As a young professional, you’re likely focused on building your career and your financial future.
A great credit card can be a tool to help you get there. The Chase Sapphire credit card, specifically the Preferred version, is often talked about for its rewards and benefits.
It might seem like a big decision, but let’s break down what this card offers and how you can make it work for you.
Key Takeaways
- The Chase Sapphire Preferred card offers a solid welcome bonus and earns points on travel and dining.
- You can get good value from the card’s $95 annual fee through perks like a hotel credit and complimentary DashPass.
- Chase Ultimate Rewards points are flexible and can be redeemed through the Chase Travel portal or transferred to partners.
- Consider pairing the Sapphire Preferred with other Chase cards for a ‘trifecta’ strategy to maximize earnings.
- This Chase Sapphire credit card can be a good long-term addition to your wallet if its benefits align with your spending habits and travel goals.
Understanding the Chase Sapphire Preferred Card
Key Features and Benefits
The Chase Sapphire Preferred® Card is a popular choice for young professionals looking to get more from their everyday spending. It offers a solid rewards program and several perks that can add up quickly. You’ll earn bonus points on travel booked through Chase, dining, select streaming services, and online grocery purchases. Other notable benefits include 5x points on Lyft rides through September 30, 2027, and 2x points on all other general travel purchases. It’s designed to reward you for the kinds of expenses many people incur regularly.
Annual Fee and Value Proposition
This card comes with a $95 annual fee. While that might seem like a drawback, the benefits often outweigh the cost, especially for those who travel or dine out frequently. The card provides a $50 statement credit each account anniversary year for hotel stays booked through Chase Travel℠. This credit alone can significantly offset the annual fee. When you combine this with the bonus points earned on spending and other perks, the card can offer substantial value throughout the year.
Credit Score Requirements
To be approved for the Chase Sapphire Preferred Card, you generally need a good to excellent credit score. This typically means a score of 670 or higher. Having a strong credit history demonstrates to lenders that you manage credit responsibly, which increases your chances of approval. If your credit score is currently below this range, focusing on improving it before applying is a good strategy.
Here’s a general guideline for credit scores:
| Credit Score Range | Classification |
|---|---|
| 750-850 | Excellent |
| 670-749 | Good |
| 580-669 | Fair |
| Below 580 | Poor |
It’s always a good idea to check your credit report and score before applying for any new credit card to understand where you stand.
Maximizing Your Welcome Bonus
Getting a new credit card often comes with a welcome bonus, and the Chase Sapphire Preferred® Card is no exception. This bonus can be a significant boost to your rewards balance, but you need to be strategic to get the most out of it. Let’s break down how you can earn and make the most of this initial offer.
Earning the Welcome Offer
Chase typically offers a substantial welcome bonus for new cardholders. For example, you might see an offer like “Earn 60,000 bonus points after you spend $4,000 on purchases in the first 3 months from account opening.” Meeting this spending requirement is key to unlocking the bonus. It’s important to understand the exact terms of your specific offer, including the spending threshold and the timeframe you have to meet it. Don’t try to spend more than you normally would just to hit the target; instead, focus on putting your regular, planned expenses on the card.
Strategic Spending for the Bonus
To meet the spending requirement without overspending, plan your purchases. Think about any upcoming expenses you can put on the card, such as:
- Bills: Utilities, phone bills, or even rent if your landlord accepts credit card payments (check for any fees).
- Subscriptions: Streaming services, gym memberships, or software subscriptions.
- Larger Purchases: If you have a planned purchase like new furniture or electronics, consider making it within the bonus period.
It’s also helpful to track your spending as you go. Many banking apps allow you to monitor your progress towards the welcome bonus requirement, so you know exactly how much more you need to spend.
Value of the Welcome Points
Once you’ve earned your welcome bonus, the points you receive can be quite valuable. For instance, if you earn 60,000 points, their value can vary depending on how you redeem them.
- Booking through Chase Travel: You can get 25% more value, making those 60,000 points worth $750 towards travel.
- Transferring to Partners: By transferring your points to airline or hotel partners, you can often achieve an even higher value, sometimes exceeding 1.5 cents per point, especially for premium cabin flights or luxury hotel stays.
Understanding the potential value of your welcome bonus points before you even start spending can help motivate you to meet the requirements and plan your future redemptions effectively.
Earning Rewards with Your Chase Sapphire Card
Travel Through Chase
When you book travel directly through the Chase Travel portal, you’ll earn points at an accelerated rate. For instance, the Chase Sapphire Preferred® Card offers 5 points per dollar on flights and 2 points per dollar on other travel purchases made through the portal. This is a great way to rack up points quickly, especially if you have upcoming trips planned. Remember, your points are worth 25% more when redeemed for travel this way, so 10,000 points become 12,500 points in value.
