The Chase Sapphire Preferred (CSP) Visa Signature is a mid-tier credit card which earns cash back on multiple categories. It was refreshed around early 2022 to add new perks and ways to earn more points. CSP has a low annual fee and may appear more attractive than the Chase Sapphire Reserve (CSR). It does however share some features with no-fee cards like the Chase Freedom Flex, making the value uncertain.
FEATURES AT A GLANCE
- $95 annual fee
- No foreign transaction fees
- 5x points on travel purchased through Chase Ultimate Rewards (flights, hotels, car rentals)
- 3x points on dining/restaurants, including delivery and takeout
- 3x points on select streaming
- 3x points on online grocery purchases
- 2x points on travel
- 1x points on everything else
- $50 annual hotel credit
SIGN UP BONUS
As of March 2024, there’s a sign-up of 60,000 points after spending $4,000 in the first 3 months of card ownership. These points are worth at least $750 when redeemed for travel expenses, or $600 cash.
This is the standard introductory bonus for CSP, and has been around for years, so it isn’t likely to go lower. It might be worth waiting to see if there’s a better offer. Chase previously offered up to 80,000 points and 100,000 points. It isn’t likely that these bonuses will return, but it’s still possible.
OTHER BENEFITS OF THE SAPPHIRE PREFERRED CARD
- Visa Signature benefits, including:
- Trip Cancellation/Trip Interruption Insurance
- Trip Delay Reimbursement
- Baggage Delay Insurance
- Auto Rental Collision Damage Waiver (Primary)
- Extended Warranty
- Zero Liability Protection
- 10% anniversary points bonus
- 5x points on Lyft rides (until March 2025)
- Free 1-year subscription for Doordash Dashpass (temporary benefit, activate by 12/31/24)
- $15 per quarter in Instacart credits, plus a free 1-year subscription for Instacart+ (temporary benefit, activate by 7/31/24)
- 5x points on Peloton equipment (temporary benefit, expires 3/31/25)
- Chase Offers
RESTRICTIONS AND CREDIT SCORE
Recommended credit score: 740+
Chase Bank has the “5/24 rule.” If you’ve applied for 5 or more credit cards in the past 24 months, you’ll automatically get denied when applying for a new Chase card.
If you have a Chase Sapphire Reserve, you can’t get the Chase Sapphire Preferred, and vice versa. “This product is available to you if you do not have any Sapphire card and have not received a new cardmember bonus for any Sapphire card in the past 48 months.”
Chase’s website classifies “online grocery” as “includes purchases for grocery pickup and delivery that are placed online with grocery stores, specialty food stores or delivery service merchants that classify as grocery store merchants…. Meal kit delivery services are included.” They don’t list specific examples.
Chase’s “streaming” category (as of January 17th 2022) applies only to: Apple Music, Apple TV, Disney+, ESPN+, Fubo TV, HBO Max, Hulu, Netflix, Pandora, Paramount+, Peacock, Showtime, SiriusXM, Sling, Spotify, YouTube Premium, YouTube TV, and Vudu.
The $50 hotel credit can only be used for purchases through Chase Travel, and you don’t earn points on that first $50.
MAXIMIZING REWARDS WITH THE SAPPHIRE PREFERRED CARD
Chase Sapphire Preferred gets an extra 25% in value on points (when redeemed through Chase Ultimate Rewards or when using Pay Yourself Back) or you can transfer points to a travel partner. You therefore never want to redeem points for cash. If you get $0.0125 per point (1.25 cpp) then earning 3x points is equivalent to 3.75% cash back.
To get more than 1.25 cpp, good transfer partners can include:
- Singapore Airlines
- World of Hyatt
- Iberia Plus
- Southwest Airlines
- JetBlue Airlines
- United Airlines
- British Airways
Hyatt is generally the best transfer partner because it’s easy to get 2 cpp or 3 cpp. This transforms your “earn 3x points” into 6% or 9% cash back.
Chase cards work well together as part of the Chase Trifecta. For maximum value, combine your Sapphire Preferred with the Freedom Unlimited and/or Freedom Flex.
