My Practical Take on the Chase Sapphire Preferred Card (Early 2025): A Solid Entry-Level Travel Rewards Card

My Practical Take on the Chase Sapphire Preferred Card (Early 2025): A Solid Entry-Level Travel Rewards Card

Introduction

The Chase Sapphire Preferred® Card has long been considered one of the best entry-level travel rewards cards on the market, and for good reason. It offers an excellent balance of rewards, travel perks, and affordability, making it a great choice for those looking to get started with points and miles. Unlike premium cards that come with hefty annual fees, the Sapphire Preferred keeps costs relatively low while still delivering solid value through flexible redemption options and strong travel protections.

In this post, I’ll break down the best features of the Chase Sapphire Preferred and give my practical take on whether it’s worth adding to your wallet. Whether you’re just starting to explore travel rewards or looking for a strong mid-tier card, the Sapphire Preferred is a compelling option. But is it the right fit for you? Let’s dive in.

The Best Features of the Chase Sapphire Preferred

One of the main reasons the Chase Sapphire Preferred remains a top pick for travelers is its well-rounded set of benefits. From its generous rewards structure to its flexible redemption options, this card is designed to deliver solid value without requiring a huge commitment in annual fees.

Strong Rewards Earning Potential

The Chase Sapphire Preferred offers a lucrative rewards structure, especially for travelers and foodies. Cardholders earn 5X points on travel booked through Chase Travel℠, making it particularly valuable for those who frequently use Chase’s booking portal. Dining, select streaming services, and online grocery purchases (excluding Walmart and Target) earn 3X points, which is a solid return for everyday spending. All other travel purchases earn 2X points, and everything else earns 1X. This setup allows cardholders to rack up points quickly, especially if they spend heavily in these categories.

High-Value Welcome Bonus

One of the biggest selling points of the Chase Sapphire Preferred is its lucrative welcome offer. New cardholders can earn 60,000 bonus points after spending $4,000 in the first three months. When redeemed through Chase Travel℠, these points are worth $750, but the real potential lies in transferring them to airline and hotel partners, where they can be worth up to $1,200 or more. For an entry-level card with a modest annual fee, this is one of the best welcome bonuses available.

Travel Perks Without a High Annual Fee

Unlike premium travel cards that come with hefty price tags, the Chase Sapphire Preferred keeps things reasonable with a $95 annual fee. This makes it accessible to a wide range of travelers while still offering meaningful perks. One of the standout benefits is the $50 annual hotel credit, which applies to bookings made through Chase Travel℠. If you use this credit, it effectively reduces the card’s net annual fee to just $45. Additionally, Chase rewards loyalty by offering a 10% anniversary points bonus, which is calculated based on total spending throughout the year. These small but valuable perks help justify the annual fee while enhancing the overall value of the card.

Flexible Redemption Options

One of the biggest advantages of the Chase Sapphire Preferred is its flexibility when it comes to redeeming points. If you book travel through Chase Travel℠, your points are worth 25% more, giving you a redemption value of 1.25 cents per point. However, for those looking to maximize their rewards, Chase’s 1:1 transfer partnerships with airlines and hotels provide the opportunity for even greater value. Transferring points to partners like Hyatt, United, or Air Canada can easily yield 2 cents per point or more, depending on the redemption. This flexibility makes the Sapphire Preferred an excellent choice for those who want options when using their points.

Strong Travel and Purchase Protections

Another area where the Sapphire Preferred shines is in its travel and purchase protections, which are rare for a card at this price point. The card offers primary rental car insurance, which means you can decline the collision damage waiver when renting a car and be covered in case of damage or theft. Additionally, it includes trip cancellation/interruption insurance, baggage delay insurance, and lost luggage reimbursement. On the purchase protection side, cardholders get extended warranties and coverage against damage or theft for new purchases. These benefits can add significant value, especially for frequent travelers.

No Foreign Transaction Fees

For international travelers, the Chase Sapphire Preferred is a great companion since it does not charge foreign transaction fees. This means you can use it for purchases abroad without worrying about extra charges, which can save a significant amount over time. For a card with a relatively low annual fee, this is an important perk that makes it even more travel-friendly.

