There's a reason we talk about the *chase sapphire preferred* all the time: It's the best starter travel credit card to get into points and miles. And beyond being an entry point into the world of booking free or cheap flights using your credit card rewards, an argument could be made for it being the best travel card, period.
Any travel credit card worth its salt when it comes to valuable travel perks and credits will likely also cost an annual fee to hold, and it's no different with the Sapphire Preferred. The word “fees” might scare people off, and in fact, we've heard from many travelers who hesitate to open the card because of its $95 annual fee.
But solely considering the $95 annual fee is missing the point of having a travel card like the Sapphire Preferred in the first place. From an annual $50 hotel credit to the value of the 75,000 points you can earn from its current, massive welcome bonus, there are plenty of ways to recoup the cost – and even come out ahead – with the Sapphire Preferred.
It's really a question of whether or not paying the annual fee to hold the Sapphire Preferred brings value to you as a traveler and whether the math makes sense. Let's dig into whether the Sapphire Preferred Card is worth its annual fee.
Read our full review of the Chase Sapphire Preferred Card!
Earn a Massive Welcome Bonus Offer
When it comes to the prime way to get value from opening the *chase sapphire preferred*, the number one way to do so is through earning the massive sign-up bonus that the card comes with: bonus_miles_full
Those 75,000 Chase points are worth at least $900 in travel – potentially more. With the Sapphire Preferred card, each point is worth 1.25 cents when booking flights, hotels, rental cars, cruises, and more through Chase TravelSM.
Using Chase Travel℠ is simple. Generally speaking, the prices you find for airfare through Chase will match what you will find on Google Flights – our favorite flight booking search engine. And these points can take you quite far: The cheaper the price of your flight, the fewer Chase points you need to use to book.
Since most airlines are available through Chase Travel℠, you don't need to worry about deals popping up on one specific airline if you hold the Sapphire Preferred Card.
We recently sent a deal to our Thrifty Traveler Premium members for nonstop round-trip flights from New York City (JFK) to Miami (MIA) for just $117.
That's a heck of a deal. But it can get even better if you use your Chase Ultimate Rewards points to book this flight. As you can see, that same flight is bookable for $117 or only 9,356 Ultimate Rewards points since your points are worth 1.25 cents each ($117/0.0125 = 9,356 points).
After meeting the card's minimum spending requirement, you could book eight round-trip tickets with just one sign-up bonus! Better yet, you'll still earn airline miles when you book through the Chase portal – in this case, Delta SkyMiles.
But it gets better. You could also increase the value of your Chase points by transferring them to an airline or hotel partner to book flights or hotel stays. Transferring points to airlines could help you book flights that would normally cost several hundred dollars in economy roundtrip to thousands of dollars in business class one way, for just the price of taxes and fees. The same goes for booking luxury hotel stays through one of Chase's hotel partners.
Take this Air France business class flight to Paris (CDG). You can turn 50,000 Chase points into 50,000 Flying Blue miles to book this flight (plus about $200 in taxes and fees) by transferring your points.
This exact flight costs over $4,500!
That's just one example. Here are a few of our other favorite ways to redeem Ultimate Rewards points:
- Aeroplan is Chase's newest addition, and it's arguably the strongest one. You can use Air Canada Aeroplan points to book cheap United flights across the country, get from the West Coast to Hawaii and back for as low as 25,000 miles, book business class to Europe for as low as 60,000 points each way, or even book partners like Singapore business class or Emirates, too.
- Hyatt is far and away one of the best Chase transfer partners, period. That's largely because the hotel chain's low award rates make it easy to get an outsized value on amazing hotels worldwide. Check one of our favorite ways to use Hyatt points for all-inclusive resorts!
- Virgin Atlantic is one of our favorite ways to save SkyMiles and book flights on Delta. Though it's taken a hit after a major devaluation, their partnership allows you to book Delta One business class (including Delta One Suites) to Europe for just 50,000 miles each way – even when Delta often wants $5,000 or 300,000 SkyMiles or more for a trip to Europe in business class. Read our guide on how to book Delta One Suites for cheap by transferring Chase points!