The CSP has an extra benefit: a 10% “anniversary point bonus.” However, it’s low enough that it’s not important for most people. Chase’s website says: “Each account anniversary you’ll earn bonus points equal to 10% of your total purchases made the previous year. That means if you spend $25,000 on purchases, you’ll get 2,500 bonus points.” 2,500 points has a $25 cash value and is a 0.1% RoS (Return on Spend). Instead of earning 3x points on some categories you’d basically earn 3.1x points.
Sapphire Preferred can theoretically be a no-fee card if you combine the annual hotel credit, anniversary points, transfer partners, and other perks. This can easily add up to more than $95 in annual value.
Points are unlimited and don’t expire as long as your account is open.
ALTERNATIVES TO THE SAPPHIRE PREFERRED
Although the Sapphire Preferred has a lot of earning potential, it usually isn’t best-in-class for its individual categories.
The no-fee Freedom Unlimited and Freedom Flex also earn 5x points on travel (through Chase) and 3x points on dining. The Sapphire Preferred is slightly better because points are worth at least 25% more, but it isn’t always a big difference. For some, the best option is the US Bank Altitude Go or Everyday Rewards+. Both earn 4% cash back on dining.
“Online grocery purchases” is highly restrictive since it doesn’t include in-store purchases, Wal-mart, Target, or wholesale clubs. Other options will usually be better, and a few cards can earn high cash back on groceries. We’d recommend the Citi Custom Cash (for anyone who spends less than $6,000 per year on groceries) or American Express Gold for much higher spenders.
CSP’s 2x points on miscellaneous travel is so-so depending on which alternatives you’re able to get. Airline and hotel cards are another consideration. In general, the Penfed Pathfinder Rewards is the best no-fee card, with $100+ in annual benefits. The CSP’s $50 annual hotel benefit is alright; it’s fairly similar to the Citi Premier‘s annual hotel credit.
The 1x points on “everything else” is easily outdone through any of the best everyday cards. Over a dozen options earn at least 2% cash back on all purchases.
Chase compares its Sapphire Preferred with the Capital One Venture. We’d agree that the Preferred is better than the Venture. However, the Venture X is better than either option, due to having an effective $-5 annual fee (if you spend at least $400 each year on travel). Sapphire Preferred has the potential to earn more points than Venture cards, but it depends on your spending habits. If you don’t pay for streaming, or online-only groceries, then CSP becomes questionable.
SAPPHIRE PREFERRED OR SAPPHIRE RESERVE?
Both cards have similarities, with the biggest perk being the ability to use transfer partners for increased value from points. See below for a quick comparison table:
The Sapphire Reserve tends to have better benefits and increased flexibility. It earns more points for travel/dining, has a variety of credits, and includes travel perks like Global Entry and Priority Pass. Reserve also has some of the best travel insurance and purchase protections on any credit card. Whether that’s worth the increased annual fee depends on your preferences. The Reserve’s effective annual fee is actually fairly similar to the Sapphire Preferred, once all credits/reimbursements/perks are considered.
CONCLUSION
Chase Sapphire Preferred is a generalist credit card with fair earn rates and benefits. The transfer partners are one of the best aspects about the card. Preferred isn’t always the best option, but it’s rarely a “bad” option. It’s often better to get a handful of no-fee cards instead. Or go bigger. Premium cards like the Chase Sapphire Reserve and Capital One Venture X can accrue more value and have more benefits.
Overall, CSP is a decent card. Its value just depends a lot on personal spending habits. Sapphire Preferred can effectively be a no-fee card for big spenders. The problem is that big spenders can get higher value from other credit cards. Then low spenders may have a hard time justifying the $95 annual fee compared to no-fee cards. Chase Sapphire cards also require other cards to unlock maximum value as the Chase Trifecta.
We rate the Chase Sapphire Preferred card 3 out of 5 stars. ⭐⭐⭐
Note: This review was last updated in March 2024. Details may have changed since then. Please do your own research where applicable, to ensure you’re getting the best deal. Or contact us directly for our personalized consulting services!