The Chase Sapphire Preferred delivers a strong combination of rewards, perks, and flexibility at a reasonable cost. In the next sections, I’ll dive into some of its downsides, how it compares to other travel cards, and whether it’s the right fit for you.

The Drawbacks – What You Should Consider

While the Chase Sapphire Preferred is a solid travel rewards card, it’s not perfect. There are a few limitations that could make it less appealing, depending on your spending habits and travel goals.

One of the first things to consider is the $95 annual fee. For frequent travelers, this fee is relatively easy to justify, especially with perks like the $50 annual hotel credit and the 10% anniversary bonus points. However, if you don’t travel often, it may be harder to get enough value to offset the cost—especially when compared to no-annual-fee cards that still offer decent rewards.

Another drawback is the card’s limited bonus categories for everyday spending. While travel, dining, streaming, and online groceries earn elevated rewards, all other purchases earn just 1X per dollar. If a significant portion of your spending falls outside these categories, you may be better off with a card like the Chase Freedom Unlimited, which earns 1.5X on everything, or the Amex Gold, which is stronger for dining and groceries.

The Sapphire Preferred also lacks premium travel perks that some competitors offer. It doesn’t provide airport lounge access, which could be a dealbreaker for those who frequently fly and want a more comfortable airport experience. Additionally, beyond the $50 hotel credit, there are no major travel credits to help offset costs—unlike premium cards that offer broad travel credits and elite-like benefits.

Another factor to keep in mind is Chase’s 5/24 rule, which can be a roadblock for approval. If you’ve opened five or more credit cards (from any issuer) in the last 24 months, Chase will likely deny your application. If you’re heavily into points and miles, this rule can be frustrating, as it may require strategic planning to get approved.

Finally, while the $50 hotel credit is a nice perk, it does come with a restriction: it’s only valid on hotel bookings made through Chase Travel℠. This can be limiting, as Chase’s travel portal may not always have the best rates or the ability to use elite status benefits. If you typically book hotels directly to maximize status perks or earn elite night credits, this credit might not be as valuable as it appears.

How the Chase Sapphire Preferred Compares to Other Popular Cards

When deciding if the Chase Sapphire Preferred is right for you, it’s helpful to compare it against other popular travel cards to see how it stacks up.

Chase Sapphire Preferred vs. Chase Sapphire Reserve
The Sapphire Preferred’s biggest competitor is its premium sibling, the Chase Sapphire Reserve. The most obvious difference is the annual fee—$95 for the CSP versus a hefty $550 for the CSR. In exchange for that higher fee, the Reserve offers more premium perks, including airport lounge access, a $300 travel credit, and better travel protections. It also offers a higher redemption rate of 1.5X through Chase Travel℠ (compared to 1.25X with the CSP). However, for many travelers, the CSP provides plenty of value without the steep cost, making it the more practical option.

Chase Sapphire Preferred vs. Capital One Venture X
Capital One’s Venture X is another strong competitor, offering a premium travel experience with a $395 annual fee. While it’s significantly more expensive than the CSP, it comes with a $300 travel credit, Priority Pass lounge access, and 2X miles on all purchases, making it a better all-around travel card for those who can use the benefits. However, the Chase Sapphire Preferred still has the edge in one key area: travel transfer partners. Chase has stronger airline and hotel partners, making it more useful for those looking to maximize their points.

Chase Sapphire Preferred vs. Amex Gold
If your spending is focused on dining and groceries, the Amex Gold might be a better fit. It earns 4X points on both categories, compared to the CSP’s 3X on dining and 1X on most groceries. However, the Amex Gold lacks the strong travel protections that the CSP offers, and its Membership Rewards program can be slightly less flexible when it comes to redeeming points. The decision between the two comes down to whether you prioritize everyday spending or travel benefits.

