10 Reasons to Get the Chase Sapphire Preferred

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The Chase Sapphire Preferred card is one the best travel cards on the market at the moment. It ranks #4 out my Top 10 Travel Credit Cards for May 2016.

Quick Facts

  • Sign Up Bonus: 55,000 Ultimate Rewards after $4,000 in spending in the first three months and adding an authorized user on the card
  • Category Bonuses: 2x on travel and restaurants
  • Value of Ultimate Rewards: Worth 1.25 cents toward the purchase of any cash ticket OR can be transferred to any of these six airlines and four hotels for higher value:
    • British Airways
    • Korean Air
    • Singapore Airlines
    • Southwest Airlines
    • United Airlines
    • Virgin Atlantic
    • Hyatt Gold Passport
    • IHG
    • Marriott Rewards
    • Ritz-Carlton Reward
  • Global Acceptance: Chip technology and no foreign transaction fees
  • Annual Fee: $0 for the first 12 months, $95 per year afterwards

There are 10 reasons why I am a fan of the Chase Sapphire Preferred.  

1. You will earn 50,000 Ultimate Rewards for the sign-up bonus.

2. You will earn 5,000 Ultimate Rewards after adding an authorized user.

3. Ultimate Rewards transfer to a variety of airline frequent flyer programs that employ three different types miles.

4. You can get that sign-up bonus again after a little more than 24 months.*

5. It makes your Chase Freedom and Freedom Unlimited card MUCH more valuable

6. Transfer Ultimate Rewards to Virgin Atlantic to fly to Europe for only 17,500 miles!

7. The card is accepted globally with no foreign transaction fees.

8. No annual fee collected the first year.

9. Baggage delay insurance

10. A live human being picks up the phone when you call Sapphire Preferred’s customer service.

Top 10 Reasons to Get the Sapphire Preferred

1. You will earn at least 54,000 Ultimate Rewards with the sign-up bonus and the spending it takes to unlock it. 

I value Ultimate Rewards at 2 cents each, so to me 54,000 Ultimate Rewards are worth $1,080.

You will more than likely earn even more than that if any of your spending is in restaurants or on travel, since those categories earn 2x for ever dollar spent.

2. You will earn 5,000 Ultimate Rewards after adding an authorized user. 

Definitely do this. The authorized user does NOT get a credit check. The authorized user is NOT disqualified from opening their own Sapphire Preferred and getting their own sign up bonus. The extra card is sent to you, and need not ever be used to earn you the 5,000 points. That brings the my sign-up bonus valuation to $1,180:

 $1,080 + (5000 x .02) = $1,180

Not to mention your authorized user can help you reach that minimum spending requirement much faster than you could on your own.

3. Ultimate Rewards transfer to a variety of airline frequent flyer programs that employ three different types miles.

Out of the airline transfer partners’ frequent flyer programs, four use region-based miles, one uses distance-based miles, and one uses airline points. You can read more about the different types of miles here.

It’s important to diversify across the types of miles because they all have different strengths. You want to have the best mile for the job, and you want to use the types of miles in concert.
Screen Shot 2015-11-17 at 12.37.57 AM

4. You can get that sign-up bonus again every 24 months.*

You can get the bonus on the same Chase card once every 24 months. This 24-month clock starts when you got the last bonus (which may be up to three months after you got the card).

5. It makes your Chase Freedom and Freedom Unlimited card MUCH more valuable.

The Chase Freedom and Freedom Unlimited are marketed as cash back cards. The Freedom earns 5x spending on rotating category bonuses (as well as 1x on normal sepdning) and the Freedom Unlimited earns 1.5x on all spending. But in fact, the card earns points that can be converted to cash back or can be converted, through a process I call the Freedom Two Step, to much more valuable airline miles and hotel points.

Screen Shot 2016-03-18 at 12.38.01 AM

The basic idea is that while the Freedom’s Ultimate Rewards do not transfer to airline and hotel partners, if you have a Sapphire Preferred or Ink Plus, you can transfer the points to those cards’ accounts, and from there to airlines and hotels. Having a Sapphire Preferred turns the Freedom and Freedom Unlimited into the most valuable cards for non-bonused spending. No other cards come close to offering 1.5 United/Korean/Singapore/BA/Southwest/Hyatt miles or points per dollar (Freedom Unlimited) or definitely not 5 United/Korean/Singapore/BA/Southwest/Hyatt miles or points per dollar on non-bonused spending.

