Chase Sapphire Preferred Review: A Clear Travel Rewards Credit Card Leader

The Chase Sapphire Preferred® Card has a legion of fans for good reason. The card packs in features common with the best travel credit cards, such as a large sign-up bonus, premium rewards in several diverse spending categories, and perhaps most importantly, one of the top travel rewards programs we've come across. Its annual fee is justifiable for most cardholders.

Check out our in-depth Chase Sapphire Preferred® Card review to see if this card is a fit for your needs.

This credit card is a good fit for: Travelers who want to earn the most versatile travel points we know of and a great introductory bonus offer.

Features and benefits

The Chase Sapphire Preferred® Card is an affordable way to save on big trips. Since it has a $95 annual fee, it's not made for luxury benefits, like airport lounge access and travel credits. What it does have are ample bonus opportunities and flexible points you can use to cover the cost of expensive flights and hotels.

Spectacular travel rewards program that can take you anywhere

When you want to book a trip using your travel points, it's nice to have options. This card is part of the Chase Ultimate Rewards program, which is a huge benefit. Through this program, you can transfer your points to over a dozen airline and hotel partners.

This gives you the flexibility to book all kinds of trips. Here are a few examples:

• Want to practice your Spanish (and eat a whole lot of tapas) in Spain? You could transfer your Chase points to Iberia to book your airfare.
• Looking to save on a costly hotel stay? If there's a Hyatt where you're going, transfer your Chase points there -- Hyatt hotels are a steal when you book with points.
• Hoping to visit Paris in the spring? Send those Chase points over to Air France and KLM's Flying Blue program, and you'll be able to book that ticket in miles instead of cash.

These are all ways I've used my own Chase points, and I've saved over $5,000 multiple times on flights and hotel stays. Not only does being able to transfer your points give you flexibility, you can get incredible value.

The Ultimate Rewards program gives you other options, too. Another popular choice is booking travel through Chase's portal and paying in points. You get $0.0125 per point, so 10,000 points are worth $125 this way. But to get the most from Chase points, transfers are the best option.

RELATED: The Ascent's Travel Credit Cards Hub

Big bonus opportunities help you earn points more quickly

If you use this card regularly, you shouldn't have any trouble earning points. For starters, the welcome offer is 60,000 bonus points for spending $4,000 in the first 3 months.

It's only fair to mention that this welcome offer has been higher at times. Chase occasionally offers 80,000 bonus points, and on rare occasions, even 100,000. You might want to wait and see if you're not in a hurry. But if you are, 60,000 bonus points are still impressive. Through the Chase travel portal, 60,000 bonus points are worth $750.

You'll also be earning bonus points on everyday spending and travel purchases.:

• Whether you go out to eat or place a delivery order, this card earns 3X points per $1 on dining.
• You earn the same rate of 3X points per $1 for online grocery orders and select streaming services.
• This card earns 2X points to 5X points per $1 on travel purchases, depending on the type of travel purchase.

Partner benefits that could save you some extra cash

Chase says that the Chase Sapphire Preferred® Card offers over $200 in partner value. It's technically true, although I wouldn't get your hopes up about saving that much. Here's a quick look at where all this value is coming from:

• Complimentary DoorDash DashPass subscription for a minimum of one year when you activate by Dec. 31, 2024 ($96/year value)
• Complimentary six-month Instacart+ membership when you activate by July 31, 2024 (auto-renews, $60 value)
• Quarterly $15 Instacart credit for Sapphire Preferred Instacart+ members through July 2024
• 5X points per $1 on Peloton equipment and accessory purchases over $150 through March 31, 2025 ($75 value when you purchase a Peloton bike and redeem for cash)

If you like getting food delivered, you'll probably enjoy having this card. The DoorDash and Instacart benefits are both easy to use, plus you'll earn bonus points on purchases with those delivery apps. And if you also happen to be buying a Peloton bike, even better.

Travel and purchase coverages in case anything goes wrong

There's nothing like renting a car and hearing that you personally could be on the hook for some absurd sum of money if anything happens to it. If you pay the full rental cost with your Chase Sapphire Preferred® Card, and decline the add-on the rental company wants to sell you, you won't need to worry about that.

Since this card has an auto rental damage collision waiver, it provides complimentary coverage. It's also primary coverage, meaning you wouldn't even need to file a claim with your own insurance first (many travel cards have secondary coverage that only kicks in after your own insurance is exhausted).

That's one of many complimentary protections. Others include:

• Trip cancellation/interruption insurance
• Baggage delay insurance
• Trip delay reimbursement
• Travel and emergency assistance services
• Purchase protection
• Extended warranty protection

$50 annual hotel savings that could be tricky to use

This card offers up to $50 in statement credits per account year toward hotel stays purchased through Chase Ultimate Rewards. You could look at it like a $50 annual discount on hotels -- but there's a catch.

You need to book through Chase Ultimate Rewards, and you won't always find the best prices there. I've found that Chase's prices are often higher than they are if you book directly through the hotel. A stay may cost $1,000 through Chase or $900 through the hotel, in which case this benefit doesn't do you any good. Sometimes it works out, but it's hit or miss.