Chase Sapphire Preferred vs. No-Annual-Fee Cards
For those who don’t want to pay an annual fee, there are solid alternatives like the Chase Freedom Unlimited and the Wells Fargo Autograph. The Freedom Unlimited earns 1.5X on everything, making it a great option for non-category spending, while the Wells Fargo Autograph offers 3X on a broader range of categories, including travel, gas, dining, and streaming. However, neither of these cards offers 1:1 point transfers to airline and hotel partners, which is one of the biggest advantages of the Sapphire Preferred. If you’re looking for long-term travel value, the CSP still comes out ahead.

While the Chase Sapphire Preferred isn’t the perfect card for everyone, it remains one of the best choices for those looking to start earning valuable travel rewards. In the next section, I’ll break down who should (and shouldn’t) consider getting this card.

Who Should Get the Chase Sapphire Preferred?

The Chase Sapphire Preferred is an excellent fit for travelers who want to start earning valuable rewards without paying a premium annual fee. It’s ideal for those who want flexible redemption options, thanks to Chase’s excellent 1:1 transfer partners, and for travelers who value strong protections like primary rental car insurance and trip cancellation coverage. If you’re looking for a well-rounded card that earns bonus points on travel, dining, and streaming while still keeping costs manageable, the CSP is a strong contender.

However, it may not be the best choice for everyone. Casual spenders who don’t travel often or won’t maximize the bonus categories might find it harder to justify the $95 annual fee. If you’re someone who values premium perks like airport lounge access or high-end travel credits, the Sapphire Preferred may feel too basic compared to premium cards like the Sapphire Reserve or Capital One Venture X. Additionally, if most of your spending is outside of travel and dining, other cards—such as the Amex Gold for groceries or the Chase Freedom Unlimited for everyday purchases—may be a better fit.

Conclusion – Is the Chase Sapphire Preferred Worth It?

For travelers looking to get started with points and miles, the Chase Sapphire Preferred is one of the best entry-level travel credit cards on the market. It strikes an excellent balance between affordability and benefits, offering valuable rewards, strong travel protections, and flexible redemption options—all for a reasonable $95 annual fee.

If you travel occasionally and want a card that provides solid perks and flexible points without a high cost, the Sapphire Preferred is a top-tier choice. While it may not offer the premium perks of higher-end cards, it delivers exceptional value for its price point.

So, should this be your next travel rewards card? Let me know in the comments—I’d love to hear your thoughts!

Chase Sapphire Preferred FAQ

1. Is the Chase Sapphire Preferred worth the $95 annual fee?
Yes, for most travelers, the benefits outweigh the cost. The $50 annual hotel credit alone offsets more than half the fee, and the 10% anniversary points bonus adds extra value. If you use the card for travel, dining, and streaming, the rewards and protections easily justify the expense.

2. Can I have both the Chase Sapphire Preferred and the Chase Sapphire Reserve?
No, Chase only allows you to hold one Sapphire-branded card at a time. If you already have the Sapphire Reserve and want to switch, you’d need to downgrade or cancel it before applying for the Preferred.

3. How does the 10% anniversary points bonus work?
Each year, Chase gives you a bonus equal to 10% of the total points you earned from spending (not including the welcome bonus). If you earned 30,000 points in a year, you’d get an extra 3,000 points on your account anniversary.

4. What are the best ways to redeem Chase Ultimate Rewards points?
Transferring to airline and hotel partners like Hyatt, United, or Air Canada often provides the highest value, sometimes exceeding 2 cents per point. If you prefer simplicity, you can also redeem through Chase Travel℠ for 1.25 cents per point or use them for statement credits, though this isn’t the best redemption option.

5. Does the Chase Sapphire Preferred have lounge access?
No, the Sapphire Preferred does not include airport lounge access. If lounge access is a priority, consider the Chase Sapphire Reserve, which comes with a Priority Pass membership, or cards like the Capital One Venture X or Amex Platinum.

Card Review

Explore the benefits and features of the Chase Sapphire Preferred card.

The rewards program is fantastic, making travel and dining experiences even better.

Emily R.

New York

I love the flexibility of points and the travel perks offered by Chase.

John D.

Los Angeles

★★★★★

★★★★★