Chase Sapphire Preferred Card Review For 2020

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Learn why the Chase Sapphire Preferred® Card is one of the best options for a low annual fee, travel and dinning card.

Chase Sapphire Preferred® Credit Card

4.5

Annual Fee
$95

APR 
17.49% - 24.49% Variable

Credit Needed 
Good/​Excellent
680 - 850

EFFECTIVENESS

A Great option for dining & travel

FEES

Reasonable annual fee for a travel card

EASE OF USE

Redeeming rewards is simple

SUPPORT

Responds pretty quickly

    Credit Knocks Overall Star Rating:     

  • High Rewards Rates
  • Large Sign-Up Bonus
  • Easy Redemption Of Rewards
  • No Foreign Transaction Fees
  • Annual Fee
  • Need Good Credit To Apply

SUMMARY: 

The Chase Sapphire Preferred® is one of the best credit cards you can get if you want a good "overall" card for travel and dining. 

This is because of features like rewards that can be transferred at a 1:1 ratio to other loyalty programs and a strong sign up bonus. 

However, this card does have a $95 annual fee and probably isn't the best option for someone who is a heavy traveler. 


What's The Chase Sapphire Preferred Card?

It might not seem like it, but the Chase Sapphire Preferred card has been around for well over 10 years and has become the most well received travel card around.

It does come with a $95 annual fee, but the value it offers in travel protections and rewards points can easily make that fee seem irrelevant. 

This card is an Ultra Premium travel card with dining perks that will give any premium card a run for their money when it comes to benefits. 

And to make things better, it's a metal card... Which is pretty awesome, people completely stare when they see them for the first time.

If you don't know which travel rewards card to start with then you will know for sure it's the Chase Sapphire Preferred by the end of this review.

Who Is JP Morgan Chase? 

JPMorgan Chase Bank was founded in 1955 and is a national bank headquartered in Manhattan.

chase bank logo

They are a financial services holding company and  serve nearly half of U.S. households with credit cards, all types of personal and business loans to personal and business banking. 

JPMorgan Chase, is one of the Big Four banks of the United States and have more than 5,100 branches and 16,000 ATMs nationwide. 

In 2016 their assets were around $2.49 trillion and they have A ratings from Moody's, S&P, and Fitch for financial strength and stability.

chase sapphire preferred

Chase 5/24 Rule

Unlike most credit card issuers, Chase has instituted something called the 5/24 rule.  

This rule allows Chase to automatically deny your credit card application if you have opened up five or more credit cards within a 24 month time period. 

The goal of this rule seems to be to stop people who just want to get a credit card for the sign up bonus.   

With this being said, you should probably apply for all of your Chase credit cards first since other lenders don’t have this rule. 

Chase Sapphire Preferred® Card Basics

Below are some of the basic features of the Chase Sapphire Preferred Credit Card:

  • Card type: Travel
  • Interest rate: Ongoing APR is 17.49% - 24.49% Variable APR
  • Annual fee: $95.00
  • Lyft Rewards: 5 Points Per Dollar Spent.
  • Travel & Dining rewards: 2 Points Per Dollar Spent.
  • Base rewards: 1 Point Per Dollar Spent On Any Purchase. 
  • Foreign transaction fee: None
  • Credit reporting: Reports payment history to all three credit bureaus.
  • Cash advance fee: $10.00 or 5%, whichever is greater
  • Cash advance APR: 26.49% Variable
  • Late payment fee: Up to $39.00
  • Transfer Fee: 17.49% - 24.49% Variable APR

When you use this card right it becomes the best card to use for almost any purchase.

chase sapphire preferred card review

Benefits Of The Chase Sapphire ​Preferred

60,000 Point Sign Up Bonus

The sign up bonus for the Chase Sapphire Preferred is pretty good right now.

You can earn 50,000 bonus points after you spend $4,000.00 on purchases in the first 3 months from opening your account. 

And here’s the thing, if you redeem it through Chase Ultimate Rewards it turns out to be about $750 towards travel. 

