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. An argument could be made for it being the best travel card, period.
And right now is the perfect time to grab it: Chase is currently offering a 100,000-point bonus after spending $5,000 in the first three months.
But any travel credit card worth its salt will most likely come at a cost, and it's no different with the Sapphire Preferred. The word “fees” might instantly scare some people off, but turning a blind eye to the Sapphire Preferred (or any other travel card) solely because of its $95 annual fee is a mistake.
From an annual $50 hotel credit to a minimum of $1,250 in travel value from the current 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 in the long run. 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 getting outsized value from the *chase sapphire preferred*, it all starts with earning a massive sign-up bonus. And right now, it's more valuable than ever: For a limited time, you can earn 100,000 points after spending $5,000 in the first three months.
That's worth a minimum of $1,250 toward flights, hotels, and other travel expenses booked through Chase TravelSM – and instantly takes the sting out of paying an annual fee in year one.
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.
Last year, we 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 got even better for those using Chase Ultimate Rewards points to book. As you can see, that same flight is bookable for $117 or only 9,356 Ultimate Rewards points through Chase Travel, 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 eleven 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 to thousands of dollars in business class, for just the price of taxes and fees.
Take this Air France business class flight to Paris (CDG). You can turn 60,000 Chase points into 60,000 Flying Blue miles to book this flight (plus about $200 in taxes and fees) by transferring your points.
This exact flight costs over $4,100! Take your pick…
That's just one example. Here are a few of our other favorite ways to redeem Ultimate Rewards points:
- 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 was long one of our favorite ways to save SkyMiles and book flights on Delta. Though it's taken a hit after major devaluations – including gutting 50,000-point Delta One redemptions to Europe – there are still some amazing ways to redeem Flying Club points. Now, you can even book Virgin Atlantic business class from the U.S. to London for as low as 29,000 points and just $255 in taxes and fees. There are other excellent partner bookings like Air New Zealand business class to Auckland (AKL) and ANA business or first class to Japan.
- British Airways is now one of the best ways to book the world's best business class seats, Qatar Qsuites, starting at just 70,000 Avios each way. But you can also transfer your British Airways miles with all the other airlines that use Avios, including Qatar Airways, Finnair, Iberia, and Aer Lingus. That means you can send Chase points to Finnair via British Airways and book some dirt-cheap American Airlines flights to Hawaii or the Caribbean; fly Finnair business class to northern Europe; or even book Cathay Pacific business class to Hong Kong for less.
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 book and pay for a hotel stay through Chase Travel℠ with your Sapphire Preferred 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 April, you would receive a new $50 hotel credit in April 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 work.
- 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 out-of-pocket a mere $45 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
DoorDash Benefits
After Chase's longstanding partnership with Instacart expired at the end of July, the bank doubled-down (and expanded) its relationship with DoorDash. With this new agreement, Sapphire Preferred cardholders get a complimentary DashPass, as well as a monthly coupon of up to $10 off on grocery, convenience, and other non-restaurant orders.
With DashPass, you'll get free delivery and discounted fees on all DoorDash orders. Ordinarily, the service costs $9.99 per month or $96 per year.
If you'd otherwise be paying $96 per year for DashPass, this benefit alone is enough to cover the cost of carrying the Sapphire Preferred Card. Add in the $10 off monthly coupon for non-restaurant orders, and it's easy to come out ahead on the Sapphire Preferred's annual fee with this benefit alone!
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.
Bonus Points on Chase Travel Purchases
Last year, Chase targeted some customers with the opportunity to earn up to 20,000 bonus points when booking a trip through Chase Travel℠. All you had to do was spend $500 on a flight, rental car, or other travel booking through Chase and get a bonus of 10,000 – or even 20,000 – points. Considering you can turn around and use those for at least $125 for more travel, that's a pretty sweet deal.
It's important to note that not everyone was targeted for these offers – but many Chase cardholders received emails letting them know they were eligible. And while there's no telling if new cardmembers will be targeted – or if we'll see similar offers in the future – we've seen Chase roll out similar promotions in the past that help justify paying the Sapphire Preferred's annual fee.
Bottom Line
The *chase sapphire preferred* limited-time 100,000 point bonus makes it a no-brainer in year one for nearly every traveler. But after that first year, the card's annual credits and benefits could make it a keeper for the long run.
Simply put: Don't let a credit card's annual fee scare you off before digging into all the perks that come with it. When all things are considered, the Chase Sapphire Preferred is well worth its $95 annual fee … and deserves a place in your wallet.
What about the travel insurance benefits included, that seems like good benefit?