6. Transfer Ultimate Rewards to Virgin Atlantic to fly to Europe for only 17,500 miles

You can fly Virgin Atlantic economy from Atlanta, Boston, New York, Washington DC, Chicago, or Detroit to London for 17,500 miles and $134.60 in taxes and fees (yes, there are fuel surcharges).

Using American Airlines miles, United miles, or Delta miles, the same flight would cost you 30,000 miles. I think it is worth saving 12,500 miles for $129 in fuel surcharges. That’s like buying miles for 1 cent each.

With the Ultimate Rewards you earn from the sign-up bonus + spending to get the sign-up bonus + adding an authorized user (59,000), you could fly to London three times and still have miles left over.

7. The card is accepted globally with no foreign transaction fees.

The Sapphire Preferred’s chip technology provides added security so you can feel safe trotting around the globe with it. And you won’t pay any pesky foreign transaction fees that can really kill the value of your awards (on many cards these fees amount to 3% of every transaction– yikes!).

When you travel as much as I do, cards with foreign transaction fees get very little to no love. And all those foreign frequent flyer programs you transfer your points to to book awards? You need a card like the Sapphire Preferred to put the taxes and fees on, unless you want to pay 3% on top.

8. No annual fee collected the first year.

The $95 annual fee is waived for the first year that your account is open. Most cards with as many perks as the Sapphire Preferred do not waive the annual fee.

9. Baggage delay insurance

This screenshot is from the Sapphire Preferred’s Featured Benefits page:
Screen Shot 2016-05-10 at 6.17.49 PM

That is stellar travel protection, offering a nice silver lining to an otherwise aggravating situation. I don’t have any personal experience with this but I did meet someone traveling in Argentina who held a Sapphire Preferred card. She was without her luggage for about a week, but an extra $100 in her budget every day made for some quality souvenirs and a good time shopping.

10. A live human being picks up the phone when you call Sapphire Preferred’s customer service.

Every Sapphire Preferred card has a customer service phone number on the back. When you call, you are not put through 19 prompts and transfers until you reach an actual (helpful) human being. A short recording plays that informs you the call will be recorded, and then a person that speaks English natively picks up. This is something that all companies–not just credit cards–could learn from in these days of never ending menus to get to a person who can solve your problem.

*Chase 5/24 Rule 

I put an asterisk by reason #4 because of a rule Chase enforces that must be considered before you apply for their cards, whether it’s for the first time or as a repeat. Make sure you haven’t opened five credit cards (any cards from any bank) within the last 24 months, or your application for the Sapphire Preferred will be denied. This is called the Chase 5/24 rule.  If you can’t remember if you’ve opened five cards in the last two years, check by requesting a credit report from one of the three national credit bureaus:

The dates in which you opened and closed accounts should be listed on all of them. You are entitled to one free credit report from each bureau per year.

Bottom Line

I am a big fan of the Chase Sapphire Preferred for numerous reasons–the high value and diversified reward earning potential, lack of foreign transaction fees and impressive customer service are just a few.

What do you love about your Chase Sapphire Preferred?

While I can not directly link to the current Sapphire Preferred offer, you may find it by clicking below if you decide to apply. (I receive a commission, and your support keeps this blog going.)


Editorial Disclaimer: The editorial content is not provided or commissioned by the credit card issuers. Opinions expressed here are author’s alone, not those of the credit card issuers, and have not been reviewed, approved or otherwise endorsed by the credit card issuers.

The comments section below is not provided or commissioned by the bank advertiser. Responses have not been reviewed, approved, or otherwise endorsed by the bank advertiser. It is not the bank advertiser’s responsibility to ensure all questions are answered.

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5 COMMENTS

  1. “With the Ultimate Rewards you earn from the sign-up bonus + spending to get the sign-up bonus + adding an authorized user (59,000), you could fly to London three times and still have miles left over”

    Of course, that doesn’t include coming back 🙂

  2. No foreign transaction fees is a good thing but unfortunately, the Sapphire card is a Visa card and their exchange rate is MUCH worse than the rate used by AmEx so in effect, the transaction cost is built into the exchange rate. Bottom line, I have stopped using my Sapphire card for foreign transactions and use AmEx of MasterCard cards with no foreign transaction fees to get a better exchange rate. This may seem like a small matter but for a recent hotel bill, the difference between using AmEx or the Sapphire card was over $100. Unfortunately, I used the Sapphire card which is how I came to understand the perils of simply thinking “no foreign transaction fees” was enough to make Sapphire the card choice. Aside from that, I love my Sapphire card and think it is an excellent choice for most folks collecting points.

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