10 Reasons to Have the Chase Sapphire Preferred® Card
The Chase Sapphire Preferred® Card is one of the most popular credit cards for those looking to maximize their travel rewards, and in fact, it is the card we recommend the most for those starting in the points and miles world.
Today we want to share 10 key reasons why you should consider it beyond the welcome offer, which is often the main reason for applying for a new card.
1. Earns Flexible Points
Non-cobranded Chase cards (i.e., those not associated with hotels, airlines, or stores) are divided into two main categories:
Cashback cards, like the Chase Freedom Flex® and the Chase Freedom Unlimited®, which technically earn Ultimate Rewards points, but these can be redeemed for cash, travel, and other forms at a maximum rate of only $0.01 per point (100 points = $1). For example, a welcome bonus of $200 is earned as 20,000 Ultimate Rewards points that can be converted into $200 in cash.
Travel cards, like the Chase Sapphire Preferred® Card, Chase Sapphire Reserve®, and Chase Ink Business Preferred® Credit Card, also earn Ultimate Rewards but with a great advantage: they are flexible points.
This means that they can not only be redeemed for cash but can also be transferred to hotels and airlines for potentially greater value.
The secret to maximizing the value of points lies in their flexibility. Instead of being limited to a single airline or hotel, flexible points allow us to choose among multiple loyalty programs and strategically redeem them for luxury travel at incredibly low prices.
2. Points Are Worth 25% More When Redeemed Through Chase Travel℠
One of the most notable advantages of the Chase Sapphire Preferred® is that when redeeming your Ultimate Rewards through the Chase Travel℠ portal, each point is worth 1.25 cents instead of 1 cent.
For example: 100,000 points equate to $1,000 in cash, but they are worth $1,250 within Chase Travel.
This benefit is especially useful if you prefer to book flights and hotels without worrying about transfers to loyalty programs. It’s often convenient for economy flights in cash or for boutique hotels that do not belong to large chains.
I can redeem 7,398 points for a one-night stay at this hotel instead of paying $92.48, getting a value of 1.25 CPP automatically.
Chase Travel also allows booking activities (such as tours, excursions, transportation, recreational activities, and more), car rentals, and cruises, so we can take advantage of this additional bonus to book these types of services and get a better return for our points.
3. No Foreign Transaction Fees
If you frequently travel outside the United States, avoiding foreign transaction fees is key.
Many credit cards charge a 3% fee on all transactions made in foreign currency. It may seem small, but if you spend $2,000 on an international trip, this means an additional cost of $60 just in fees.
The Sapphire Preferred® does not charge any fees for transactions made abroad, making it ideal for use during our travels without worries.
4. It Has a Competitive Rewards Structure
The rewards structure of the Sapphire Preferred®, although not the best in our opinion, is competitive and can be useful for various spending categories. The card earns:
✔️ 5x through Chase Travel: It doesn’t matter if you book flights, hotel stays, activities, or any other service, you earn 5x on the transaction.
✔️ 3x on restaurants, streaming services, and online supermarkets: 3x on restaurants and streaming services is competitive and it can be easy to accumulate a lot of points. The online supermarket category may be more difficult to use for many people, but generally, it applies to pick-up or delivery orders directly with supermarkets (like Publix, Kroger, Whole Foods, etc.); and also services like Instacart and Amazon Fresh (excludes Walmart and Target).
✔️ 2x on travel outside of Chase Travel: This includes transactions through airlines, hotels, motels, timeshares, car rental agencies, travel agencies, cruises, trains, public transportation, tolls, buses, taxis, ferries, and even parking. Chase is quite generous regarding what is classified as travel, which is a great advantage for this and the rest of its cards.
✔️ 1x on all other purchases.
Keep in mind that, as with all credit cards, the additional points in each category will depend on how the merchant is registered on the payment network.
We have experienced paying at a café or similar that should code as a restaurant and it doesn’t, thus earning fewer points than it actually should. This is because the merchant is not correctly registered and unfortunately there is not much we can do. Generally speaking, it happens very infrequently, but it does occur, especially outside of the United States.
With this rewards structure, you will not only earn additional points when you travel, but also in your day-to-day.
5. Points From Other Cards Can Be Combined to Maximize Their Value
If you have other Chase cards like the Freedom Flex® or Freedom Unlimited®, you can transfer the points accumulated on those cards to the Sapphire Preferred® and convert them into flexible points.
Why is this important? Because cashback cards only allow you to redeem points at a maximum of $0.01 per point, but by transferring them to the Sapphire Preferred®, these points can be redeemed for $0.0125 in Chase Travel or transferred to airline and hotel programs, possibly multiplying their value by 2 and even 3, easily.
