In-Depth Credit Card Review: Chase Sapphire Preferred

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In-Depth Credit Card Review: Chase Sapphire Preferred

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A Chase Sapphire Preferred review. Again. The only difference is that I don’t have links plastered all over my site (only one!) or a quota to fill for sign-ups through my page.

Now that we’ve covered some basics, it could be beneficial for some to read this review of the ubiquitous Chase Sapphire Preferred. Though this isn’t a starter card by any means, it’s a great first transferable points currency card (read here for more info on transferable points).

Sign-up:

The sign-up bonus has been increased (and will probably stay this way for a while) to 50,000 bonus points after spending $4,000 in three months. You also receive an additional 5,000 points after adding an authorized user who makes any purchase ($0.01 or $100.00, you’ll still get the additional points).

After spending the $4,000 and adding an authorized user, you’re looking at 59,000 Chase Ultimate Rewards points:

50,000 (sign-up)

+

4,000 ($4,000 spend requirement base points)

+

5,000 authorized user bonus

=

59,000

So putting that into perspective, you could (and should!) transfer those points to travel partners for a lot of unique, awesome and expensive redemptions. Let me show you:

  • 60,000 Points: Transfer to United (+ 1,000 points away) for a coach, round-trip ticket to Europe with a stopover;
  • 57,500 points: Transfer to United for one-way business class ticket to Europe on United metal;
  • 60,000 Points: Transfer to Hyatt (+ 1,000 points away) for two-nights at a top tier Hyatt in New York City, Paris, Tokyo or Sydney (usually costing anywhere from $700 – $1,000 a night!);
  • 60,000 Points: Transfer to Singapore (+ 1,000 points) for a lie-flat business class ticket from Newark to Hawaii;
  • 50,000 points: transfer to Korean Air for two, round-trip coach tickets to Hawaii on Delta metal, approximately $800 – $1000
  • 7,500 points: Six, short-haul one-ways transferring to British Airways for flights like New York-Chicago, New York-Miami, etc.
  • 45,000 Points: 3-nights at the Andaz in Costa Rica, unusually $500/night.

A Word About Transfer Partners…

Ultimate rewards transfer to:

  • United
  • Singapore
  • British Airways
  • Southwest
  • Hyatt
  • Marriott
  • IHG
  • Ritz-Carlton
  • Korean Air
  • Virgin Atlantic

The bolded partners are where you’ll get the best value for your points. I would rarely ever transfer to Marriot, IHG, or Ritz-Carlton.

Bonus Earning

When this card came out, it was all the rage to earn 2X on travel and dining. Sure, that can be helpful for earning lots of Ultimate Rewards, but there are other cards that earn 3X on those categories. (As an aside, I can see Chase working to revamp the earning on this card for the better—or so I hope).

If you’re getting this card and it’s the only one you have for travel and dining, to put it into perspective here’s what the average person household on dining (which includes Starbucks) and travel a year, with the total points earned:

Category Spending Earning Rate Points
Dining $2625 2X 5,250
Travel (excludes gas) $3,001 2X 6,002
Total 11,252

Source

Annual Fee

The annual fee is $0 for the first year and then $95 after that—is it worth to keep? Retention offers on this card are few and far between, but deciding if it’s worth to keep is up to you.

Other Important Benefits

  • No Foreign Transaction Fees—this is pretty standard cards like this;
  • Primary Auto Rental Collision Damage Waiver—If you rent a card, you need to usually pay for their primary auto insurance; if you pay your full car rental with this card, you can waive the collision insurance from the rental company.
Don't be caught in a situation like this; use your Chase Sapphire Preferred for your entire rental purchase.

Don’t be caught in a situation like this; use your Chase Sapphire Preferred for your entire rental purchase.

Why You’d Want to Get this Card Now

Though this card isn’t the bee’s knees for earning, it has solid categories and a really great sign-up bonus. Also, Chase has been tightening its rules for members who have opened more than 5 cards in 24 months. This may not apply to you right now, but if you keep reading this blog you’ll have way more than 5 cards in 24 months!

Conclusion

With a really solid sign-up bonus, and decent spending categories the Chase Sapphire Preferred offers access to some of the best airline transfer partners in the industry. You can transfer the points you earn from the Chase Freedom for free. So if you already have that card, this is a logical follow up.

If you liked this post, and want to support the site, here’s my referral link. The offer is the same as any you’d find on any page—but I’ll earn 5,000 points if you’re approved.

-The Miner


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