2 Points Per Dollar For Dining & Travel

Dining and a small amount of travel makes the Chase Sapphire Preferred rewards program awesome.

You get 2 points per dollar for both dining and travel.  On average your rewards points from your Sapphire Preferred card are going to be worth about 1.25 cents each when redeemed for travel.

And guest what:

That 2 points per dollar is world wide, not just in the United states. 

1:1 Transfer Ratio With Other Programs

One feature that stands above other cards is the ability to move your rewards points from Chase to other loyalty programs at a 1:1 ratio.  

So, if you transfer 30,000 Ultimate Rewards Points to the United Rewards program, you will still end up with 30,000 United rewards points.

However, you should pay attention to the actual value of the points before they have been transferred because they could be worth less after the transfer.

The “Chase Trifecta”

The cool thing about Chase cards is that you can transfer points from other Chase cards such as the Chase Freedom Unlimited to your Sapphire Preferred card.   

Let’s say you have a Chase Freedom Unlimited card that earns 1.5% cash back on all purchases.  

Since this card doesn’t come with the 1:1 transfer ratio to other partners, you can just transfer the points to your Chase Sapphire Preferred  card and then complete the 1:1 transfer. 

Essentially making the value of your Chase Freedom Unlimited increase when you use it with another Chase card. 

Additional Bonuses

Below is a quick list of a few additional bonuses that come with the card that I wanted to mention: 

  • Primary rental car coverage of up to $75,000 for theft and collision damage
  • Trip delay reimbursement.
  • Trip cancellation or interruption insurance.

Overall this card is packed with benefits and as you can see, these benefits can easily justify the annual fee.

Quick Overview Of The Rewards Program

Your card will earn between 1% to 3.5% cash back on purchase with the traditional redemption methods based on how you earn and redeem your points.

There is also an opportunity to get about 4% cash back with certain point transfer combinations.

Knocking Out Your Intro Bonus

Before you apply for this card you need to have a plan on how to knock out the $4,000 spend over 3 months because 60,000 points are at stake.

Just think about everything you spend money on, or even a large 1 time purchase you have been putting off.

Collecting these 60,000 points is crucial and while I honestly don’t recommend going into debt just for rewards points; if you already have a plan, then it’s money you would have spent anyway.

Earning Rewards

It’s time to earn rewards points and doing it is just a simple as spending money, but spending it on the right things. 

If you are going out to eat or if you are going to be traveling you will get 2X the Ultimate Rewards points per dollar. 

For any other types of purchases (like using Plastiq to pay your monthly car note), you will get 1 rewards point per dollar spent.

And here’s the thing:

Your points will usually be worth about 1 cents each, but if you redeem them through the Chase Ultimate Rewards for travel you will get a bonus 25% which makes them worth 1.25 cents each.

So, in actuality, when you spend on travel and rewards you are really getting 3.25% cash back instead of just 2%.  That’s an additional 1.25% back.

Your Sapphire Preferred card is going to provide rewards for things like your initial reservation and other eligible purchases you make when traveling.

Redeeming Rewards

There are a few ways to redeem your Ultimate Rewards points:

Ultimate Rewards Travel Portal - Chase gives you a 25% point bonus when you redeem points through the chase ultimate rewards site, giving you an additional incentive of 1.25 cents per point. 

Transfer To Travel Partners - You can transfer your Ultimate Rewards points at a 1:1 ratio to several travel partners.  Each partner's values will vary based on their program. 

Statement Credit - You get 1 cent per point when you redeem your points as a statement credit. (Not the best option if your goal is only cash back) 

Gift Cards - You can get gift cards at 1 cent per point or less, but be sure the value is worth it because all Gift Cards aren’t created equal.

Chase Pay® - You can also use your points to pay for purchases at certain places like Amazon, but usually you will only get about .08 cents per point value.

As I stated above, and to be totally honest, the best and easiest way to redeem your points is going to be going through the Chase Ultimate Rewards portal and getting the additional 25% bonus.   

