Chase Sapphire Preferred® Credit Card Review

In the world of credit cards, the Chase Sapphire Preferred® Credit Card stands out as a versatile and rewarding option for those who love to travel, dine out, and enjoy a wide range of benefits. With its robust points system, significant sign-up bonus, and various travel protections, this card is designed to offer value and convenience to its users. As a financial expert, I have delved deep into the features, benefits, and potential drawbacks of the Chase Sapphire Preferred® Credit Card to provide you with an in-depth review. Let’s explore what makes this card a popular choice among consumers and whether it aligns with your financial needs and lifestyle.

Chase Sapphire Preferred® Credit Card Review

The Chase Sapphire Preferred® Credit Card is a popular travel rewards card that offers a variety of perks and benefits to its users. It is known for its generous points system, which allows cardholders to earn points on everyday purchases and redeem them for travel, dining, and more. Here are some key details about the card:
– Annual Fee: $95
– Sign-Up Bonus: 60,000 bonus points after spending $4,000 on purchases in the first 3 months from account opening. This is equivalent to $750 toward travel when redeemed through Chase Ultimate Rewards®.
– Points System:
– 5x points on travel purchased through Chase Ultimate Rewards®, excluding hotel purchases that qualify for the $50 Anniversary Hotel Credit.
– 3x points on dining, including eligible delivery services, takeout, and dining out.
– 3x points on online grocery purchases (excluding Target, Walmart, and wholesale clubs).
– 3x points on select streaming services.
– 2x points on other travel purchases.
– 1x point per dollar spent on all other purchases.
– APR: 21.49% – 28.49% variable
– Credit Score Requirement: Good to excellent (670-799)

Chase Sapphire Preferred® Key Takeaways

Generous Sign-Up Bonus

One of the most attractive features of the Chase Sapphire Preferred® Credit Card is its sign-up bonus. By spending $4,000 in the first three months, cardholders can earn 60,000 bonus points, which can be redeemed for $750 worth of travel through Chase Ultimate Rewards®. This lucrative offer is a significant draw for new cardholders and can provide a substantial boost to your rewards balance right from the start.

Versatile Points System

The card offers a robust points system that rewards users for various types of spending. With 5x points on travel purchased through Chase Ultimate Rewards® and 3x points on dining, online grocery purchases, and select streaming services, cardholders can earn points quickly and efficiently. The 2x points on other travel purchases and 1x point on all other purchases ensure that you continue to accumulate rewards on everyday spending.

Travel Protections and Benefits

The Chase Sapphire Preferred® Credit Card comes with a range of travel protections and benefits, making it an excellent choice for frequent travelers. These include trip cancellation/interruption insurance, auto rental collision damage waiver, baggage delay insurance, and trip delay reimbursement. Additionally, the card offers travel and emergency assistance services, providing peace of mind when you’re away from home.

Annual Fee and APR

While the card does come with an annual fee of $95, the value of the rewards and benefits it offers can easily outweigh this cost for many users. However, it’s important to note that the card’s APR ranges from 21.49% to 28.49% variable, which is relatively high. Therefore, it’s crucial to pay off your balance in full each month to avoid interest charges.

Chase Sapphire Preferred® Pros and Cons

Pros

– Excellent Sign-Up Bonus: The 60,000-point sign-up bonus is one of the card’s most compelling features, offering substantial value for new cardholders.
– No Foreign Transaction Fees: This makes the card an ideal choice for international travelers, as you won’t incur additional charges when making purchases abroad.
– 25% More Redemption Value: When redeeming points for travel through Chase Ultimate Rewards®, you get 25% more value, maximizing the worth of your points.
– Unique “My Chase Plan” Offer: This feature allows you to pay off purchases over time with a fixed monthly fee, providing flexibility in managing your finances.
– Great Referral Program: Earn bonus points by referring friends and family to apply for the card, adding an extra avenue for accumulating rewards.

Cons

– Annual Fee: The $95 annual fee may be a consideration for some users, although the card’s benefits can easily offset this cost.
– Steep Penalty APR: The card’s penalty APR of 29.99% is notably high, emphasizing the importance of making timely payments to avoid additional charges.
– No 0% Intro APR Offer: Unlike some other cards, the Chase Sapphire Preferred® Credit Card does not offer a 0% introductory APR period for purchases or balance transfers.

Chase Sapphire Preferred® Benefits

Rewards and Points System

The Chase Sapphire Preferred® Credit Card offers a tiered points system that rewards cardholders for various types of spending. Here’s a breakdown of how you can earn points:
– 5x Points on Travel: Earn 5x points on travel purchases made through Chase Ultimate Rewards®, excluding hotel purchases that qualify for the $50 Anniversary Hotel Credit. This is a significant earning rate for travel enthusiasts who book through Chase’s portal.
– 3x Points on Dining: Earn 3x points on dining, including eligible delivery services, takeout, and dining out. This makes the card an excellent choice for foodies and those who frequently dine out.
– 3x Points on Online Grocery Purchases: Earn 3x points on online grocery purchases, excluding Target, Walmart, and wholesale clubs. This feature is particularly beneficial for those who prefer the convenience of online grocery shopping.
– 3x Points on Select Streaming Services: Earn 3x points on select streaming services, allowing you to accumulate rewards while enjoying your favorite entertainment.
– 2x Points on Other Travel Purchases: Earn 2x points on travel purchases that are not made through Chase Ultimate Rewards®. This includes expenses such as flights, hotels, and car rentals.
– 1x Point on All Other Purchases: Earn 1x point per dollar spent on all other purchases, ensuring that you continue to rack up points on everyday spending.

Travel Protections and Insurance

The Chase Sapphire Preferred® Credit Card offers a range of travel protections and insurance benefits, providing peace of mind and financial protection when you’re on the go:
– Trip Cancellation/Interruption Insurance: If your trip is canceled or cut short due to sickness, severe weather, or other covered situations, you can be reimbursed up to $10,000 per person and $20,000 per trip for pre-paid, non-refundable travel expenses, including passenger fares, tours, and hotels.
– 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.
– Baggage Delay Insurance: 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.
– Trip Delay Reimbursement: 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.
– Travel and Emergency Assistance Services: If you run into a problem away from home, you can call the Benefit Administrator for legal and medical referrals or other travel and emergency assistance. Note that you will be responsible for the cost of any goods or services obtained.

Additional Benefits

– Purchase Protection: Covers new purchases for 120 days against damage or theft, up to $500 per claim and $50,000 per account.
– Extended Warranty Protection: Extends the time period of the U.S. manufacturer’s warranty by an additional year on eligible warranties of three years or less.
– No Foreign Transaction Fees: Enjoy the convenience of using your card abroad without incurring foreign transaction fees.

Conclusion

The Chase Sapphire Preferred® Credit Card is a powerful rewards card that offers a comprehensive suite of benefits for travelers and everyday spenders alike. With its generous sign-up bonus, versatile points system, and extensive travel protections, it provides substantial value to its users. While the $95 annual fee and high variable APR may be considerations for some, the card’s benefits can easily outweigh these costs for many cardholders.
If you frequently travel, dine out, or make online grocery purchases, the Chase Sapphire Preferred® Credit Card can be a valuable addition to your wallet. Its robust points-earning potential and travel protections make it an excellent choice for those looking to maximize their rewards and enjoy peace of mind while on the go.
As with any financial product, it’s essential to assess your spending habits and financial goals to determine if this card aligns with your needs. By doing so, you can make an informed decision and fully leverage the benefits that the Chase Sapphire Preferred® Credit Card has to offer.