What To Know
- If you’re added as an authorized user on someone else’s Chase Sapphire Preferred® Card account, you’ll receive all the benefits of the card without paying the annual fee.
- If you value the card’s rewards and benefits, and you can afford the annual fee, then the card can be a valuable addition to your wallet.
- However, if you don’t plan on using the card’s benefits frequently or if you’re on a tight budget, there are other credit cards with lower annual fees that may be a better fit.
The Chase Sapphire Preferred® Card carries an annual fee of $95. This fee is charged once per year, on the anniversary of your account opening. While the annual fee may seem like a drawback, the card’s generous rewards and benefits can potentially offset its cost.
Benefits That Outweigh the Annual Fee
Despite the annual fee, the Chase Sapphire Preferred® Card offers a range of valuable benefits that can make it a worthwhile investment:
- Earn Ultimate Rewards points: Earn 2x points on travel and dining, and 1x point on all other purchases.
- Sapphire Reserve cardmember bonus: Earn 10% back on points redeemed for travel through Chase Ultimate Rewards®.
- No foreign transaction fees: Avoid the 3% fee charged by many credit cards for international purchases.
- Travel protections: Enjoy trip cancellation/interruption insurance, baggage delay insurance, and lost luggage reimbursement.
- Airport lounge access: Receive complimentary access to over 1,300 airport lounges worldwide through Priority Pass™ Select.
- Annual Ultimate Rewards bonus: Earn a bonus of 60,000 Ultimate Rewards points after spending $4,000 within the first 3 months of account opening.
Factors to Consider
Before deciding if the Chase Sapphire Preferred® Card is right for you, consider these factors:
- Your spending habits: If you frequently spend on travel and dining, the 2x points earning rate can quickly offset the annual fee.
- Your travel needs: The card’s travel protections and lounge access can be invaluable if you travel frequently.
- Your credit score: The Chase Sapphire Preferred® Card requires a good to excellent credit score to qualify.
- Alternative cards: There are other credit cards with similar benefits and lower annual fees. Compare options to find the best card for your needs.
How to Avoid the Annual Fee
There is one way to potentially avoid the Chase Sapphire Preferred® Card‘s annual fee:
- Become an authorized user: If you’re added as an authorized user on someone else’s Chase Sapphire Preferred® Card account, you’ll receive all the benefits of the card without paying the annual fee.
Is the Chase Sapphire Preferred Annual Fee Worth It?
Whether or not the Chase Sapphire Preferred® Card’s annual fee is worth it depends on your individual financial situation and spending habits. If you value the card’s rewards and benefits, and you can afford the annual fee, then the card can be a valuable addition to your wallet. However, if you don’t plan on using the card’s benefits frequently or if you’re on a tight budget, there are other credit cards with lower annual fees that may be a better fit.
Alternatives to the Chase Sapphire Preferred
If you’re not convinced by the Chase Sapphire Preferred® Card, here are some alternative credit cards to consider:
- Chase Freedom Unlimited®: No annual fee, earns 1.5% cash back on all purchases.
- Capital One Venture X Rewards Credit Card: $395 annual fee, earns 2x miles on all purchases.
- American Express® Gold Card: $250 annual fee, earns 4x points on dining and groceries.
Final Thoughts: The Value of the Chase Sapphire Preferred
The Chase Sapphire Preferred® Card offers a compelling combination of rewards, benefits, and travel protections. While the annual fee may be a deterrent for some, the card’s potential value can far outweigh its cost. By carefully considering your spending habits and financial situation, you can determine if the Chase Sapphire Preferred® Card is the right choice for your financial journey.
Frequently Asked Questions
Q: How do I redeem my Ultimate Rewards points?
A: You can redeem your points for travel, cash back, gift cards, and other merchandise through Chase Ultimate Rewards®.
Q: Is the Chase Sapphire Preferred® Card metal?
A: No, the Chase Sapphire Preferred® Card is made of a durable plastic material.
Q: Can I earn points on balance transfers?
A: No, you cannot earn points on balance transfers.
Q: What is the minimum credit limit for the Chase Sapphire Preferred® Card?
A: The minimum credit limit varies depending on your creditworthiness.
Q: Can I transfer my Ultimate Rewards points to other loyalty programs?
A: Yes, you can transfer your points to a variety of airline and hotel loyalty programs.
