We may earn an affiliate commission from partner links on the Entrepreneur Guide. These do not affect our editors’ opinions.
The Chase Sapphire Preferred® Card stands out as a perennial favorite in the vast universe of travel rewards credit cards.
With its great reward rates on travel and dining, versatile redemption options, and an impressive suite of travel protections, it has earned a reputation as a traveler’s best friend.
This 2023 Chase Sapphire Preferred® Card review will delve into the card’s features, rewards, and benefits to help you decide if this card is your perfect travel companion.
Related: 3 Best Business Credit Cards for Travel | Entrepreneur
Quick facts about the Chase Sapphire Preferred® Card
The Chase Sapphire Preferred® Card can be a great option. Here are the basics of what to expect:
- Impressive earning rate: The Chase Sapphire Preferred® Card offers an impressive rewards rate, with 2 points per dollar on travel and dining purchases and 1 point per dollar on all other purchases.
- Strong welcome bonus: This card has a substantial welcome bonus of 80,000 points for new cardholders who spend $4,000 within three months of opening an account — the total amounts to $1,000 when redeemed through the Chase Ultimate Rewards program.
- Solid redemption options: Points can be redeemed for travel, cash back, and gift cards through the Chase Ultimate Rewards portal. However, points are worth 25% more when redeemed for travel through Chase, making this the most lucrative option for most cardholders.
- Best travel protections: The card includes travel protections, including trip cancellation/interruption insurance, baggage delay insurance, trip delay reimbursement, and primary rental car coverage.
- Multiple travel partners: Points can be transferred at a 1:1 ratio to several airline and hotel partners, including Hyatt and Marriott. This flexibility can add significant value for those willing to navigate the transfer process and looking to generate airline and hotel credits.
- Visa benefits: As a Visa card, the Sapphire Preferred® comes with benefits like secondary car rental insurance, purchase protection, and extended warranty coverage.
- $95 annual fee: There’s an annual fee for card membership, which underscores the card’s value proposition for those who travel regularly.
- Balance transfer fees: Balance transfers are possible with this card, but there’s an associated fee. The card’s primary value is in its travel and dining rewards rather than balance transfer features.
- No travel credits: While the card doesn’t offer a general travel credit like the Chase Sapphire Reserve, it does offer reimbursement for the Global Entry or TSA PreCheck application fee every four years.
- No intro APR: The Chase Sapphire Preferred® does not offer an introductory APR during the first year. Regular APR rates will apply from the start.
- No lounge access: Unlike its premium sibling, the Chase Sapphire Reserve, the Chase Sapphire Preferred® does not offer complimentary airport lounge access.
What are the pros of the Chase Sapphire Preferred® Card?
The Chase Sapphire Preferred® Card is one of the best credit cards available. Its blend of rewards-earning potential, travel perks, and redemption flexibility make it a compelling option for travelers.
These are just some of the highlights of the Chase Sapphire Preferred® Card:
New cardholder bonus offer
One of the most enticing features of the Chase Sapphire Preferred® Card is its generous new cardholder bonus offer. After spending $4,000 in the first three months of your account opening, cardholders can earn 80,000 bonus points.
These points can be redeemed for cash back, travel, and gift cards or transferred to one of Chase’s travel partners, providing a $1,000 value boost right at the outset.
Bonus categories
The Chase Sapphire Preferred® Card rewards your spending with bonus categories, particularly focusing on travel and dining. You’ll earn more points per dollar spent on these categories, making this card a fantastic choice for frequent travelers and food enthusiasts.
New bonus categories like online grocery purchases and select streaming services provide even more ways to earn points.
Primary rental car coverage
The Chase Sapphire Preferred® Card provides primary rental car coverage, a rare feature among credit cards. If you pay for your rental car with your card, you’ll be covered for theft and collision damage in most countries, negating the need for additional insurance from the rental company.
Flexible rewards redemption
One of the most substantial perks of this card is its flexible rewards redemption options. Chase Ultimate Rewards points can be used for travel, cash back, or gift cards.
Through the Chase travel portal, points can be used to book travel, including airfare, hotel stays, and cruises, often at an increased value.
Transfer partners
Chase Sapphire Preferred® cardholders can transfer their Ultimate Rewards points to various loyalty programs, including hotel and airline partners like Marriott and Southwest. This can maximize the value of your points, especially if you frequently use these services.
What are the cons of the Chase Sapphire Preferred® Card?
As you can see, there is much to like about the Chase Sapphire Preferred® Card.
That said, there are a few glaring issues that you should be aware of before applying with this credit card issuer:
Annual fee
The Chase Sapphire Preferred® Card comes with a $95 annual fee due on the account anniversary. While the rewards and benefits the card offers can offset this fee, it might deter those who prefer no-fee credit cards.
Requires good to excellent credit
Obtaining the Chase Sapphire Preferred® Card requires a good to excellent credit score. This can limit access for potential cardholders who are still building their credit or those with a few financial missteps on their credit reports.
Related: What Is a Good Credit Score and How Do I Get One? | Entrepreneur
Complicated rewards
While the card’s rewards program is robust, it can be complicated for some users. Understanding how to best utilize the bonus categories and managing the transfer of points to partner programs might require more financial savviness and effort than more straightforward cash-back credit cards.
For those who prefer simplicity, this could be a potential drawback.
Related: Why Your Small Business Should Use a Cash-Back Card | Entrepreneur
How does the Chase Sapphire Preferred Card compare to other cards?
