The Chase Sapphire Preferred is regarded as the best travel credit card by most points and miles experts for its exceptional benefits and low annual fee. Here are the 24 reasons why it should be your first travel credit card and why this is a keeper card.
Lucrative Sign Up Bonus
The Chase Sapphire Preferred always has a lucrative sign up bonus. The sign up bonus is currently 60,000 points for spending $4000 on the card in the first 3 months. That is only $1333 a month. If you put all of your expenses and bills on your card, most people can easily meet this $4000 minimum spend requirement.
Low Annual Fee
It has a low annual fee of $95 and you get a $50 statement credit each account anniversary year for hotel stays paid for through the Chase Travel Portal. I view this as an automatic reduction of $50 from the annual fee because I know I will use it.
You Earn “Flexible Rewards Points”
There are 3 different types of travel credit cards. There are airline cards, hotel cards and cards that earn flexible points. You always want at least one card that earns flexible rewards points since this gives you the most flexibility. You can use these points, called Chase Ultimate Rewards Points, for flights, hotels, rental cars, tours and even cruises. You can book these in the Chase Travel Portal which is similar to Expedia or you can easily transfer your points to their travel transfer partners. Transferring to travel partners is the key to getting the most value from your points. This allows you the ultimate flexibility in how you use your points. Another benefit of flexible points is that there are often transfer bonuses where you can get anywhere from 15% to 40% additional points when transferred to certain hotel and airline partners. This can make a huge difference and allow you to stretch your points and miles even further.
Travel Transfer Partners
If you love to travel, the best benefit is that the Chase Sapphire Preferred opens up the ability to transfer your Chase Ultimate Rewards Points to their airline and hotel transfer partners. As I mentioned earlier, this is the key to getting the most value from your points. This is not possible with any of the Chase no annual fee cards. You are able to use your points to book travel in the Chase Travel Portal (similar to Expedia) when you have a no annual fee card, but you cannot transfer to travel partners. Transferring to travel partners is where the fun really starts. Chase partners with 11 airlines and 3 hotel chains so this give you plenty of options. Hyatt is one of their hotel travel partners and their points are considered the most valuable hotel points in the points and miles game. Lets say you need to book a hotel for a night by the Atlanta airport and you want a decent hotel that ranks at least 4 out of 5 stars and offers free breakfast. You can find a Hyatt Place for 5000 points a night. Their competitors Marriott, IHG and Hilton charge considerably more, anywhere from 16,000 – 35,000 a night for an equivalent hotel. Currently the sign up bonus for the Chase Sapphire Preferred is 60,000 points when you spend at least $4000 on the card in the first 3 months. If you only used your 60,000 points for Category 1 Hyatt Hotels that cost 5000 points a night, that would give you 12 nights!! Sometimes you can even find Category 1 properties for 3500 points a night. If you wanted to do a beach vacation you can book the brand new Hyatt Place on Panama City Beach, Florida for 12,000 points a night. If you want to go to Cabo San Lucas /Los Cabos you could stay at a fancy all inclusive Hyatt for 20,000 – 25,000 points a night or a more basic, but brand new Hyatt Place for 3500 – 5000 points a night. If you wanted to use your 60,000 points for airfare you can get a roundtrip ticket to Europe in economy class or one way ticket in business class.
25% More Value in the Chase Travel Portal
You get 25% more value from your points when you book in the Chase Travel Portal. So if a hotel costs $135 will only cost you 10,736 points, so you are getting 1.25 cents per point. However, I do not recommend booking flights in the Chase Travel Portal or any other travel portal for that matter. (Expedia, Kayak, Travelocity, etc. ) There are too many flight delays and cancellations these days and if you book anywhere other than through the airline directly it can be considerably more difficult to resolve any issues that may arise. If you transfer your points to one of their airline transfer partners that is the same as booking directly through the airline.
