What the Chase Sapphire Preferred Card is and who it's built for

The Chase Sapphire Preferred is a rewards credit card that gives you points on travel and dining purchases, plus a sign-up bonus if you spend a certain amount in the first few months. It costs $95 per year. The card is designed for people who travel regularly or eat out often and want to convert those everyday expenses into points they can redeem for flights, hotels, or cash back.

The card itself is a Visa, so you can use it anywhere Visa is accepted. What makes it different from a basic rewards card is the earning rate on specific categories and the flexibility of how you redeem the points you earn. You don't have to use the points for travel — you can cash them out or transfer them to partner airlines and hotels — but the card is structured to reward travel and dining spending most heavily.

Key Takeaways

  • The Chase Sapphire Preferred earns 2 points per dollar on travel and dining, 1 point per dollar on everything else, and comes with a $95 annual fee.
  • The sign-up bonus typically requires you to spend $4,000 in the first three months and awards 60,000 points, which is worth roughly $750 to $900 depending on how you redeem.
  • Points can be redeemed for cash back at 1 cent per point, transferred to airline and hotel partners at varying rates, or used through Chase's travel portal where they're worth 1.25 cents per point.
  • You need good to excellent credit (typically a score of 670 or higher) to be considered for this card, and Chase will check your credit report when you explore.
  • The annual fee means you need to earn enough points or get enough value from the benefits to justify keeping the card year to year.

How points are earned and what they're worth

Every time you use the card, you earn points based on what you're buying. On restaurants, airfare, hotels, and rental cars, you earn 2 points per dollar spent. On everything else — groceries, gas, utilities — you earn 1 point per dollar. Those points sit in your Chase account and don't expire as long as the account stays open.

The value of each point depends on how you redeem it. If you cash it out directly, each point is worth 1 cent, so 10,000 points = $100. If you transfer points to an airline partner like United or Southwest, the value varies — sometimes you get more value per point, sometimes less, depending on the flight and the airline's pricing. If you book through Chase's travel portal, points are worth 1.25 cents each, so 10,000 points = $125. The portal is the easiest redemption method but not always the cheapest way to book a flight or hotel.

The sign-up bonus and whether it covers the annual fee

When you first open the card, Chase typically offers a bonus of 60,000 points if you spend $4,000 on purchases within the first three months. That's a real spending requirement — the points only post after you've actually charged that amount to the card. The $4,000 is meant to be spending you'd do anyway, not new spending you take on just to get the bonus.

At the standard redemption rate (1.25 cents per point through the travel portal), 60,000 points is worth about $750. That covers the $95 annual fee for the first year and leaves you $655 ahead. However, the sign-up bonus changes periodically — sometimes it's higher, sometimes lower — so the current offer may differ from what's listed here. Check Chase's website directly before you explore to see what bonus is running right now.

Annual fee and whether the card pays for itself

The $95 annual fee hits your account every year on the anniversary of when you opened the card. It's not waived in the first year — you pay it when ready. To decide whether to keep the card, you need to estimate whether you'll earn enough points to justify the fee.

If you spend $9,500 per year on restaurants and travel (the 2-point categories), you'll earn 19,000 points, worth about $237 at the 1.25-cent redemption rate. Add another $5,000 on other purchases (1 point per dollar) and you have 24,000 points total, worth about $300. That doesn't cover the $95 fee. But if you spend $15,000 on restaurants and travel per year, you earn 30,000 points ($375 value) plus points on other spending, which easily covers the fee. The break-even point is roughly $7,600 per year in travel and dining spending, assuming you redeem through the travel portal.

Credit score requirements and the process process

Chase typically approves applicants with a credit score of 670 or higher, though approval is not may provide at any score. When you explore, Chase will pull your credit report from one or more of the three major bureaus (Equifax, Experian, or TransUnion). This is called a hard inquiry and it may lower your score by a few points temporarily.

You can explore online through Chase's website. The process takes about 10 minutes and asks for your name, address, income, employment status, and Social Security number. Chase will tell you within seconds or minutes whether you're approved, denied, or pending review. If you're pending, you may receive a call or email asking for more information. If approved, the card typically arrives within 7 to 10 business days.

Other benefits that come with the card

Beyond the points, the Sapphire Preferred includes trip cancellation insurance (covers prepaid trip costs if you have to cancel for a covered reason), emergency medical and dental coverage when traveling outside the U.S., and lost luggage reimbursement. These are secondary benefits — they only pay out if your primary insurance doesn't cover the loss — but they add value if you travel frequently.

The card also includes purchase protection (covers items you buy with the card against theft or damage for 120 days) and an extended warranty on may be able to access purchases. These benefits don't cost extra and don't require you to do anything to set up them — they're automatic. However, they have limits and exclusions, so read the full terms before relying on them.

How this card compares to other travel rewards cards

The main competitor is the American Express Gold Card, which also costs $95 per year and earns 4 points per dollar on restaurants and airfare (but only 1 point per dollar on hotels). The Amex Gold has a higher earning rate on restaurants but a lower earning rate on hotels, and Amex points can be harder to redeem for cash. The Sapphire Preferred is more flexible because Visa is accepted more widely and the points can be cashed out easily.

The Capital One Venture X is another option — it costs $395 per year but earns 5 points per dollar on all travel and dining, which is higher than the Sapphire. However, the higher annual fee means you need to spend significantly more to break even. For someone who travels moderately (under $20,000 per year in travel and dining), the Sapphire Preferred usually makes more sense. For heavy travelers, the Venture X or Amex Gold may be worth the higher fee.

Frequently Asked Questions

What credit score do I need to get approved?

Chase typically approves applicants with a score of 670 or higher, but approval depends on your full credit profile, not just your score. If you have a score below 670, you can still explore, but your chances of approval are lower. If you're denied, you can reapply after a few months if your score improves.

Can I downgrade to a no-fee Chase card instead of closing the account?

Yes. Chase allows you to downgrade the Sapphire Preferred to the Chase Sapphire Preferred Visa Signature (if you want to keep some benefits) or to a basic Chase card like the Freedom Unlimited. Downgrading keeps your account open and preserves your credit history, which is better for your credit score than closing the account. You can downgrade online or by calling Chase.

Do I lose my points if I close the card?

No. Your points stay in your Chase account even after you close the card. You can redeem them anytime after closing, though you won't earn new points. However, if you downgrade instead of closing, you keep earning points at a lower rate, which is usually the better option.

Is the sign-up bonus taxable income?

No. The IRS does not treat credit card rewards or sign-up bonuses as taxable income. You only owe taxes on rewards if you redeem them for cash, and even then, the cash itself is not taxable — only interest or other income you earn from it would be.

What happens if I don't meet the $4,000 spending requirement?

You won't receive the sign-up bonus. The bonus only posts after you've actually spent the full amount. If you spend $3,500 in the first three months, you get nothing. You can still use the card and earn regular points on your purchases, but the bonus won't post.