Other additional drivers subject to fees. **Benefits are subject to availability and vary by location. Additional Hertz program Terms and Conditions including age restrictions apply.
- Take advantage of a $100 credit towards eligible charges* at over 1,300 upscale hotels worldwide when you book The Hotel Collection through AmexTravel.com or the Amex Travel App **. *Eligible charges vary by property. **The Hotel Collection requires a two-night minimum stay.
- Book your travel through the Amex Travel App with added peace of mind – backed by American Express® service and support. Only for American Express® Card Members.
- Whenever you need us, we're here. Our Member Services team will ensure you are taken care of. From lost Card replacement to statement questions, we are available to help 24/7.
- No Foreign Transaction Fees.
- Annual Fee is $325.
- Terms Apply.