The 5/24 Rule
If you decide to get into the points and miles hobby and really play what we call “the game” , then you will be happy you started with Chase cards. This is because Chase has something called the 5/24 rule. This means Chase will only approve you for a new credit card if you have less than 5 new credit cards on your credit report in the past 24 months. (Hence 5/24). If you have more than 5 new cards in the past 24 months then Chase will decline your application almost every time. (There have been occasional reports of people getting approved for some Chase business cards when over 5/24. ) Many people regret not paying attention to, or not knowing, the 5/24 rule and are very disappointed when they have to wait a year or maybe longer to get a Chase card.
Good Everyday Bonus Categories
Bonus Categories are those categories you earn more than 1x points per dollar spent on. This card has bonus categories that most people spend money on. The key to earning the most points possible through everyday spending is to pay attention to the bonus categories of the cards you have and ideally only put bonus category spend on each card . That way you maximize your point earnings.
With this card you earn:
5x travel booked through the Chase Travel Portal. So if you spend $1000 through the travel portal you will get 5000 points, which is enough to book a free night at a Category 1 Hyatt Place.
2x on all other travel. Chase’s definition of travel is one of the most broad in the industry. It includes anything from airfare, hotels, rental cars, campgrounds, taxi’s, airbnb’s, parking garages, discount travel sites, timeshares, travel agencies, busses, trains and ferries.
3x on dining, restaurants, fast food, takeout and most food delivery services like Grubhub and Doordash,
3x on Streaming Services such as Apple Music, Apple TV, Disney+, ESPN+, Fubo TV, HBO Max, Hulu, Netflix, Pandora, Paramount+, Peacock, Showtime, SiriusXM, Sling, Spotify, YouTube TV and Vudu
3x on groceries purchased online, such as pickup or delivery from grocery store chains and most meal kit delivery services (excluding Target, Walmart and wholesale clubs).
You also earn 5x points on Lyft through March of 2025.
All other charges only earn 1x which is certainly better than nothing. It is always recommended to have a credit card that earns at least 1.5x on all of your purchases. That way instead of putting all of those 1x purchases on the Chase Sapphire Preferred, you can earn a lot more points by putting them on your 1.5x. The second recommended card is the Chase Freedom Unlimited because you get 1.5x on all purchases. The card is marketed as a cash back card, but it also earns Ultimate Rewards points and when you have the Chase Sapphire Preferred you can combine the points you have earned on both cards and transfer to travel partners.
I put a link at the bottom of the article to Chase’s website with more information about their bonus categories.
Temporary Perks and Bonus Categories
This card usually has other temporary perks that change throughout the year. Currently you get a free Instacart Plus membership for 6 months and $15 in statement credits each quarter through July 2024. You also get a complimentary DoorDash DashPass membership. You’ll pay no delivery fee and lower service fees on eligible orders for a minimum of one year. Both memberships auto-renew, so make a note in your calendar to cancel if you don’t feel the service is worth paying for. You also receive a $10 a month GoPuff credit through the end of 2023. We don’t have GoPuff where I live, but I use the credit almost every month when I travel to get something delivered to my hotel room. Sometimes it’s coffee creamer if I want to make coffee in the room or maybe something from the drug store I forgot to bring.
10% points back
Each account anniversary you’ll earn bonus points equal to 10% of your total purchases made the previous year.
Trip Cancellation/Trip Interruption Insurance
Any travel charges you charge to your card or book through the Chase Travel Portal automatically include trip cancellation and trip interruption. This covers any travel charges made to your card. These travel purchases do not need to be made through the Chase Travel Portal to be covered. If your trip is canceled or cut short by sickness, severe weather and other covered situations, you can be reimbursed up to $10,000 per person and $20,000 per trip for your pre-paid, non-refundable travel expenses.
Also, a pro tip is when you book an award ticket with point and miles there are always taxes and fees associated with it. Typically for a one way domestic ticket taxes and fees are $5.60 per ticket. Always charge this fee to your Chase Sapphire Preferred since that counts as a travel expense and will entitle you to the trip insurance.
Keep in mind that pre-existing medical conditions are not covered by the credit card so you would want to purchase a separate travel insurance policy. Allianz Travel Insurance gets good reviews.