You can pay for things like: 

  • Hotels
  • Your Flights
  • ​Specific Activities
  • Car Rentals
  • Cruises 

Now get this, there are no blackout dates or travel restrictions when you book through Ultimate Rewards which is an amazing value. 

The worst thing you can do is redeem your points for statement credits, gift cards, or by paying with points, because you can get more value from them through the Chase Ultimate Rewards.

Chase Ultimate Rewards Travel Partners

Below is a list of travel partners you can do a 1:1 transfer of points with: 

Airline Partners

  • Aer Lingus - AerClub
  • British Airways - Executive Club
  • ​Flying Blue AIR - FRANCE KLM
  • Iberia Plus
  • JetBlue - TrueBlue
  • Singapore Airlines - KrisFlyer
  • Southwest Airlines - Rapid Rewards
  • ​United MilagePlus
  • Virgin Atlantic - Flying Club

Hotel Partners

  • IHG Rewards Club
  • Marriott Bonvoy
  • ​World Of Hyatt

The Sapphire Preferred® Credit Card offers you the opportunity to stay at hotels by just using rewards points.

Sapphire Preferred Vs Sapphire ​Reserve

Now, it’s super easy to get these confused when you start doing your research, but they are two completely different cards. 

The Chase Sapphire Preferred® is the lower-cost relative of the Chase Sapphire Reserve.  The card still has an annual fee of only $95.00 but it won’t come with the additional benefits of the Sapphire Reserve.

One benefit that the Sapphire Preferred Doesn't have that stands out is the annual $300 travel credit offered by the Sapphire Reserve card.

If you are a frequent traveler then the Sapphire Reserve® card is going to be your best option, especially for long-term value.

However, If you prefer to have a strong sign up bonus and want to get a strong value from points; then the Sapphire Preferred® might be a better choice.

Canceling Your Chase Sapphire Preferred Card

Now, if things change and you need to cancel your card there are a few ways to do it: 

Cancel Your Chase Credit Card Over the Phone

It’s actually really quick to cancel your Sapphire Preferred card over the phone, all you need to do is call 1.800.432.3117. 

You will be prompted to enter your card number and once you do that you can just skip the prompts and ask to speak to a representative that will assist you with canceling your card.

Cancel a Chase Credit Card With Snail Mail

Believe it or not, there are still people who prefer to cancel things by traditional mail. I wouldn’t say this is the fastest way to complete the process, but it will still get the job done. 

All you need to do is write a quick letter including your name, address, the credit card number, and a short request to cancel the account. 

You should probably send the letter certified with a return request receipt just to make sure it arrived and someone signed for it; the address is:

National Bank By Mail
Mail Code OH1-0333
340 S. Cleveland Ave.
Building 370
Westerville, OH 43081
United States

Cancel Your Chase Credit Card Online

While there isn’t much information about online cancellation, it can be done.  All you need to do is log into your account and go to the “Secure Messages” section. 

Send a quick message requesting that the card be cancelled and of course be specific if you have more than one account with them.

It usually takes 24 hours to get a response but this route will work as well.

Is There A Fee For Closing My Account?

Outside of the fees associated with your remaining balance, there is no fee for closing your account.

I would recommend keeping the card active as long as you can, there really isn't a reason to cancel the card any time soon.

Taking Action On Your Credit

Hopefully, you found this Chase Sapphire Preferred Review helpful because having a great overall card for travel and dining is essential to your wallet.

Having this card in your wallet is going to feel great and getting that sign up bonus while using all of this cards benefits is going to feel even better. 

If you have been trying to find a good all around card for daily use the Sapphire Preferred has very few rivals.

Editorial Note: The editorial content on this page is not provided or commissioned by any financial institution. Any opinions, analyses, reviews, statements or recommendations expressed in this article are those of the author’s alone, and may not have been reviewed, approved or otherwise endorsed by any of these entities prior to publication.

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