Read more: Chase Ultimate Rewards: A Guide to Earning & Burning in 2024
$50 Annual Hotel Credit
The Chase Sapphire Preferred card also comes with a $50 credit each year when booking a hotel through Chase Travel℠.
It's easy to use, too: All you need to do is use your Sapphire Preferred Card to book and pay for a hotel stay through Chase Travel℠ and you'll receive an automatic credit back on your next statement up to $50 per year.
This credit follows your account member year instead of the calendar year. So for example, if you opened your Chase Sapphire Preferred Card in September, you would receive a new $50 hotel credit in September each year when your account renews.
Here's what you need to know:
- You must book your hotel through Chase Travel℠ to get this $50 credit. Booking a stay with a hotel directly won't trigger the credit.
- Unlike other credit cards offering benefits like this, there is no minimum spend or length of stay requirement.
- No registration is required! This statement credit kicks in automatically
- You'll get this credit in year one. So if you're thinking of opening a Chase Sapphire Preferred card soon to earn the new, bigger offer, you could use this credit right away to save on a hotel stay.
So long as you use up the full $50 hotel credit, you'll basically be coughing up a mere $45 a year to hold the Chase Sapphire Preferred each year – and that's without taking advantage of any of the card's other benefits.
Read more: Don’t Forget to Use This Benefit on Your Chase Sapphire Preferred!
Other Ways to Save
Chase Offers
Chase Offers are deals on dining, shopping, entertainment, and other purchases exclusive to Chase cardholders. You can add these digital coupons to your account to save at select stores and travel companies. These offers are targeted, so not every cardholder will see every offer.
Scroll through your available offers and add any you want to your card. Once you make a qualifying purchase with that merchant, you'll automatically get cash back in the form of a statement credit. Generally with these offers, you can expect to get about 10% back up to a specific dollar amount.
While not quite as lucrative as say Amex Offers, the money you can save through Chase Offers can add up fast – and help make that annual fee easier to stomach.
Within the last year, I've saved almost $50 on purchases through Chase offers. That, combined with using the $50 hotel credit, makes my Sapphire Preferred Card practically free to hold.
Here's an example of the statement credit I got back within a week after purchasing a few skincare products online.
It's an easy way to save on purchases I planned to make anyway and it makes it easier to justify the annual fee on the Sapphire Preferred card.
Instacart
Chase Sapphire Preferred cardholders get a free Instacart+ membership for grocery delivery orders – and up to $15 of monthly credits to use on the platform through July 2024.
In addition to getting free delivery on orders over $35 through your free trial, you'll get $15 back each quarter after making your Instacart purchase.
Already have an Instacart+ membership? You can still enroll at the promotional link, enter your Sapphire account number, and you'll be eligible to take advantage.
Simply enroll for Instacart+ at the promotional link through July 31, 2024 with your eligible Chase card. Act fast as this promotion is ending soon!
HBO
Some Chase customers are also being targeted for an HBO offer, which gives Sapphire Preferred customers $25 off HBO Max purchases. You'll have to activate the offer by June 6 and spend at least $99 by Sep. 30 to get the $25 statement credit.
The easiest way to trigger the statement credit is by subscribing to the cheapest annual HBO Max plan, priced at $99.
If you're already an HBO customer or were already planning to sign up, it's a great way to save on an otherwise pricy subscription.
Our Analysis
When you consider the value of a big welcome bonus on the Chase Sapphire Preferred and all the ways you can save on hotels and other purchases with the card, you can come out well ahead on the $95 annual fee, especially true in your first year of card membership.
Even after you've used up that initial points bonus for opening and spending on the card, you'll still get a $50 hotel credit each year, bringing the annual cost of the Sapphire Preferred down to just $45 – or less if you take advantage of its other money-saving perks. And of course, for any spending you put on the card, you'll continue to earn Chase points you can use to cover, flights, hotels, and more.
Plus, other benefits like travel and rental car insurance, trip delay, and cancellation protection can easily make the Sapphire Preferred worth a place in your wallet for the long run.
Bottom Line
Don't let the $95 or any annual fee scare you before digging into all the perks and credits that come with any given travel credit card. The Chase Sapphire Preferred is well worth its annual fee and a place in your wallet.