Trip Delay Reimbursement
Trip Delay Reimbursement is also included. This coverage applies to if your common carrier travel is delayed more than 12 hours or requires an overnight stay, you and your family are covered for unreimbursed expenses, such as meals and lodging, up to $500 per ticket.
Lost Luggage Reimbursement
If you or an immediate family member check or carry on luggage that is damaged or lost by the carrier, you’re covered up to $3,000 per passenger.
Baggage Delay Coverage
This reimburses you for essential purchases like toiletries and clothing for baggage delays over 6 hours by passenger carrier up to $100 a day for 5 days.
Auto Rental Collision Damage Waiver
Decline the rental company’s collision insurance and charge the entire rental cost to your card. Coverage is primary and provides reimbursement up to the actual cash value of the vehicle for theft and collision damage for most rental cars in the U.S. and abroad. Primary coverage means if you get in an accident, you won’t need to claim it on your own auto insurance. Most credit cards offer secondary coverage where you have to file the claim with your own insurance first and whatever they don’t pay then Chase might pay. Having primary coverage can be a very valuable benefit if you do get into an accident.
Travel and Emergency Assistance Services
If you run into a problem away from home, call the Benefit Administrator for legal and medical referrals or other travel and emergency assistance. (You will be responsible for the cost of any goods or services obtained.)
Roadside Assistance Dispatch
if you have a roadside emergency, call 1-800-847-2869 anytime to dispatch the help you need—anything from a tow or jumpstart to a tire change, lockout service, winching or gas delivery. Roadside service fees will be provided when you call and will be billed to your card.
Travel Accident Insurance
When you pay for your air, bus, train or cruise transportation with your card, you are eligible to receive accidental death or dismemberment coverage of up to $500,000.
No Foreign Transaction Fees
No Foreign Transaction Fees on charges made internationally. Many cards charge 3%. The card is also a Visa which is accepted practically everywhere.
Extended Warranty Protection
Let’s say your new computer stops working a few months after the manufacturer’s warranty expires. This coverage extends the time period of the U.S. manufacturer’s warranty by an additional year on eligible warranties of 3 years or less.
Purchase Protection
You’re devastated because your favorite new jacket gets stolen. You can get reimbursed for the cost of the jacket with this coverage. It covers your new purchases for 120 days against damage or theft up to $500 per claim and $50,000 per account.
Zero Liability Protection
You won’t be held responsible for unauthorized charges made with your card or account information. If you see an unauthorized charge, simply call the number on the back of your card.
Pay Yourself Back
Chase offers something called “Pay Yourself Back” that allows you to pay yourself back for certain charges at 1 cent per point. Chase changes the pay yourself back categories quarterly. In the past they have offered home improvement stores, grocery stores and others as categories. It is typically not recommended to use your points for this, but if you have more points than you need this can be a great option.
Cash Out Your Points
Chase has the option to cash out your points at 1 cent per point and use that money towards a statement credit or deposit it into your bank account. You can also purchase gift cards at 1 cent per point. Just like pay yourself back, these options aren’t recommended unless you have more points than you need or really need the cash.
Access to the Chase Luxury Hotel Collection
You get access to the Chase Luxury Hotel Collection by holding this card. This entitles you to complementary breakfast for 2, early check in and late check out, complementary room upgrade, complementary wifi, and a property specific benefit such as a spa or dining credit worth $100. The early check in and late checkout and room upgrade are based on availability, so if the hotel is 100% booked you may not receive these benefits.
If you would like to sign up for the Chase Sapphire Preferred I would greatly appreciate you using my referral link to sign up. https://www.referyourchasecard.com/6a/2MEGISJSI1
I do get 15,000 points if you use my link. That allows me to travel more and bring you more great content. 🙂
If you would like to read the fine print of all of the Travel and Purchase Protections the card offers, here is a link to the Guide to Benefits effective September 17, 2022. https://mostlyfreetravel.com/wp-content/uploads/2022/09/ChaseSapphirePreferredBenefitGuide.pdf
If you would like to read about Chase’s rewards categories, here is the link. https://www.chase.com/personal/credit-cards/rewards-category-faq
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