What To Know
- The Chase Sapphire Preferred® Card is a popular travel rewards card that offers a range of benefits, including bonus points on travel purchases, airport lounge access, and travel protections.
- If you’re a frequent traveler or plan on renting a car on your next trip, the Chase Sapphire Preferred® Card can provide peace of mind.
- In addition to the rewards, travel perks, and protections, the Chase Sapphire Preferred® Card also offers a number of other benefits, including.
The Chase Sapphire Preferred® Card is a popular travel rewards card that offers a range of benefits, including bonus points on travel purchases, airport lounge access, and travel protections. However, the card comes with an annual fee of $95, which raises the question: is Chase Sapphire Preferred worth the annual fee?
In this comprehensive blog post, we’ll delve into the details of the Chase Sapphire Preferred® Card, analyze its features, and calculate the potential value you can get from it. By the end, you’ll have a clear understanding of whether the annual fee is worth paying based on your individual spending and travel habits.
Earning Rewards Points
One of the main benefits of the Chase Sapphire Preferred® Card is its generous rewards program. You’ll earn 2x points on travel and dining purchases, and 1x point on all other purchases. These points can be redeemed for a variety of rewards, including travel, gift cards, and cash back.
To determine if the rewards are worth the annual fee, let’s assume you spend $2,000 per month on travel and dining. This would earn you 4,000 points per month, or 48,000 points per year. At a redemption rate of 1.25 cents per point, this translates to $600 in travel rewards.
Travel Perks
In addition to earning rewards points, the Chase Sapphire Preferred® Card also offers a number of travel perks, including:
- Airport Lounge Access: You’ll receive complimentary access to over 1,000 airport lounges worldwide, including Priority Pass Select lounges.
- Global Entry or TSA PreCheck Credit: You can apply the $100 Global Entry or $85 TSA PreCheck application fee towards your account each four years.
- Trip Delay and Cancellation Insurance: You’ll be protected against trip delays, cancellations, and lost luggage.
- Baggage Delay Reimbursement: You can receive reimbursement for checked baggage delays of six hours or more.
The value of these perks depends on how often you travel and what type of travel you do. If you frequently fly and value airport lounge access, the Chase Sapphire Preferred® Card can provide significant value.
Travel Protections
The Chase Sapphire Preferred® Card also offers a range of travel protections, including:
- Travel Accident Insurance: You’ll be covered for up to $500,000 in case of an accident while traveling.
- Emergency Medical and Dental: You’ll receive coverage for medical and dental emergencies while traveling abroad.
- Trip Cancellation and Interruption Insurance: You’ll be reimbursed for non-refundable expenses if your trip is canceled or interrupted due to a covered reason.
- Auto Rental Collision Damage Waiver: You’ll be covered for damage to rental cars in the United States and abroad.
The value of these protections depends on your individual travel habits and risk tolerance. If you’re a frequent traveler or plan on renting a car on your next trip, the Chase Sapphire Preferred® Card can provide peace of mind.
Other Benefits
In addition to the rewards, travel perks, and protections, the Chase Sapphire Preferred® Card also offers a number of other benefits, including:
- No Foreign Transaction Fees: You won’t be charged any additional fees for using your card abroad.
- Purchase Protection: Your purchases are protected against theft or damage for 120 days.
- Extended Warranty: Eligible purchases are covered for an additional year beyond the manufacturer’s warranty.
- Contactless Payments: You can use your card for contactless payments at participating merchants.
Calculating the Value
To determine if the Chase Sapphire Preferred® Card is worth the annual fee, you need to calculate the potential value you can get from it. This involves considering the following factors:
- Rewards Points: Estimate the number of points you’ll earn based on your spending habits.
- Travel Perks: Determine the value of the airport lounge access, Global Entry/TSA PreCheck credit, and other travel benefits.
- Travel Protections: Assess the value of the travel accident insurance, emergency medical coverage, and trip cancellation insurance.
- Other Benefits: Factor in the value of the no foreign transaction fees, purchase protection, extended warranty, and contactless payments.
Is Chase Sapphire Preferred Worth the Annual Fee?
Based on the factors discussed above, the Chase Sapphire Preferred® Card can be worth the annual fee for the following individuals:
- Frequent Travelers: If you travel frequently and value airport lounge access, the card’s travel benefits can offset the annual fee.
- Travel Rewards Enthusiasts: If you’re looking for a card that earns generous rewards points on travel and dining, the Chase Sapphire Preferred® Card can be a valuable addition to your wallet.
- Risk-Averse Travelers: If you want peace of mind while traveling, the card’s travel protections can provide valuable coverage.
Alternatives to Chase Sapphire Preferred
If you’re not convinced that the Chase Sapphire Preferred® Card is right for you, there are a number of other travel rewards cards that you may want to consider:
- Chase Freedom Unlimited: This card offers 1.5% cash back on all purchases, with no annual fee.
- Capital One Venture Rewards Credit Card: This card offers 2x miles on all purchases, with a $95 annual fee.
- American Express® Gold Card: This card offers 4x points on dining and groceries, with a $250 annual fee.
Key Points: Is Chase Sapphire Preferred Worth the Annual Fee?
The Chase Sapphire Preferred® Card can be a valuable tool for frequent travelers and travel rewards enthusiasts. However, the annual fee of $95 makes it important to carefully consider whether the card is right for you. By calculating the potential value you can get from the card, you can make an informed decision about whether the annual fee is worth paying.
Frequently Asked Questions
Q: How do I redeem my Chase Sapphire Preferred® rewards points?
A: You can redeem your points for travel, gift cards, cash back, and other rewards through the Chase Ultimate Rewards® portal.
Q: What is the Global Entry/TSA PreCheck credit?
A: You can use the $100 Global Entry or $85 TSA PreCheck application fee towards your account each four years.
Q: How do I use my card for contactless payments?
A: Hold your card near the contactless payment terminal at participating merchants.
