Why the Chase Sapphire Preferred should still be your first rewards card

May 10, 2024Last Updated: May 10, 2024

0 219

Why the Chase Sapphire Preferred should still be your first rewards card

It’s easy to decide that you want to be able to travel for less. It can be difficult to know where to start. And although we have instructions on Start with points and milesthe advice doesn’t even need to have much to do with parsing through instructions.

Most of the time, my number one recommendation for those who want to dig deeper into earning points and miles is Firstly receive Chase Sapphire Preferred® Card.

It’s a classic travel rewards credit card has been around for 15 years but that doesn’t mean it’s outdated. In reality, that means this is a classic that has stood the test of time since it was released in 2009. But in this case, it’s hard to go past this classic when started in the rewards credit card scene.

So no matter which card you’re looking to start with — or which card to get next — here are five reasons why the Chase Sapphire Preferred remains my most frequently recommended card.

Great welcome offer

The sign-up bonus for the Sapphire Preferred varies, but as it stands, it’s pretty great: 75,000 Ultimate Rewards points after spending $4,000 in the first three months.

TPG value 75,000-point bonus at $1,538, but that’s based on maximizing points with Chase’s airline and hotel transfer partners.

Study to maximize your Chase Ultimate Rewards points with transfer partners – such as Hyatt and United – takes a bit of research but is worth a ton of benefits once you start using transfer partners that have valuable Ultimate Rewards points.

However, even if you use points directly for travel booked through Chase Travel℠, you will still receive 1.25 cents in value per point. Even at a lower flat pricing than if you maximize your points with partners, it’s still a great sign-up bonus that doesn’t require much effort to use.

Excellent transfer partner

Once you get the hang of it, the lineup of transfer partner available with the Chase Sapphire Preferred is awesome.

Daily newsletter

Gift your inbox with the TPG Daily newsletter

Join over 700,000 readers to get breaking news, in-depth guides and exclusive offers from TPG experts

These transfer partners are:

Aer Lingus AerClub
Air Canada aircraft
Air France-KLM Fly Green
British Airways Executive Club
Emirates Skywards
IHG Rewards
Iberia Plus
JetBlue TrueBlue
Marriott Bonvoy
KrisFlyer of Singapore Airlines
The reward is quick to the southwest
United MileagePlus
Virgin Atlantic Flying Club
World of Hyatt

Unlike other card programs, transfers from Chase to these partners have a 1:1 ratio (or higher, with occasional transfer bonuses).

This means that 75,000 Chase Ultimate Rewards points can be converted into the equivalent of 75,000 Southwest Rapid Rewards points – or United MileagePlus miles, World of Hyatt points, and the list goes on. This opens up more ways to use your points than if your points were locked to earning and redeeming with a loyalty program.

Some transfer partners – such as United and Southwest – are relatively unique to Chase, so this product line cannot be easily replicated with most other credit card programs.

US-based loyalty programs are often a more comfortable place for beginners to get travel rewards by transferring points than some international options where you can take advantage of booking partner’s place. Luckily, Chase has something to get you started.

Low annual fee with additional perks

Premium travel rewards cards like American Express Platinum® Card and the luxury version of the Sapphire Preferred, Reserve Chase Sapphire ® , has taken the place of the Chase Sapphire Preferred in my own wallet. However, I travel multiple times per month and have been in the points and miles game for a long time.

Even if those cards are worth it — and they may be — it’s rare to have the points and miles that a newbie would want to start with a card with a $695 annual fee (see exchange rates and fees for Amex Platinum) or $550 (for Sapphire Reserve).

It can be much easier to test the waters with a card like the Sapphire Preferred, with just a $95 annual fee. That’s the minimum investment to try out the new card for at least a year.

Note that a relatively recent card refresh has added even more perks that may offset some of the annual fee. For example, you can enjoy one $50 hotel credit annually on stays booked through Chase Travel, and you’ll also earn 10% of your points back each year (based on your card spending).

Good earnings rates can improve over time

The Sapphire Preferred doesn’t have the highest earnings rate available, but it still offers solid returns on many purchases – including Newer categories launched in recent years:

5 points per dollar on travel booked through Chase Travel
5 points per dollar on Lyft rides (through March 31, 2025)
3 points per dollar on dining
3 points per dollar on select streaming services
3 points per dollar on online grocery purchases (excluding Target, Walmart and wholesale clubs)
2 points per dollar on all travel not booked through Chase Travel
1 point per dollar for everything else

These categories are quite broad and touristic includes everything from airline and hotel tickets to metro and parking garage tickets. Dining includes everything from a five star restaurant to fast food and DoorDash delivery service.

Since TPG values the points earned with this card at 2.05 cents each, you’ll get value from 2.05 to 10.25 cents for every dollar charged to the card, depending on the category you choose. are spending. However, when you’re ready to “level up,” the Sapphire Preferred and its points can grow with you.

Easy-to-use bonus

The most mathematically rewarding way to maximize your Ultimate Rewards points is to switch to the previously mentioned hotel and airline partners when award availability is in your favor. However, I like this card for beginners because there is no need to do so. Actually, I have much Friends and family members never redeem their Chase points through transfer partners.

You can use your Chase Ultimate Rewards points at a flat rate to book flights, hotels, and other travel via Chase Travel. With the Sapphire Preferred, each of your points is worth 1.25 cents when used that way. If you or someone else in your family ever received one Chase Sapphire SanctuaryPoints used in that way are worth 1.5 cents each with that card.

The booking site works just like booking travel through an online travel agency like Expedia, making using your points simple and intuitive even for those new to the ways of travel. This at a lower cost.

Chase makes it easier to get approved when you’re new to a rewards card

Last but not least, there’s the fact that Chase makes it easier for you to get a Chase-issued credit card before you get too far into your rewards credit card journey.

There’s an unwritten but well-documented rule that Chase generally won’t issue a new credit card account when you’ve opened five or more card accounts across all banks in the past 24 months.

Informally, this is called Follow the 5/24 rule. That seems easy enough if you usually only get a new credit card every few years, but when you get credit card rewards, you can easily use those slots when you get your airline card. , hotel card, etc.

Because of this limitation, it’s a good idea to start by getting a Chase card, such as the Sapphire Preferred, as one of your first cards before you can hit a brick wall when opening a new Chase account for a while.