What the Sapphire Preferred card is and who it targets
The Chase Sapphire Preferred is a rewards credit card designed for people who travel frequently or spend heavily on dining and entertainment. It charges an annual fee — currently $95 — and offers points on specific categories of spending rather than a flat rate on everything. The card is issued by Chase, a major US bank, and requires a credit score in the good to excellent range to be considered.
The card's main appeal is its rewards structure and the ability to transfer points to airline and hotel partners. If you rarely travel or don't eat out often, the annual fee will likely cost more than the rewards you earn. If you do travel or dine regularly, the points can offset the fee and add value beyond what a no-annual-fee card would provide.
Key Takeaways
- The Sapphire Preferred charges a $95 annual fee and earns 3 points per dollar on travel and dining, 1 point per dollar on everything else.
- Points can be redeemed for cash back, travel bookings through Chase's portal, or transferred to airline and hotel partners at a 1:1 ratio.
- The card includes travel protections like trip cancellation insurance and emergency medical and dental coverage abroad, which add value beyond the rewards.
- You need a credit score of roughly 700 or higher and a solid income history to be considered, though Chase does not publish exact requirements.
- The card makes financial sense only if your annual rewards exceed the $95 fee, which typically requires spending $3,000 to $5,000 per year in bonus categories.
How the rewards structure works
The Sapphire Preferred earns 3 points per dollar on travel purchases and dining at restaurants. Travel includes airfare, hotels, rental cars, taxis, rideshare, parking, trains, and gas stations. Dining covers restaurants and bars. Everything else — groceries, gas at non-station pumps, online shopping — earns 1 point per dollar.
Points are worth different amounts depending on how you redeem them. If you cash them out, each point is typically worth 1 cent, so 10,000 points equals $100. If you book travel through Chase's travel portal, points are usually worth 1.5 cents each. If you transfer points to an airline or hotel partner, the value varies by partner and redemption — sometimes 1 cent per point, sometimes more, sometimes less.
The card also offers a one-time bonus of points after you spend a certain amount in the first few months. This bonus amount changes periodically, so check Chase's current offer before you open the account. The bonus is where much of the card's early value comes from, especially if you can reach the spending threshold through planned purchases you would make anyway.
Travel protections and other benefits
Beyond rewards, the Sapphire Preferred includes several insurance and protection features. Trip cancellation and interruption insurance reimburses you if you have to cancel or cut short a trip for a covered reason — illness, injury, or death of a family member. Trip delay reimbursement covers meals and lodging if your flight is delayed more than 12 hours. Emergency medical and dental coverage applies to trips outside the US and covers urgent care up to a set limit.
The card also includes lost luggage reimbursement, emergency evacuation and transportation, and emergency information services. These protections are secondary to your travel insurance or health insurance, meaning they pay only after those policies have paid. They exist as a safety net, not as your primary coverage.
Purchase protection covers items bought with the card against theft or damage for 120 days. Extended warranty protection extends the manufacturer's warranty by an additional year on may be able to access items. These benefits are standard on premium rewards cards and add value, but they should not be your main reason to carry the card.
Annual fee and when it makes financial sense
The $95 annual fee is charged every year you hold the card, usually on the anniversary of when you opened it. To break even, you need to earn at least $95 in value from rewards and benefits each year. This typically means earning roughly 6,300 points annually if you redeem for cash back at 1.5 cents per point, or spending enough in bonus categories to generate that value.
If you spend $3,000 per year in dining and travel combined, you earn 9,000 points, worth $135 at 1.5 cents per point — enough to cover the fee and come out ahead. If you spend $5,000 in those categories, you earn 15,000 points, worth $225. If you spend less than $2,500 in bonus categories annually, the fee will likely exceed your rewards value, and a no-annual-fee card would serve you better.
The one-time sign-up bonus can make the card worthwhile in year one even if your ongoing spending is modest. If the bonus is 75,000 points and you spend $4,000 in the first three months to earn it, you have 75,000 points worth $1,125 at 1.5 cents per point — far more than the $95 fee. In subsequent years, the card's value depends entirely on your spending patterns.