Dining and Streaming Services
Your Chase Sapphire card also rewards you for everyday spending. You’ll earn 3 points per dollar on dining, which covers restaurants, cafes, and even some takeout services. Additionally, select streaming services, like Netflix and Spotify, also fall into this bonus category, earning you 3 points per dollar. This makes your monthly subscriptions and dining out more rewarding.
Everyday Purchases
For all other purchases that don’t fall into the bonus categories, you’ll earn 1 point per dollar spent. While this rate is standard, it’s important to use your card strategically. Consider using other cards for purchases that might earn a higher rate if they aren’t covered by your Sapphire card’s bonus categories. However, for general spending, the 1 point per dollar adds up over time, especially when you consider the potential for point transfers to travel partners later on.
It’s worth noting that Chase often has special offers through the “Shop through Chase” portal. By accessing online retailers through this portal, you can earn additional bonus points on your purchases. Keep an eye out for these deals, as they can significantly boost your rewards balance without changing your spending habits.
Leveraging Cardholder Perks
Annual Hotel Statement Credit
Your Chase Sapphire Preferred card comes with a nice perk: a statement credit for hotel stays booked through Chase Ultimate Rewards. This credit can help offset the annual fee, making the card even more appealing. You get $50 back each anniversary year, applied automatically as a statement credit when you book a hotel stay through the Chase Travel portal. It’s a straightforward way to get some money back on travel you might already be planning.
Complimentary DashPass Membership
If you use food delivery services, you’ll appreciate the complimentary DashPass membership that comes with your card. This membership, which you need to activate by December 31, 2027, offers $0 delivery fees and reduced service fees on eligible orders from thousands of restaurants on DoorDash. It’s a pretty good deal, especially if you order in frequently. You also earn 5x points on DoorDash orders when you activate DashPass and pay with your Sapphire Preferred card.
Travel Protections and Insurance
This is where the Sapphire Preferred really shines for young professionals on the go. You get some solid travel protections that can save you a lot of hassle and money.
- Trip Cancellation/Interruption Insurance: If your trip is canceled or cut short for a covered reason, you could get reimbursed for non-refundable travel expenses like flights and hotels. This is a big one if you’re worried about unexpected events.
- Auto Rental Collision Damage Waiver: When you rent a car and pay with your card, you can decline the rental company’s collision damage waiver. Your card provides coverage for damage due to collision or theft. Just remember, this is secondary coverage in your home country but primary coverage when you rent abroad.
- Baggage Delay Insurance: If your checked baggage is delayed by more than six hours, you can be reimbursed for essential purchases like toiletries and clothing. It’s a lifesaver if your luggage goes missing for a bit.
These protections aren’t just abstract benefits; they’re practical safeguards that can make a real difference when you’re traveling. Knowing you have this coverage can give you peace of mind, especially when you’re juggling work and travel plans.
Chase Offers
Beyond the main travel perks, keep an eye on your Chase account for
Redeeming Chase Ultimate Rewards Points
So, you’ve been racking up those Chase Ultimate Rewards points, which is fantastic! Now comes the fun part: actually using them. You’ve got a few different paths you can take, and understanding each one will help you get the most bang for your buck. It’s not just about spending them; it’s about spending them smartly.
Booking Through Chase Travel
One of the most straightforward ways to use your points is by booking travel directly through the Chase Travel portal. Think flights, hotels, rental cars, and even vacation rentals. When you use your Chase Sapphire Preferred card for these bookings, your points get a nice little boost. Every 1,000 points you redeem for travel through the portal are worth $12.50, which is a 25% increase over their base value. So, if you have 50,000 points, that’s $625 towards your next trip.
Here’s a quick look at how the portal value works:
| Card Type | Point Value for Travel Bookings | 1,000 Points Worth |
|---|---|---|
| Chase Sapphire Preferred | 1.25 cents per point | $12.50 |
| Chase Sapphire Reserve | 1.50 cents per point | $15.00 |
It’s a simple way to get a solid return, especially if you find a good deal on flights or hotels within the portal. You can even use a mix of points and cash if you don’t have enough points to cover the entire cost.
Transferring to Travel Partners
This is where things can get really interesting, and potentially, where you can get the highest value for your points. Chase has a list of airline and hotel partners, like United, Southwest, Hyatt, and Marriott. You can transfer your Ultimate Rewards points directly to these partners’ loyalty programs, usually at a 1:1 ratio. This means 1,000 Chase points become 1,000 miles or points with the partner program.
Why is this so good? Because airline and hotel loyalty programs often have redemption options that are worth much more than 1.25 cents per point, especially for premium cabin flights or high-end hotel stays. For example, a business class flight that costs $5,000 might be bookable for 100,000 points plus some taxes and fees. If you transferred those points from Chase, you’d be getting 5 cents per point in value – a huge difference!
Here are some popular transfer partners:
- Airlines: United MileagePlus, Southwest Rapid Rewards, British Airways Avios, JetBlue TrueBlue, Singapore Airlines KrisFlyer.
