Are you a beginner traveler eager to embark on exciting adventures while maximizing rewards and benefits? Look no further than the Chase Sapphire Preferred credit card. In this comprehensive review, we’ll explore why the Chase Sapphire Preferred is the perfect choice for novice travelers and how it can help you unlock unforgettable experiences while earning valuable rewards.
This card was my very first travel card, which I got when I first moved overseas. I needed a card with no foreign transaction fee, and any additional value gained from the card would be a plus. Since then, I have amassed over 300k points and redeemed multiple free flights and hotels that have saved me thousands of dollars on my travels. It can also be used for aspirational travel opportunities that would otherwise be difficult to justify financially, such as business class flights or 5-star hotels. And after reading this guide, you can start to reap these benefits for yourself!
Chase Sapphire Preferred ® Credit Card
Annual Fee: $95
APR: 21.24 – 28.24%
Bonus Offer: 60,000 bonus points after $4000 spend within the first 3 months of account opening, worth $750 when redeemed towards travel through the Chase Ultimate Rewards Portal.
Why it’s good: Stepping into the more mid-range of credit cards, the Chase Sapphire Preferred offers an annual $50 hotel credit, a competitive 5X Chase Ultimate Rewards points in travel through their travel portal (with 2X on all other travel purchases), 3X for dining, food delivery, and streaming services. It also comes with primary car rental insurance CDW coverage, access to 11 airline and three hotel transfer partners, Lyft and Doordash benefits, and a 25% value boost on points used through their travel portal, along with many essential travel protection benefits.
Rewards Multipliers
When you make purchases with the Chase Sapphire Preferred, or any main-line Chase credit card product, you will earn 1-5X “Ultimate Rewards” points for every dollar spent, depending on the category. The primary earning multipliers on this card are
- 5X points on travel related purchases using the Chase Ultimate Rewards Travel Portal
- 3X points on dining, select streaming services, and online grocery purchases
- 2X points on travel related purchases, from airfare or hotels to even public transport fares.
The card also comes with a handful of niche benefits that you can take advantage of if it fits your lifestyle. To supplement the dining earnings, cardholders are eligible for a complimentary DoorDash DashPass subscription for a minimum of one year, which grants zero delivery fees and lower service fees on your orders. You will also receive 6 months of complimentary Instacart+ for your online grocery orders. Members will also receive up to $15 in additional statement credits each quarter to help save you some money. You can also earn 5X points when purchasing travel through Chase by using their travel portal and 5X points on Lyft rides.
Sign-Up Bonus
The Chase Sapphire Preferred also usually features a generous sign-up bonus. At the time of writing this, you can receive 60,000 Chase Ultimate Rewards points after spending $4000 within 3 months of account opening. That is equivalent to $750 in value when redeemed on travel purchases through Chase Ultimate Rewards Travel Portal.
Travel Protections and Benefits
For beginner travelers, the travel protections and benefits offered by the Chase Sapphire Preferred are invaluable. From trip cancellation/interruption insurance to primary car rental coverage, you can travel with peace of mind knowing that you’re well-protected. Plus, with no foreign transaction fees, this card is a perfect companion for international adventures.
The card comes with a $50 statement credit that can be applied to hotel bookings when you use the Chase Ultimate Rewards Travel Portal. This benefit is one way to offset the annual fee, effectively bringing it down to $45. The other points reward the retaining cardholders receive is bonus points equal to 10% of total purchases made during the previous year.
One of the strongest travel protections on the Chase Sapphire Preferred is that it offers primary CDW, or collision damage waiver, when you rent a car using this card. CDW covers costs of damages and towing if the vehicle is involved in an accident. In addition, the CDW being primary means it precedes other insurances that you may have, as opposed to secondary which would only provide coverage for any amount not covered by the driver’s own auto insurance. Not only do you not have to file a claim with your insurance, the coverage provided by primary CDW is more likely to cover the entire cost of the car damages.
There are also no foreign transaction fees for the Chase Sapphire Preferred, so it is a good card to use internationally to avoid paying extra on your trips. Other essential benefits that you can utilize are the following:
- Trip Cancellation Protection
- Trip Interruption Coverage
- Trip Delay Protection
- Lost Luggage Coverage
- Travel Accident Insurance
Redeeming Your Points
Cash
The easiest way to get value from your points is by simply exchanging them for cash, either as a bank account deposit or statement credit. Each point is worth 1 cent, so 10000 points would equal $100, for example. This is typical of traditional cash back credit cards, but this is always an option if you need the cash.
Chase Ultimate Rewards Travel Portal
One perk of the Chase Sapphire Preferred is that each point is worth 25% more when you redeem the points using the Chase Ultimate Rewards Travel Portal. Each point will then be worth 1.25 cents, and our 10000 point example becomes $125 in value.
The travel portal is a simple way to book flights, hotels, rental cars, and activities all in one place. It is also the only way to redeem the $50 hotel credit that comes with this card, so be sure to make use of that annual benefit!
Transfer Partners
The expert difficulty of gaining more value from credit card points is utilizing transfer partners such as United Airlines or Hyatt. These are hotel brands and airlines that have a partnership with Chase and allow for UR points to be converted into the respective points currency. The points are converted at a 1:1 ratio, so 1000 UR points will become 1000 points in the new system. This method is how you would gain the maximum value from your points, enabling you to book business or first class seats and incredible hotel stays with a fraction of the cash price.
For airline partners, I have personally transferred points to Singapore Airlines and Air Canada Aeroplan, the latter being used to book a business class Singapore Airlines flight to South Korea by taking advantage of the Star Alliance partnership. Although I am using these particular airlines due to living abroad in Singapore at the time of this article, other programs will also offer outsized value, it is just up to you to personally research the deals that impact you.
The golden goose of Chase’s transfer partners is World of Hyatt, where 35,000 points or less can be used to book a night at some of their most luxurious 5-star resorts around the world. A single night at some of these hotels can be upwards of several hundred to even a thousand dollars!
- Aer Lingus Aerclub
- Air Canada Aeroplan
- Air France -KLM Flying Blue
- British Airways Executive Club
- Emirates Skywards
- Iberia Plus
- JetBlue
- Singapore Airlines
- Southwest Airlines Rapid Rewards
- United Airlines MileagePlus
- Virgin Atlantic Mileage club
- IHG One Rewards
- Marriott Bonvoy
- World of Hyatt
In conclusion, the Chase Sapphire Preferred credit card is the ultimate companion for beginner travelers looking to maximize rewards and benefits while exploring the world. With its generous sign-up bonus, flexible rewards program, and travel-friendly perks, this card offers everything you need to kickstart your travel journey. If you would like to support more credit card related content, or anything related to subsidizing travel, then please help to use the following referral link to apply for the card if it matches your needs.
Chase Sapphire Preferred ® Credit Card
Annual Fee: $95
APR: 21.24 – 28.24%
Bonus Offer: 60,000 bonus points after $4000 spend within the first 3 months of account opening, worth $750 when redeemed towards travel through the Chase Ultimate Rewards Portal.
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