Credit requirements and how the process works
Chase does not publish a minimum credit score for the Sapphire Preferred, but cardholders typically have scores of 700 or higher. The bank also looks at your income, employment history, and existing credit accounts. If you have recent late payments, high existing debt, or a thin credit file, you are less likely to be considered.
You can explore online through Chase's website. The process takes about 10 minutes and asks for your Social Security number, income, employment status, and existing credit accounts. Chase will pull a hard inquiry on your credit report, which temporarily lowers your score by a few points. You will receive a decision within minutes to a few days.
If you are denied, you can call Chase's reconsideration line to discuss your process. Sometimes the bank will approve you after a phone conversation, or it may suggest a different card that better matches your credit profile. There is no harm in asking, and the reconsideration call does not trigger another hard inquiry.
Comparing the Sapphire Preferred to similar cards
The main competitor is the Chase Sapphire Reserve, which charges a $550 annual fee but earns 3 points per dollar on all travel and dining, plus 1 point per dollar on everything else. It also includes a $300 annual travel credit that offsets much of the fee. The Reserve makes sense only if you spend heavily on travel and dining — typically $15,000 or more per year in those categories.
The American Express Gold Card charges $250 annually and earns 4 points per dollar on dining and airfare, 3 points per dollar on other travel. It does not have a travel credit, so the annual fee is a pure cost. It appeals to people who spend heavily on dining and airfare specifically and are willing to pay more for higher earning rates in those categories.
No-annual-fee alternatives include the Chase Freedom Unlimited, which earns 1.5 points per dollar on everything, and the Capital One Venture X, which charges $395 annually but earns 5 points per dollar on all travel and dining. Your choice depends on how much you spend in bonus categories and whether the protections and transfer partners matter to you.
How to maximize the card's value
The most straightforward way to maximize value is to concentrate your dining and travel spending on the card. If you eat out five times a month and take two trips per year, you will naturally earn enough points to cover the fee. Pairing the card with a cash-back card for everyday purchases — groceries, gas, online shopping — lets you earn rewards in both bonus and non-bonus categories without paying multiple annual fees.
The sign-up bonus is where most of the value comes from in the first year. If the bonus is 75,000 points, plan a trip or make planned purchases within the first three months to reach the spending threshold. Do not manufacture spending you would not otherwise make; the interest and fees on carried balances will erase any rewards value.
If you transfer points to airline or hotel partners, research the redemption rates before you transfer. Some partners offer better value than others, and transferring to the wrong partner can cut your points' worth in half. Chase's website shows the typical value of transfers to each partner, which helps you decide whether to transfer or redeem for cash back instead.
Frequently Asked Questions
Do I have to use the card for travel to make the annual fee worth it?
No. Dining also earns 3 points per dollar, so if you eat out frequently, you can reach the $95 threshold through dining alone. You need to spend roughly $3,000 per year in dining and travel combined to break even, depending on how you redeem your points.
What happens if I close the card after the first year?
You can close the card anytime without penalty. If you close it before the annual fee posts in year two, you avoid paying it again. Some people open the card for the sign-up bonus, use it for a year, and close it if their spending patterns do not justify the ongoing fee. There is no long-term commitment required.
Can I transfer points to any airline or hotel?
No. Chase has a list of transfer partners that includes most major airlines and hotel chains, but not all. You can see the full list on Chase's website before you open the card. If your preferred airline or hotel is not a partner, you can still redeem points for cash back or book through Chase's travel portal instead.
How long does it take to earn enough points to cover the annual fee?
It depends on your spending. If you spend $250 per month in dining and travel, you earn 750 points per month, or 9,000 points per year — enough to cover the fee in value. If you spend $100 per month in those categories, it takes longer. Most people who carry the card break even within the first three to six months of regular use.
Will the card hurt my credit score?
Opening the card will trigger a hard inquiry, which lowers your score by a few points temporarily. Over time, the card will help your score by adding to your available credit and giving you a longer credit history. The net effect is usually positive after six months to a year, as long as you pay the bill on time and keep your balance low.