- Hotels: World of Hyatt, Marriott Bonvoy, IHG Rewards Club.
It takes a little more research to find these sweet spots, but the payoff can be significant.
Maximizing Point Value
Getting the most out of your points means being strategic. While redeeming for cash back or statement credits is always an option (and usually at a 1 cent per point value), it’s generally not the best use if you’re aiming for maximum value. Redeeming for purchases through Amazon or PayPal, for instance, typically only gives you 0.8 cents per point, which is a poor return.
The key to maximizing your points is to align your redemption with your spending habits and travel goals. If you travel frequently, transferring to airline or hotel partners often yields the best results. If you prefer simplicity and a guaranteed return, booking through the Chase Travel portal is a solid choice. Avoid redemptions that offer less than 1 cent per point whenever possible.
Consider these tips for getting more value:
- Look for transfer bonuses: Chase sometimes offers bonuses when you transfer points to specific partners (e.g., an extra 10% or 20% bonus miles). Keep an eye out for these promotions.
- Research award charts: Before transferring, check the award charts for your chosen airline or hotel partner. See how many points or miles a specific redemption would cost and compare it to the cash price.
- Be flexible with travel dates: If you’re transferring to airline partners, being flexible with your travel dates can often help you find award availability that offers better value.
Ultimately, the best way to redeem your points is the one that works best for your lifestyle and travel plans.
Integrating Chase Sapphire Card into Your Wallet
The Chase Trifecta Strategy
Combining credit cards can really boost how many rewards you earn. A common strategy, often called the “Chase Trifecta,” involves pairing your Chase Sapphire Preferred card with other Chase cards. Think of the Chase Freedom Flex℠ and Chase Freedom Unlimited® as your partners. You can use the Freedom Unlimited for most of your regular spending, then move those rewards over to your Sapphire Preferred. This lets you take advantage of any redemption bonuses the Sapphire card offers. The Freedom Flex card is great for earning extra points in categories that change every three months.
Refer-a-Friend Bonuses
Chase likes it when you spread the word. They offer bonuses, usually in the form of Ultimate Rewards points, when your friends sign up for a Chase card using your referral link or code. These bonuses can add up, giving you more points to use for travel or other redemptions. It’s a simple way to get more value from your card.
Long-Term Value and Lifestyle Fit
Think about how this card fits into your life over time. The $95 annual fee is offset by benefits like the $50 hotel credit and the anniversary points bonus. Plus, the travel protections and insurance can save you a lot of hassle and money if something goes wrong. The Chase Sapphire Preferred is more than just a card; it’s a tool that can grow with you as your spending habits and travel goals evolve. If you travel even a few times a year, or enjoy dining out and using streaming services, the rewards and perks can easily make the annual fee worthwhile. It’s about making smart choices that align with your financial habits and aspirations.
Wrapping Up Your Chase Sapphire Preferred Journey
So, you’ve learned about the Chase Sapphire Preferred card, its rewards, and how it can fit into your life as a young professional. It’s a solid choice for many, offering good value for its annual fee. Think about your spending habits and travel goals. If this card aligns with what you’re looking for, it could be a great addition to your wallet. Remember to use it wisely, pay your balance on time, and enjoy the benefits that come with it. Happy spending, and maybe even happier traveling!
Frequently Asked Questions
What is the Chase Sapphire Preferred® Card?
The Chase Sapphire Preferred® Card is a credit card designed for people who travel and dine out often. It offers a lot of rewards points for spending on travel and food, and it comes with extra perks like travel insurance and a free food delivery membership.
How do I earn rewards with this card?
You earn rewards by using the card for purchases. You get more points for booking travel through Chase, dining out, and using select streaming services and online grocery stores. You also earn points on all other purchases, just at a lower rate.
What is the welcome bonus, and how do I get it?
The card usually offers a large number of bonus points when you first get it. To earn this bonus, you typically need to spend a certain amount of money within the first few months of opening the account. Check the current offer for the exact details.
How can I use my Chase Ultimate Rewards points?
You have many options! You can use your points to book flights and hotels through Chase’s website, which sometimes gives you extra value. You can also transfer your points to different airline and hotel loyalty programs, or use them for cash back or gift cards.
What are some of the extra benefits of having this card?
Besides earning points, you can get a statement credit each year for hotel stays booked through Chase. You also get a free DashPass membership for food delivery, and important travel protections like insurance for rental cars and trip cancellations.
Is this card a good choice for young professionals?
Yes, it can be a great choice. The rewards on dining and travel can help you save money on everyday expenses and future trips. The perks like DashPass and travel insurance can also fit well with a busy lifestyle.
Marc Smith is the founder of the Budget Geridibiase blog, where he uses his decade-plus experience as a financial consultant to simplify the world of finance, credit cards, and insurance. His mission is to translate complex topics into practical, accessible advice, empowering readers to make financial decisions with confidence and build a secure economic future.