Why you’ll want to pay the $95 annual fee on the Chase Sapphire Preferred

The Chase Sapphire Preferred Card is widely regarded as one of the best travel credit cards on the market. Whether you’re new to the world of points and miles or a seasoned pro, this card offers a range of benefits and perks that make it worth considering, despite its $95 annual fee.

One of the biggest attractions of the Chase Sapphire Preferred is its generous welcome offer. Currently, new cardholders can earn 60,000 bonus Ultimate Rewards points after spending $4,000 on purchases within the first three months of account opening. The value of these points is estimated to be around $1,230, thanks to the card’s extensive list of transfer partners. Even if you choose to redeem your points directly through Chase for travel purchases, you can still get a value of $750, which more than offsets the annual fee.

In addition to the welcome offer, the Chase Sapphire Preferred offers a 25% redemption bonus when using points to book travel through the Chase Ultimate Rewards portal. This means that your points are worth 1.25 cents each, instead of the standard 1 cent. For example, if you book a flight for $500, it would cost you 50,000 points with a cash-back card, but only 40,000 points with the Sapphire Preferred. The 10,000 points you save are worth more than the card’s annual fee.

Another valuable perk of the Chase Sapphire Preferred is the annual $50 hotel credit. Each year, cardholders receive up to $50 in statement credits for hotel stays booked through the Chase Ultimate Rewards portal. This can significantly offset the cost of the annual fee, especially if you frequently stay in hotels.

When it comes to earning and redeeming points, the Chase Sapphire Preferred offers competitive rates. Cardholders earn 5 points per dollar on travel booked through the Chase travel portal, 5 points per dollar on Lyft purchases (through March 2025), 5 points per dollar on Peloton equipment and accessory purchases of $250 or more (through March 2025, up to 25,000 points), 3 points per dollar on dining, select streaming services, and online grocery store purchases, 2 points per dollar on all travel not booked through the Chase travel portal, and 1 point per dollar on everything else. These points can be transferred to 11 airline partners and three hotel partners, allowing for some great redemption opportunities.

In terms of additional perks, the Chase Sapphire Preferred offers a range of benefits, including DoorDash benefits, trip cancellation/interruption insurance, auto rental collision damage waiver, baggage delay insurance, trip delay reimbursement, travel and emergency assistance services, purchase protection, and extended warranty protection. While it may not have the same level of luxury benefits as some other premium cards, the Chase Sapphire Preferred still provides valuable coverage and protection.

Ultimately, the Chase Sapphire Preferred’s annual fee is easily justified by the value it offers. The welcome offer, redemption bonus, annual hotel credit, and other perks make it a worthwhile card for both beginners and experienced travelers. However, it’s important to consider your individual spending habits and credit card pairings to determine if the Chase Sapphire Preferred is the best fit for you.

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