Chase Sapphire Preferred Card – Excellent Beginner Traveler Credit Card

Chase Sapphire Preferred Card is a great card for travelers – even if you only travel for leisure and not for business. Its $95 annual fee is easy on the wallet compared to the Chase Sapphire Reserve. It makes a great beginner travel credit card.

Chase Sapphire Preferred Card

Sign up bonus

Chase Sapphire Preferred card gives you 80,000 points after $4,000 in spend within the first three months.  You will also get up to $50 in statement credits towards grocery store purchases in the first year. TPG values Chase Ultimate Rewards at 2 cents per point. So you are getting $1,650 in value (2 cents x 80,000 points PLUS $50 grocery store credit).

Chase Sapphire Preferred Rewards

$95 annual fee
No foreign transaction fees
2x points on dining and travel
1x points on all other purchases
25% additional value when you redeem through the Chase travel portal
1:1 transfer to many airline and hotel loyalty programs

What categories count as travel?

Chase is very generous in its definition of travel. Travel includes

  • Airlines
  • Hotels, 
  • Airbnb,
  • Car rentals
  • Cruises
  • Trains
  • Taxis
  • Metros
  • Ferries
  • Tolls
  • Parking 

Other benefits

Primary rental car insurance

Most credit cards offer secondary rental car insurance. This means that your primary car insurance will pay for damages before Chase steps in. But Chase Sapphire Preferred offers primary rental car insurance coverage. You can submit claims directly to Chase and not have to deal with your primary auto insurance company.

Trip insurance delayed and lost luggage

The card offers trip delay, trip cancellation, and baggage delay insurance, and lost baggage reimbursement.

  • $500 per ticket in trip delay insurance
  • $10,000 in trip cancellation insurance.
  • $100 per day in baggage delay insurance if your bags are delayed by more than 6 hours(max 5 days)
  • $3,000 per person in lost luggage reimbursement

Purchase protection

The card offers purchase protection up to $500 per claim and $50,000 per account. Purchase protection can come in handy if your recently purchased item is damaged or stolen.

Extended warranty

Chase Sapphire Reserve provides an additional year of warranty coverage if the manufacturer’s warranty is three years or less.

Door Dash

Cardholders get one year of complementary Doordash membership. Doordash membership gives you free delivery and reduced service fees on eligible purchases.

Peleton Subscription

You can get up to $60 back on all Peleton Digital Or All-Access membership until December 31, 2021.

Redemption

Chase Ultimate Rewards travel portal

Redeem for flight tickets, hotels, or car rentals at a fixed rate of 1.25 cents through the Chase travel portal. Booking through the Chase travel portal is similar to booking through Travelocity or Expedia.

Transfer to airline partners

Chase has 10 airline partners. You can transfer your points 1:1 to any of the following airline partners.

  • Aer Lingus
  • British Airways
  • Emirates
  • Flying Blue (Air France/KLM)
  • Iberia
  • JetBlue
  • Singapore Airlines
  • Southwest Instantaneous
  • United Instantaneous
  • Virgin Atlantic

Transfer to hotel partners

Chase has 3 hotel partners. You can transfer Chase Ultimate Reward points to any of the following hotel partners on a 1:1 basis.

  • Marriott
  • IHG
  • Hyatt

Pay yourself back

You get the best bang for your buck if use your points for travel. But Chase does have a “Pay Yourself Back” feature that allows you to redeem your points at 1 cent per point (temporarily 1.25 cents until September 2021). Note that if you use it for travel through the Chase travel portal, you can 1.25 cents (25% more). If you transfer the points to hotel or airline partners, you can get up to 2 cents per point.

Decision

The Chase Sapphire Preferred card is nicely sandwiched between the no-annual-fee Chase Freedom, Freedom Flex, and Freedom Unlimited cards, and the Chase Sapphire Reserve, which has an annual fee of $550. Not surprisingly, it offers more rewards than the no-annual-fee cards but fewer rewards compared to the Sapphire Reserve. If you are doing some travel, it’s a great card to have. The additional rewards easily pay for the $95 annual fee.

Chase 24/5 rule

Note that as with any Chase credit card, the 24/5  rule applies here. If you opened 5 or more Chase credit cards in the last 24 months, Chase will decline your application.

Leave a Comment

Your email address will not be published. Required fields are marked *