Drawbacks to know about

This Chase card won't be right for everyone. There's nothing wrong with it, but there are a few downsides compared to some of its competitors. If one of them is an issue for you, then you're better off with a different card.

The benefits are a lot to keep track of

With all that it offers, the Chase Sapphire Preferred® Card can be a handful. It gives you what seems like a million ways to use your points. Transfer them. Book travel with points in Chase's portal. Get cash back. Shop for Apple products. Those are just some of your options. Don't forget about the card's $50 hotel credit, or the partner benefits with DoorDash, Instacart, and Peloton, either.

Its list of features feels like one of those never-ending infomercials with add-on after add-on. It starts out strong, but you eventually wonder how many of these perks you're actually going to use.

These benefits could be valuable, if you know you'll use them and you don't mind keeping track of everything. Just keep in mind that there's a learning curve involved, both in making the most of this card's features and figuring out how to use your points.

It doesn't have many premium perks to upgrade your travel experience

This Chase card is great at helping you pay for your trips, particularly airfare and hotels. But it doesn't have the kind of luxury travel perks that improve your experience along the way.

You won't be getting into any airport lounges with this card. That's understandable for a $95 annual fee, but there are cards in this price range that at least offer a few lounge passes per year. You also won't get silver or gold status with your favorite hotel with this card. And it won't pay for your Global Entry/TSA PreCheck membership so you can get through airport security faster.

If you were hoping for some high roller perks, you'll need to look at other travel cards with higher annual fees. But if those don't matter to you, then the Chase Sapphire Preferred® Card will probably have everything you need for a reasonable annual fee.

The Chase Sapphire Preferred® Card's annual fee is worth it for many cardholders, given the rewards, sign-up bonus, and extra perks it offers. The sign-up bonus is already worth $750 in travel with Chase, so you can come out well ahead in value that first year.

Beyond just the first year, the card still retains its value for cardholders with modest credit budgets. You'd need to earn only 7,600 Ultimate Rewards points to balance out the annual fee. That's because, at a rate of $0.0125 per point for travel purchases, 7,600 points is worth $95 in travel.

With several earning categories with high rewards rates, this is an achievable goal for anyone who uses their credit card regularly.

However, there are situations in which you could find a better deal with another card. For example, if you spend only a few hundred dollars per month on your credit card, you'd be better off with a no annual fee travel credit card. Another good option would be a cash back card. If you have high spending and travel quite a bit, then you could benefit more from a travel card with a higher annual fee and more features.

READ MORE: Best Cash Back Credit Cards

Though it has a higher annual fee, the Chase Sapphire Reserve® is worth considering alongside this card. Importantly, the two credit cards offer big sign-up bonuses, premium rewards for travel and dining, and access to Chase's valuable Ultimate Rewards program. But there are some differences to consider when evaluating the Chase Sapphire Preferred® Card vs. Chase Sapphire Reserve® matchup.

When to pick the Chase Sapphire Preferred® Card: This card is best suited for everyday cardholders and occasional travelers. It's better for those who don't place much value in the premium travel perks offered with the Chase Sapphire Reserve®, such as reimbursement for Global Entry or TSA Pre✓® fees, and access to certain airport lounges.

When to pick the Chase Sapphire Reserve®: Frequent travelers could find more value in Chase Sapphire Reserve's premium perks, such as higher rewards for travel and dining and travel statement credits. If you travel every few months, the additional benefits of this card could justify the much higher annual fee.

Applicants will have the best shot of securing approval for the Chase Sapphire Preferred® Card with a FICO® Score of 670 or higher. Although your credit score is important, keep in mind that it's not the only factor. It is possible to be approved with a lower score and even to not be approved with a higher score.

Chase looks at many factors during the underwriting process. Another number that can sway an approval decision is how many credit cards you've opened recently. In what's unofficially known as the Chase 5/24 rule, Chase normally denies any applicant who has already opened five or more credit cards in the last 24 months.

LEARN MORE: What Credit Score Do I Need for a Chase Credit Card?

The Chase Sapphire Preferred® Card will be a match if you want a card that offers versatile travel rewards and that doesn't cost much per year. It's loaded with great travel perks, includes a hotel credit and anniversary points bonus, and offers high earning rates in both travel-related and everyday spending categories.

The best thing about the Chase Ultimate Rewards program is all the redemption opportunities it offers. You can transfer your points if there's an award booking you like, and if not, you can always use the Chase travel portal to book travel at cash prices. The Chase Sapphire Preferred® Card can earn you a lot of points in this program at a reasonable annual fee.

If this card isn't the right fit for you, take a look at our picks for the best travel rewards credit cards to find something more in line with your needs.

Our credit card methodology

At The Motley Fool Ascent, we rate credit cards on a five-star scale (1 = poor, 5 = best). Our rating criteria includes rewards rates, welcome bonuses, fees, and perks like travel credits and 0% intro APR offers to evaluate our ratings.

We combine these factors with an evaluation of brand reputation and customer satisfaction to ensure you're getting the best card recommendations. Learn more about how The Ascent rates credit cards.