Chase Sapphire Preferred Review: A Clear Travel Rewards Credit Card Leader

The Chase Sapphire Preferred® Card is good for cardholders who love to travel and want a credit card that doesn't break the bank. It has a huge welcome offer and some of the best travel points in the business -- and all for a $95 annual fee.

Check out our full review to see why it's one of the most popular travel cards.

Is the Chase Sapphire Preferred worth it?

The Chase Sapphire Preferred® Card is a bargain for $95. It has a $50 annual hotel credit, which already covers more than half the yearly fee. It can also save you hundreds or even thousands of dollars per year with its travel rewards program.

Author's personal experience

I'm a huge fan of the Chase Ultimate Rewards program, and I opened a Chase Sapphire Preferred® Card several years ago to save on travel. It definitely helped with that -- I've used Chase points to cover a four-star hotel stay in Manhattan (at the Thompson Hotel by Hyatt, right next to Central Park) and business-class airfare.

I also really like the customer experience with Chase. The online platform, including its Ultimate Rewards site, are well-designed, and so is the mobile app. I've had credit cards from just about all the major card issuers, and I consider Chase's platform one of the best.

Spectacular travel rewards program that can take you anywhere

When you want to book a trip using your travel points, it's nice to have options. This card is part of the Chase Ultimate Rewards program, a huge benefit and a reason this is one of the top travel cards. Through this program, you can transfer your points to over a dozen airline and hotel partners.

This gives you the flexibility to book all kinds of trips. Here are a few examples:

• Want to practice your Spanish (and eat a whole lot of tapas) in Spain? You could transfer your Chase points to Iberia to book your airfare.
• Looking to save on a costly hotel stay? If there's a Hyatt where you're going, transfer your Chase points there -- Hyatt hotels are a steal when you book with points.
• Hoping to visit Paris in the spring? Send those Chase points over to Air France and KLM's Flying Blue program, and you'll be able to book that ticket in miles instead of cash.

These are all ways I've used my own Chase points, and I've saved over $5,000 multiple times on flights and hotel stays. Not only does being able to transfer your points give you flexibility, you can get incredible value.

The Ultimate Rewards program gives you other options, too. Another popular choice is booking travel through Chase's portal and paying in points. You get $0.0125 per point, so 10,000 points are worth $125 this way. But to get the most from Chase points, transfers are the best option. Learn more about how to do that in The Ascent's guide to Chase Ultimate Rewards points.

Big bonus opportunities help you earn points more quickly

If you use this card regularly, you shouldn't have any trouble earning points. For starters, the welcome offer is 75,000 bonus points for spending $4,000 in the first 3 months.

That's one of the most valuable welcome offers, especially considering the low annual fee. It's competitive with what cards that cost $500 or more offer. You could easily use that many points to cover multiple flights or hotel stays.

You'll also be earning bonus points on everyday spending and travel purchases:

• Whether you go out to eat or place a delivery order, this card earns 3X points per $1 on dining.
• You earn the same rate of 3X points per $1 for online grocery orders and select streaming services.
• This card earns 2X points to 5X points per $1 on travel purchases, depending on the type of travel purchase.

Partner benefits that could save you some extra cash

Chase says that the Chase Sapphire Preferred® Card offers over $150 in partner value. It's technically true, although I wouldn't get your hopes up about saving that much. Here's a quick look at where all this value is coming from:

• Complimentary DoorDash DashPass subscription for a minimum of one year when you activate by Dec. 31, 2024 ($96/year value)
• Complimentary six-month Instacart+ membership when you activate by July 31, 2024 (auto-renews, $60 value)
• Quarterly $15 Instacart credit for Sapphire Preferred Instacart+ members through July 2024
• 5X points per $1 on Peloton equipment and accessory purchases over $150 through March 31, 2025 ($75 value when you purchase a Peloton bike and redeem for cash)

If you like getting food delivered, you'll probably enjoy having this card. The DoorDash and Instacart benefits are both easy to use, plus you'll earn bonus points on purchases with those delivery apps. And if you also happen to be buying a Peloton bike, even better.

Travel and purchase coverages in case anything goes wrong

There's nothing like renting a car and hearing that you personally could be on the hook for some absurd sum of money if anything happens to it. If you pay the full rental cost with your Chase Sapphire Preferred® Card, and decline the add-on the rental company wants to sell you, you won't need to worry about that.

Since this credit card has an auto rental damage collision waiver, it provides complimentary coverage. It's also primary coverage, meaning you wouldn't even need to file a claim with your own insurance first (many travel cards have secondary coverage that only kicks in after your own insurance is exhausted).

