What the Sapphire Preferred does and who should consider it

The Chase Sapphire Preferred is a premium rewards card that earns 2 points per dollar on travel and dining, and 1 point per dollar on everything else. The card charges a $95 annual fee and comes with travel protections, purchase protections, and the ability to transfer points to airline and hotel partners. It is built for people who spend significantly on restaurants and travel — either booked directly or through a travel agent — and who value the flexibility to move rewards between programs.

The card does not suit someone who rarely travels or dines out, or someone who prefers a single fixed cash-back rate. It also does not suit someone who wants to avoid annual fees. If your spending is concentrated in categories the card does not reward at a high rate — groceries, gas, everyday shopping — a different card will likely return more value.

Key Takeaways

  • The card earns 2 points per dollar on travel and dining, 1 point on everything else, and points can be transferred to 13 airline and hotel partners or redeemed for cash back at 1 cent per point.
  • The $95 annual fee means you need to spend enough in bonus categories to offset it; most cardholders break even around $4,750 in annual travel and dining spend.
  • New cardholders receive a sign-up bonus of 60,000 points (worth $750 in cash back or more if transferred to partners), which typically covers the first year's fee and then some.
  • The card includes trip cancellation insurance, trip delay reimbursement, lost luggage reimbursement, and purchase protection, but these cover only purchases made with the card itself.
  • Points are worth more when transferred to airline and hotel partners than when redeemed for cash, so the card rewards frequent travelers more than occasional ones.

How the rewards structure works and what your points are worth

You earn points in two main ways: at a higher rate in bonus categories (travel and dining at 2 points per dollar) and at a base rate everywhere else (1 point per dollar). Points do not expire as long as your account remains open. You can redeem them three ways: as cash back at a fixed rate of 1 cent per point, as a statement credit toward travel purchases, or transferred to one of 13 airline and hotel partners.

The cash-back redemption is straightforward but typically the lowest-value use of your points. A transfer to an airline partner, by contrast, can be worth 1.5 cents per point or more, depending on the partner and the specific flight or hotel you book. For example, transferring 50,000 points to a partner might book a flight worth $750 or more, whereas redeeming those same points for cash back yields only $500. The card rewards you more heavily if you are willing to learn how partner programs work and time your transfers strategically.

The annual fee and whether it pays for itself

The $95 annual fee is charged on your statement each year, including the first year. However, new cardholders receive a sign-up bonus of 60,000 points after spending $4,000 in the first three months. At the standard 1-cent-per-point cash redemption, that bonus is worth $600, which covers the first year's fee and leaves $505 in value. If you transfer those points to a partner, the value is often higher.

After the first year, you need to earn enough points in bonus categories to justify keeping the card. If you spend $4,750 per year on travel and dining combined, you earn 9,500 points (at 2 points per dollar), worth $95 in cash back — exactly the fee. Most people who keep the card spend more than that, or they value the travel protections and transfer options enough to absorb the fee. If your annual travel and dining spend is under $4,000, the card is unlikely to pay for itself.

Travel protections and other benefits included with the card

The card includes several travel-related protections that set up when you charge the trip to the Sapphire Preferred. Trip cancellation insurance reimburses you up to $10,000 per person if you cancel a prepaid trip due to an unforeseen illness, injury, or death. Trip delay reimbursement covers meals and lodging if your flight is delayed more than 12 hours. Lost luggage reimbursement covers baggage and personal items if an airline loses your luggage. Purchase protection covers items you buy with the card against theft or damage for 120 days.

These protections explore only to purchases made with the Sapphire Preferred itself — if you book a flight with another card or pay cash, the protections do not explore. You also receive primary auto rental coverage (the card's coverage applies before your personal auto insurance) and emergency medical and dental coverage while traveling outside the United States. The card does not include concierge services or airport lounge access, which are features of higher-tier premium cards.