So instead of redeeming 50,000 points for $500, we can redeem them for $625 by transferring them to the Sapphire Preferred® and redeeming them through Chase Travel, or get between $1,000 and $1,500 in value or even more by transferring them to loyalty programs.
By combining the points from your Chase cards, you can optimize your strategy and take even more advantage of the value of your points.
6. Ability to Transfer to Loyalty Programs
One of the biggest advantages of this card is the ability to transfer points to more than a dozen airline and hotel loyalty programs at a 1:1 ratio, allowing us to maximize the value of our points. This includes some of the most popular airlines and hotel chains, such as United, Southwest, British Airways, Marriott, IHG, Hyatt, among others.
The ability to transfer points is essential for those who want to maximize their value since it allows access to better redemption opportunities, depending on dates and availability.
This makes the Chase Sapphire Preferred® an ideal option for those looking to maximize the value of their travel without spending too much out of pocket.
7. $50 Annual Credit on Hotels Through Chase Travel
Each anniversary with the card, you receive a credit of up to $50 that is automatically applied to your statement when you book a hotel through the Chase Travel portal.
For example, if you book a hotel night that costs $75, you pay the total and will later receive a $50 credit on your statement. If the amount is $50 or less, you will get the total amount spent. This benefit is automatic, there is no activation process involved and applies from the year the account is opened.
Consider that each year the first $50 spent on hotels through Chase Travel will not earn reward points due to the discount.
If used each year, this reduces the effective annual fee of the card to just $45! It’s an excellent benefit for a mid-tier card.
Based on our experience, the credit appears on the statement a few days after the transaction has taken place, but it may take between 1 and 2 billing cycles.
I could use the $50 annual credit to book one night at this hotel in Prague, and I would end up paying just $1.27 out of pocket.
8. 10% Bonus Points Every Year
As an additional benefit, this card offers a 10% bonus on points every anniversary based on your total spending for the year.
For example, if you spend $15,000 during the year, you earn an additional 1,500 points simply for having the card. There is no minimum spending requirement or activation needed to receive the benefit.
Although we are not going to earn a large amount of points by this means, combining it with other benefits is an additional incentive to keep the card year after year.
If we stick with the example of $15,000 spent in the year, if we earn an average of 2.5 points per dollar (mixing between the categories that earn 5x, 3x, and 2x) it implies that we would earn 37,500 points from our spending and additionally 1,500 as a bonus from this benefit, for a total of 39,000 points that would have a minimum value of $487.50 through Chase Travel.
9. Offers Excellent Travel Insurance Coverage
The Sapphire Preferred® includes several travel insurance options at no additional cost, including:
✔️ Trip cancellation and interruption insurance: Up to $10,000 per person, $20,000 per trip, and up to $40,000 for each 12-month period due to eligible trip cancellations.
✔️ Primary rental car coverage: As long as you decline the collision insurance offered by the rental company and pay the full cost of the rental with your card. Offers reimbursement of up to $60,000 for theft and on most rental cars (except ultra-luxury cars).
✔️ Delayed baggage reimbursement: You can receive reimbursement of up to $100 per day, for a maximum of 5 days, for the purchase of essential items such as toiletries and clothing when your baggage is delayed for more than 6 hours.
✔️ Luggage loss reimbursement: You can receive reimbursement of up to $3,000 per covered traveler for the cost of repair or replacement of checked baggage or carry-on luggage that is lost, damaged, or stolen during a covered trip.
✔️ Flight delay coverage: You can receive up to $500 for non-refundable expenses such as meals and accommodations per covered traveler in case of delays of more than 12 hours or that require an overnight stay.
These benefits can save you hundreds of dollars on unforeseen expenses and offer peace of mind every time you travel.
10. Earn Extra Points by Referring Friends and Family
By having this card, you can refer friends and family and earn 10,000 points for each approved referral, up to 100,000 points per year.
If you manage to refer 5 people during the year, that would be 50,000 points equivalent to $625 through Chase Travel.
A great advantage is that the referred person can choose either the Sapphire Preferred® or the Sapphire Reserve®; it does not have to be necessarily the Preferred®, and you still earn the referral bonus.
To The Point
The Chase Sapphire Preferred® Card is one of the best credit cards for those looking to maximize their travel rewards flexibly and efficiently. From its additional value through Chase Travel to the ability to transfer points to airline and hotel loyalty programs, this card offers you key benefits that make it a must-have for travelers.
If you are starting to explore the world of points and miles or if you already have experience, this card is a versatile option that not only provides immediate value but also the flexibility to optimize rewards in the long term.