That's one of many complimentary protections. Others include:

• Trip cancellation/interruption insurance
• Baggage delay insurance
• Trip delay reimbursement
• Travel and emergency assistance services
• Purchase protection
• Extended warranty protection

$50 annual hotel savings that could be tricky to use

This card offers up to $50 in statement credits per account year toward hotel stays purchased through Chase Travel. You could look at it like a $50 annual discount on hotels -- but there's a catch.

Chase Travel doesn't always have the best prices. Sometimes it does, or it's equal to what the hotel charges. But sometimes it charges more. This is still a useful benefit, but booking hotels through Chase Travel can be hit or miss.

The benefits are a lot to keep track of

With all that it offers, the Chase Sapphire Preferred® Card can be a handful. It gives you what seems like a million ways to use your points. Transfer them. Book travel with points in Chase's portal. Get cash back. Shop for Apple products. Those are just some of your options. Don't forget about the card's $50 hotel credit, or the partner benefits with DoorDash, Instacart, and Peloton, either.

Its list of features feels like one of those never-ending infomercials with add-on after add-on. It starts out strong, but you eventually wonder how many of these perks you're actually going to use.

These benefits could be valuable, if you know you'll use them and you don't mind keeping track of everything. Just know that there's a learning curve involved, both in making the most of this card's features and figuring out how to use your points.

It doesn't have many premium perks to upgrade your travel experience

This Chase card is great at helping you pay for your trips, particularly airfare and hotels. But it doesn't have the kind of luxury travel perks that improve your experience along the way.

You won't be getting into any airport lounges with this card. That's understandable for a $95 annual fee, but there are cards in this price range that at least offer a few lounge passes per year. You also won't get silver or gold status with your favorite hotel with this card. And it won't pay for your Global Entry/TSA PreCheck membership, so you can get through airport security faster.

If you were hoping for some high roller perks, you'll need to look at other credit card reviews for travel cards with higher annual fees. But if those don't matter to you, then the Chase Sapphire Preferred® Card will probably have everything you need for a reasonable annual fee.

Chase Sapphire Preferred credit score

The Chase Sapphire Preferred® Card is intended for people with good credit, or a FICO® Score of at least 670. Keep in mind that your credit score isn't the only thing that matters. Another important factor with this card is Chase's 5/24 rule, an unofficial rule the card issuer has -- it normally denies any applicant who has already opened five or more credit cards in the last 24 months.

Pre-approval process

Chase occasionally has a pre-approval tool on its website, but this isn't always available. When it's available, you can use it to see if you're pre-approved for Chase credit cards, including the Chase Sapphire Preferred® Card.

Regular APR

The Chase Sapphire Preferred® Card has a 21.49%-28.49% Variable APR. Like most travel cards, it doesn't have a 0% intro APR, so it's not a good choice if you want to carry a balance.

Fees

Here are the fees for the Chase Sapphire Preferred® Card:

• Annual fee: $95
• Balance transfer fee: Either $5 or 5% of the amount of each transfer, whichever is greater.
• Cash advance fee: Either $10 or 5% of the amount of each transaction, whichever is greater.
• Foreign transaction fee: None
• Late payment fee: Up to $40
• Returned payment fee: Up to $40

Credit limit

The minimum starting credit limit for the Chase Sapphire Preferred® Card is $5,000, according to the pricing and terms. Credit limits can be much higher, as they depend on your income and credit score. Some cardholders have reported credit limits of up to $50,000.

If you want luxury travel perks: The Chase Sapphire Reserve® is a big step up in Chase's lineup. It has a much larger annual fee ($550), but you also get far more benefits. This card has a $300 annual travel credit, airport lounge access, and points are worth even more for travel bookings.

If you want an unlimited 2x miles on purchases: The Capital One Venture Rewards Credit Card has a much more straightforward rewards program. While it doesn't have all the bonus categories of the Chase Sapphire Preferred® Card, it earns a regular rate of 2X miles per $1. That makes it a card you can use anywhere.

Our credit card methodology

At The Motley Fool Ascent, we rate credit cards on a five-star scale (1 = poor, 5 = best). Our rating criteria includes rewards rates, welcome bonuses, fees, and perks like travel credits and 0% intro APR offers to evaluate our ratings.

We combine these factors with an evaluation of brand reputation and customer satisfaction to ensure you're getting the best card recommendations. Learn more about how The Ascent rates credit cards.