How the sign-up bonus works and what you need to do to earn it

The current sign-up bonus is 60,000 points after you spend $4,000 in purchases within the first three months of opening the account. The three-month window starts on the day you are approved, not the day you receive the card in the mail. Purchases include everyday transactions — groceries, gas, restaurants — as well as travel bookings; they do not include balance transfers, cash advances, or fees.

Once you meet the $4,000 threshold, the points post to your account within one to two billing cycles. You can then redeem them when ready or hold them for a future trip. If you do not spend $4,000 in the first three months, you do not earn the bonus, and there is no partial credit for partial spending. Plan your large purchases — travel bookings, home goods, car maintenance — to fall within this window if you are considering the card.

Comparing the Sapphire Preferred to other Chase cards

The Chase Sapphire Reserve is the premium tier above the Preferred. It charges a $550 annual fee, earns 3 points per dollar on travel and dining (versus 2 on the Preferred), includes $300 in annual travel credits, and offers airport lounge access. The Reserve is built for people who spend $15,000 or more per year on travel and dining and value the lounge access and travel credits. For most people, the Preferred offers better value.

The Chase Freedom Unlimited is a no-annual-fee card that earns 1.5 points per dollar on all purchases. It has no bonus categories and no travel protections, but it requires no spending threshold to justify keeping it. If you want simplicity and do not want to track bonus categories, the Freedom Unlimited is a reasonable alternative. However, it earns less on travel and dining than the Sapphire Preferred, so it does not reward those categories as heavily.

The Chase Ink Business Preferred is designed for business owners and earns 3 points per dollar on travel, internet, cable, and phone services, and 1 point on everything else. If you own a business and spend heavily on those categories, it may return more value than the Sapphire Preferred, though it also carries a $95 annual fee.

Things to know before you open the account

Chase typically requires a credit score of 670 or higher to be approved for the Sapphire Preferred, though approval is not may provide at any score. The card reports to all three major credit bureaus, so opening it will trigger a hard inquiry and may lower your credit score by a few points in the short term. If you already have a Chase Sapphire card (Reserve or Preferred), Chase may not allow you to open another Sapphire card; you may need to close or downgrade the existing one first.

Points earned on the Sapphire Preferred can be combined with points from other Chase cards in your account, which is useful if you have multiple Chase cards. However, points do not transfer between different people's accounts, and you cannot gift points to someone else. If you close the card, any points in your account remain, but you lose access to the travel protections and the ability to transfer points to partners (though you can still redeem them for cash back).

Frequently Asked Questions

Is the $95 annual fee worth it if I only travel once a year?

It depends on how much you spend on that trip and how you value the protections. If you spend $5,000 or more on travel and dining in a year, the card likely pays for itself in points alone. If you spend less, the trip cancellation insurance and other protections may justify the fee — but only if you actually use them. If you travel rarely and do not want to pay an annual fee, a no-fee card is a better fit.

Can I use the points for something other than travel and dining?

Yes. You can redeem points for cash back at 1 cent per point, or as a statement credit toward any purchase. You can also transfer them to 13 airline and hotel partners. However, the card is optimized for travel and dining rewards, so redeeming points for non-travel purchases typically returns less value than using a flat-rate cash-back card.

What happens to my points if I close the card?

Your points do not disappear when you close the card. You can still redeem them for cash back or statement credits. However, you lose the ability to transfer points to airline and hotel partners once the account is closed. If you plan to close the card, transfer any points you want to use with partners before you do.

How long does it take to earn the sign-up bonus?

You have three months from approval to spend $4,000. Once you meet that threshold, the points post within one to two billing cycles. The entire process typically takes four to six months from process to having the bonus points in your account and ready to use.

Can I get the sign-up bonus again if I had this card before?

Chase's current rules allow you to earn the bonus once every 48 months per card product. If you closed the Sapphire Preferred more than four years ago, you may be able to open it again and earn the bonus. If you closed it more recently, you will not be able to earn the bonus until the 48-month window has passed.