Chase Sapphire Preferred: The Ideal Starter Card for Rewards and Travel
It’s crazy to think of the life of the Chase Sapphire Preferred. The Preferred came out in 2009 and make huge waves in the credit card landscape. This card was revolutionary (or, as much as a credit card can be “revolutionary” without sounding like I’m pitching a pre-revenue startup) based on the points earning multipliers on dining and travel. The card came with a generous (at the time) sign up bonus and was seen as a darling for business travelers. Fast forward to 2024, and this card now has crows feet and struggled to keep up with the Joneses over the last decade plus. Don’t get me wrong, the card is still seen as a killer card for a starter travel card, but as demand for customers have increased, banks have come out with new cards that far surpass this card in earnings potential (conveniently with an increased annual fee). I do recommend this card to friends who are just starting out in credit cards for many reasons, as noted below. The earnings multiple are attractive, the points earned are beyond flexible, and the annual fee of $95 isn’t going to break the bank. If you’re someone considering jumping into the world of rewards credit cards but not sure where to start, look no further than the Chase Sapphire Preferred® Card. I say this knowing full well I have this card and almost never use it. Ironically, the last charge i had on my card was when i forgot to extend my Peloton membership pause. Luckily Peloton allowed me to cancel and get my money back (much worst than the alternative of guilting me into using my bike). The biggest perk this card has going for it is the eligibility to Transfer to Partners. As we’ll discuss throughout this series, Chase has a TON of cards that earn Chase Ultimate Rewards, but not all have the ability to transfer to partners. We’ll unlock that later, however see the below and let me know if you think the Chase Sapphire Preferred is right for you.
Generous Sign-Up Bonus -
The Chase Sapphire Preferred® Card kicks things off with a tempting sign-up bonus that's hard to resist. New cardholders can earn a substantial chunk of bonus points after meeting a reasonable minimum spend in the first few months. This bonus alone can be worth hundreds of dollars in travel when redeemed through the Chase Ultimate Rewards® program or transferred to a travel partner. It's a head start that can help justify that initial annual fee and then some. As of this article, the current offer is a new cardmember can earn 60,000 bonus points after you spend $4,000 on purchases in the first 3 months from account opening
Rewards Points and Earning Multipliers
For those who love earning while they're spending, the Chase Sapphire Preferred® doesn't disappoint. Cardholders rack up points on every purchase, with an enticing multiplier for travel and dining expenses. Whether it's a coffee run, a business trip, or a night out, you'll be earning extra points just by using your card for everyday activities. Users will benefit from 5x on travel purchased through Chase Ultimate Rewards (2x on all other travel), 3x on dining, online grocery, select streaming services, and 1x elsewhere.
Transfer to Partners
One of the highlights of this card is the flexibility it offers through 1:1 point transfer to several airline and hotel loyalty programs. This feature elevates the Sapphire Preferred® from a basic rewards card to a serious tool for travel hacking. By transferring points to partners, you could find yourself booking flights and accommodations at rates that far exceed the average point value, stretching the potential of your hard-earned rewards even further. As of this article, Chase has 11 airline partners (including popular US airlines United and Southwest), and 3 hotel partners (Marriott, Hyatt, IHG).
Reasonable Annual Fee
Many premium travel cards come with steep annual fees that can be hard to swallow for someone just starting out. Not so with the Chase Sapphire Preferred®. Its annual fee is on the lower end for a card of its caliber at just $95 per year, which means you won't feel the pressure to justify its place in your wallet. It's a small price to pay for the value you're getting, especially if you're a frequent traveler or dine out often.
Travel Redemption Bonus
The Chase Ultimate Rewards® platform amplifies the value of your points by 25% when you redeem for travel through the site. This bonus increases the purchasing power of each point, giving you more bang for your buck when booking your next trip. Whether it's flights, hotels, or car rentals, the Preferred card ensures your points take you further.
Wrapping Up
The Chase Sapphire Preferred® Card is a standout starter card for those eager to dip their toes into the world of travel rewards without the intimidation of a high annual fee or complex rewards structure. The solid sign-up bonus, robust rewards program with multipliers, transfer options to travel partners, reasonable annual fee, and additional travel redemption bonus make this card not just a great starter card, but one that might just earn a permanent spot in your wallet.
So, if you're ready to start earning rewards towards your next adventure or looking to get the most out of every dollar you spend, the Chase Sapphire Preferred® might just be the card to kickstart your journey. Why wait? The world of rewards, travel, and new experiences is just a swipe away.