Chase Sapphire Preferred® vs. Capital One Platinum
The Chase Sapphire Preferred® and the Capital One Platinum cater to different segments of the credit card market.
The Sapphire Preferred®, with its generous sign-up bonus, bonus categories for earning points and travel benefits, is a rewards credit card for those who frequently travel or dine out.
On the other hand, the Capital One Platinum is a basic card geared towards those looking to build or repair their credit. It has no annual fee or foreign transaction fees, but it also lacks the rewards program of the Sapphire Preferred® Card.
Chase Sapphire Preferred® vs. Capital One Quicksilver
The Capital One Quicksilver card offers flat-rate cash back on all purchases, making it a simple and easy-to-understand card. It also comes with a decent sign-up bonus and no annual fee.
However, the Chase Sapphire Preferred® outshines it when it comes to earning potential for travel and dining, and its rewards are more flexible.
With the Sapphire Preferred®, you can transfer points to numerous travel partners, potentially getting more value than the flat cash-back rate of the Quicksilver.
Related: Capital One Quicksilver Review 2023: 7 Things To Know | Entrepreneur Guide
Chase Sapphire Preferred® vs. Citi Premier
The Chase Sapphire Preferred® and Citi Premier® are travel rewards cards but differ in their rewards structures and perks.
The Citi Premier® offers more bonus categories, including supermarkets and gas stations, potentially providing more opportunities to earn points.
However, the Sapphire Preferred® Card offers more flexible redemption options through the Chase Ultimate Rewards program. Its points can be worth more when redeemed for travel through the Chase portal or transferred to travel partners.
What is the eligibility and application process for the Chase Sapphire Preferred® Card?
Here are the key details pertaining to eligibility and applications for the Chase Sapphire Preferred® Card.
Who can apply for the Chase Sapphire Preferred® Card?
Anyone can apply for the Chase Sapphire Preferred® Card, but it’s best suited for those with a good to excellent credit score. It’s designed for cardmembers who spend a significant amount on travel and dining out and want flexibility in redeeming their rewards.
How do you apply for the Chase Sapphire Preferred® Card?
Applying for the Chase Sapphire Preferred® Card is straightforward. You can apply online by filling out a form with your personal and financial information.
The issuer then performs a credit check before approving or rejecting the application.
What are the credit score recommendations for the Chase Sapphire Preferred® Card?
The Chase Sapphire Preferred® Card targets consumers with good to excellent credit. This typically means a FICO score of 670 or above. However, your credit score is not the only factor that Chase considers when evaluating your application.
Your overall financial situation, including your income and existing debt, will also affect the eventual decision. Also, these terms apply to the overall interest rate you’ll pay for your card.
Related: 5 Simple Ways to Improve Your Credit Score and Help Your Business | Entrepreneur
Chase Sapphire Preferred® Card FAQs
What are the rewards offers for the Chase Sapphire Preferred® Card?
The Chase Sapphire Preferred® Card has an excellent rewards program. Cardholders earn 2 points per dollar spent on travel and dining and 1 point per dollar on all of their other purchases.
Cardholders earn 10x total points on Lyft rides, receive a complimentary Lyft Pink membership and earn statement credits on takeout purchases using DoorDash delivery services.
The card also has 60,000 welcome bonus points for new cardholders who spend $4,000 in the first three months.
Points can be redeemed for travel purchases through the Chase Ultimate Rewards travel portal, where they carry 25% more value or are transferred to Chase’s hotel and airline partners. The overall value for these points is roughly $1,000.
Is the Chase Sapphire Preferred® Card suitable for beginners?
The Chase Sapphire Preferred® Card can be a good fit for beginners who are comfortable with a slightly complex rewards system and travel or dine out frequently.
The card’s benefits, like trip cancellation/interruption insurance, baggage delay insurance and a collision damage waiver for rental cars, make it a valuable tool for those new to travel rewards credit cards.
However, there is an annual fee, so beginners should be confident they can take full advantage of the card’s rewards and perks to offset this cost.
Related: Best Pre-Approved Credit Cards of 2023 | Entrepreneur Guide
What is the credit limit for Chase Sapphire Preferred® Cards?
The credit limit for the Chase Sapphire Preferred® Card varies based on your creditworthiness, including factors like your income and credit history.
It’s reported that the minimum limit is typically around $5,000. Maintaining a good credit score and a low credit utilization rate can be beneficial for higher limits.
Related: 5 Ways to Get a Higher Credit-Card Limit This Holiday Season | Entrepreneur
Is the Chase Sapphire Preferred® Card right for you?
Determining if the Chase Sapphire Preferred® Card is suitable for you depends on your personal finances, spending habits and travel preferences. If you frequently travel and dine out, you can earn significant rewards.
Its suite of travel protections, including trip delay reimbursement, baggage delay insurance, and trip cancellation/interruption insurance, adds substantial value, especially for frequent travelers.
If you value flexibility in redeeming rewards, the Sapphire Preferred® Card’s ability to transfer points to various travel partners makes it a standout choice. However, the card does come with an annual fee, so you should ensure that you will utilize the rewards and benefits enough to justify this cost.
Related: The Best Rewards Credit Cards of 2023 | Entrepreneur Guide
On the other hand, if your spending is more geared toward everyday categories like groceries or gas or you seldom travel, a different card might be a better fit.
As always, it’s essential to consider your personal financial situation, spending habits, and reward preferences when choosing a credit card.
If you’re looking for more information about credit cards, check out Entrepreneur’s other articles for all you need to know.