Chase Preferred gives you cash back, travel credits, and purchase protections that vary by which Preferred card you hold
Chase makes several cards under the "Preferred" name, and the benefits differ depending on which one you carry. The most common is the Chase Sapphire Preferred, which rewards travel and dining purchases with higher cash back rates, includes trip cancellation insurance, and offers a statement credit for certain travel expenses. Other Chase Preferred cards — like the business version — have their own benefit sets. Before comparing, you need to know which card you're actually looking at, because the annual fee and rewards structure are not the same across all of them.
The benefits only work if you use the card. A $95 annual fee (on the Sapphire Preferred) makes sense only if you spend enough on travel and dining to earn back more than that in rewards or credits. This guide walks through what each major Chase Preferred card includes, how to use those benefits without leaving money on the table, and whether the annual fee pays for itself in your situation.
Key Takeaways
- Chase Sapphire Preferred rewards 3X points on travel and dining, 1X on everything else, and charges a $95 annual fee that you recoup through a $50 annual travel credit and higher rewards on those categories.
- The card includes trip cancellation insurance, lost luggage reimbursement, and emergency medical and dental coverage while traveling — benefits that protect you if plans fall apart.
- Points are worth more when you redeem them through Chase's travel portal or transfer them to airline and hotel partners, rather than taking cash back.
- The annual fee makes sense only if you spend at least $2,000 to $3,000 per year on travel and dining combined, depending on how you redeem points.
- You can downgrade to a no-annual-fee Chase card after the first year if the benefits don't match your spending, without closing the account or damaging your credit.
How the rewards structure works on Chase Sapphire Preferred
The card earns 3 points per dollar on travel purchases and restaurants, 1 point per dollar on everything else. A "point" is not the same as a cent — its value depends on how you redeem it. If you cash out points directly, each point is worth roughly 1 cent, so 3X points on dining is worth about 3% cash back. But if you transfer points to an airline or hotel partner, or redeem through Chase's travel portal, each point can be worth 1.5 cents or more, making that 3X category worth 4.5% or higher.
The $95 annual fee is offset partly by a $50 annual travel credit that posts once per year. That credit covers airline tickets, hotels, rental cars, and some other travel expenses — but not gas, parking, or tolls. You have to use it or lose it each year. After accounting for that $50 credit, your net annual fee is $45, which you need to earn back through higher rewards rates on the categories where you spend.
Travel and purchase protections included with the card
Beyond rewards, the Sapphire Preferred includes several insurance and protection benefits. Trip cancellation insurance reimburses you up to $10,000 per person if you have to cancel a prepaid trip due to illness, injury, or death of a family member. Trip delay reimbursement covers meals and lodging if your flight is delayed more than 12 hours. Lost luggage reimbursement covers baggage and personal items if an airline loses or damages your luggage.
The card also includes emergency medical and dental coverage while you're traveling outside the United States, which can save you thousands if you need urgent care abroad. Emergency evacuation and transportation covers the cost of emergency transport to the nearest hospital if you're injured or become ill while traveling internationally. These protections don't replace travel insurance, but they fill gaps and cost you nothing beyond the annual fee you're already paying.
Other Chase Preferred cards and their different benefits
Chase also offers a Chase Sapphire Preferred for Business, which has a similar rewards structure (3X on travel and dining, 1X elsewhere) but a higher $95 annual fee and slightly different travel protections. There is also a Chase Preferred Card (without "Sapphire"), which is a different product aimed at people building credit — it has no rewards, no annual fee, and no travel benefits, but does include purchase protection and fraud liability limits.
If you see "Chase Preferred" without more detail, confirm which card is being discussed before comparing benefits. The rewards rates, annual fees, and protections are not interchangeable. Chase's website and your card's benefits guide will specify which version you hold.
When the annual fee makes financial sense
The $95 annual fee (minus the $50 travel credit) breaks even if you earn $45 or more in extra rewards compared to a no-annual-fee card. On the Sapphire Preferred, you earn an extra 2X points on travel and dining compared to a basic Chase card. If you spend $2,000 per year on those categories and redeem points at 1.5 cents each, you earn $60 in extra value — enough to cover the net $45 fee.
If you spend less than $1,500 per year on travel and dining combined, or if you rarely travel, the annual fee likely costs you more than you gain. In that case, a no-annual-fee card like the Chase Freedom Unlimited (1.5% cash back on everything) or Chase Freedom Flex (5% on rotating categories) may serve you better. You can downgrade to one of these cards without closing your account or harming your credit score, so there's no penalty for trying the Sapphire Preferred for a year and switching if it doesn't fit.
How to maximize the $50 annual travel credit
The $50 travel credit posts once per calendar year and covers airline tickets, hotels, rental cars, parking, tolls, taxis, rideshare, trains, buses, and some travel booking sites. It does not cover gas, groceries, or general merchandise. The credit is automatic — you don't have to request it — but you have to use it or it expires at the end of the year.
To get the most from it, plan a trip or book a flight in the month before your card anniversary, so the credit posts and you can use it when ready. If you travel multiple times per year, spread bookings across calendar years to use the credit each time. If you don't travel, the credit goes unused, which makes the card's value harder to justify.
Redeeming points for maximum value
Points are worth the most when transferred to airline and hotel partners rather than cashed out. Chase's transfer partners include major airlines (United, Southwest, American, Delta) and hotel chains (Hyatt, IHG, Marriott). A point transferred to Hyatt, for example, might be worth 1.5 to 2 cents, while the same point cashed out is worth only 1 cent.
The trade-off is that transfer redemptions require more planning. You have to know which airline or hotel you want to book, check their award charts, and decide whether the point value is worth it. Cash redemptions are when ready and require no strategy. If you prefer simplicity over maximum value, cash back may be the right choice — just know you're leaving money on the table compared to transfer redemptions.
Frequently Asked Questions
Does the $50 travel credit cover all travel expenses?
No. It covers airline tickets, hotels, rental cars, parking, tolls, taxis, rideshare, trains, buses, and some travel booking sites. It does not cover gas, groceries, or items purchased at airports that aren't travel-related. Check your receipt category to confirm the charge will may have access to.
Can I downgrade to a different Chase card to avoid the annual fee?
Yes. You can downgrade to a no-annual-fee Chase card like the Freedom Unlimited or Freedom Flex without closing the account or affecting your credit score. Call Chase and ask to downgrade; they will process it when ready. Your original account stays open, which preserves your credit history.
What happens to my points if I downgrade or close the card?
Your points stay in your Chase account and don't expire as long as you keep at least one Chase card open. If you close all Chase cards, points may be forfeited after a period of inactivity. Keep one card active to protect your points balance.
Is the travel credit worth it if I don't travel much?
Probably not. If you travel fewer than two or three times per year, or spend less than $1,500 annually on travel and dining, the $95 annual fee (minus the $50 credit) is unlikely to pay for itself. A flat-rate cash back card may be a better fit.
How do I know if my purchase qualifies for the travel credit?
Check the merchant category code on your statement. Travel-related merchants (airlines, hotels, rental car companies, taxis, rideshare) will trigger the credit. If you're unsure, contact Chase before booking to confirm the merchant qualifies.