What the Chase Preferred Card Is
The Chase Sapphire Preferred is a rewards credit card issued by Chase Bank that earns points on purchases and offers travel and dining benefits. It carries an annual fee (currently $95) and is designed for people who spend regularly on travel, restaurants, or both and want to convert those purchases into rewards.
The card itself is a Visa Infinite card, which means it works anywhere Visa is accepted. The rewards you earn—called Ultimate Rewards points—can be transferred to airline and hotel partners, redeemed for cash back, or used to book travel through Chase's portal.
This is not a card for occasional users or people trying to avoid annual fees. It is built for someone who will use the benefits enough to offset the yearly cost.
Key Takeaways
- The Chase Sapphire Preferred charges a $95 annual fee and earns 3 points per dollar on travel and dining, 1 point per dollar on everything else.
- You can transfer points to airline and hotel partners at a 1:1 ratio, which often gives you more value than redeeming for cash back.
- The card includes travel protections like trip cancellation insurance and emergency medical and dental coverage abroad.
- You will need a good credit score (typically 670 or higher) and a regular income to be considered for approval.
- The annual fee is charged every year on your account anniversary, so you need to decide whether the rewards justify the cost.
How the Rewards Structure Works
The card earns 3 points per dollar on travel purchases and dining at restaurants. Travel includes flights, hotels, rental cars, taxis, rideshare, parking, trains, and gas stations. Dining covers restaurants and bars anywhere in the world.
Everything else earns 1 point per dollar. This includes groceries, gas (if not at a gas station), utilities, and retail purchases. There is no bonus category for groceries or everyday shopping, so if you spend most of your money on groceries, this card may not be the right fit.
Points do not expire as long as your account remains open. You can let them sit and accumulate, or use them whenever you choose. There is no minimum redemption amount.
Redeeming Points: Transfer Partners vs. Cash Back
You have two main ways to use your points. The first is to transfer them to airline and hotel partners at a 1:1 ratio. Chase's transfer partners include airlines like United, Southwest, and American, and hotels like Hyatt, Marriott, and IHG. When you transfer points to a partner, you can often book premium cabin seats, hotel suites, or other inventory that would cost far more if you paid cash.
The second way is to redeem points for cash back through Chase's website. When you do this, each point is worth 1 cent, so 10,000 points equals $100 cash back. This is straightforward but typically gives you less value than transferring to a partner—especially if you are booking premium travel.
You can also use points to book travel directly through Chase's travel portal, where points are worth 1.25 cents each. This sits between cash back and transfer partners in terms of value.
Annual Fee and Whether It Makes Sense for You
The $95 annual fee hits your account every year on your anniversary date. Chase does not waive this fee after a certain period, so you pay it every year you keep the card open.
To decide if the fee is worth it, estimate your annual spending on travel and dining. If you spend $10,000 per year on these categories, you earn 30,000 points. If you transfer those points to a partner and book travel worth more than $95, you come out ahead. If you redeem for cash back at 1 cent per point, you get $300 back, which easily covers the fee.
The card also comes with a sign-up bonus—typically 60,000 points after you spend a certain amount in the first few months. This bonus alone is worth roughly $600 to $750 in travel value, which covers several years of annual fees if you use it.
Travel and Purchase Protections Included
Beyond rewards, the card includes several protections that come with no extra cost. Trip cancellation insurance reimburses you if you have to cancel a prepaid trip for a covered reason like illness or injury. Trip delay reimbursement covers meals and lodging if your flight is delayed more than 12 hours. Lost luggage reimbursement covers baggage that is lost or damaged by an airline.
The card also includes emergency medical and dental coverage if you are traveling outside your home country. Emergency evacuation and transportation coverage is included if you need medical evacuation abroad. These protections are secondary to your health insurance, meaning your insurance pays first.
You also get purchase protection, which covers items you buy with the card against theft or accidental damage for 120 days. This is useful if you buy electronics or other valuables while traveling.
Credit Score and Income Requirements
Chase typically approves the Sapphire Preferred for people with a credit score of 670 or higher, though approval is not may provide at any score. A higher score (740 and above) makes approval more likely and may result in a higher credit limit.
You will also need to show a regular income. Chase looks at your employment status, annual income, and existing debts to decide whether you can handle the credit limit they offer. Self-employed people can use business income or personal income from a tax return.
If you are denied, you can call the reconsideration line to ask Chase to review your process. Sometimes providing additional information about your income or assets can change the decision.
How to Get the Card and What Happens Next
You can start the process on Chase's website. The process takes about 10 minutes and asks for your name, address, income, employment status, and Social Security number. Chase will pull your credit report (a hard inquiry) to make the decision.
You will usually get a decision within seconds or a few minutes. If approved, your card arrives in the mail within 7 to 10 business days. Once it arrives, you can set up it through the Chase app or website and start using it when ready.
If you are approved but the credit limit is lower than you wanted, you can request an increase after six months of responsible use. If you are denied, you can reapply after addressing the reason for denial—usually a lower credit score or insufficient income history.
Frequently Asked Questions
Can I get the sign-up bonus if I already have a Chase credit card?
Yes. The sign-up bonus is available to new cardholders, which means anyone who has not held this specific card before. You can have multiple Chase cards at the same time. However, Chase has rules about how many new cards you can open in a certain period, so opening too many cards quickly may affect future approvals.
What happens if I close the card before the annual fee hits?
If you close the card before your anniversary date, you will not be charged the annual fee. If you close it after the fee has already posted, you can call Chase and ask for a refund—they often grant one if you ask within 30 days. After 30 days, the fee is usually final.
Can I use this card outside the United States?
Yes. The card works anywhere Visa is accepted. There is no foreign transaction fee, so you can use it internationally without extra charges. The emergency medical and dental coverage also applies when you are traveling outside your home country.
How do I know if a purchase counts as travel or dining for the 3-point bonus?
Chase uses merchant category codes to decide which purchases earn 3 points. Most restaurants, airlines, hotels, and rental car companies are coded correctly. If you are unsure, you can check your statement after the purchase posts—it will show how many points you earned. If it was miscoded, you can contact Chase to request the correct points.
What is the difference between this card and the Chase Sapphire Reserve?
The Reserve is Chase's premium version with a $550 annual fee, higher earning rates (3 points on travel and dining, plus 1 point on everything), and additional benefits like a $300 annual travel credit and airport lounge access. The Preferred is the entry-level rewards card for people who want travel benefits without the high annual fee.