Chase Sapphire Preferred Credit Card Review
- October 22, 2018
- Posted by: Jeff Gitlen
- Category: Credit Cards
- 2x points on travel and dining
- 1 point on all other purchases
- Travel and purchase coverage
- 16.99% - 23.99%
- Cash Advance APR: 25.99%
- Penalty APR: N/A
- 50,000 bonus points after you spend $4,000 on purchases in the first 3 months
- $0 intro annual fee for the first year
- 25% more in travel redemption
Since there are various credit cards specifically meant to provide benefits towards travel expenses such as train tickets or airfare, Chase provides one of the best rewards credit cards with accompanying travel benefits. The introduction of the Chase Sapphire Preferred® Credit Card is one of the ways that Chase has tried to offer its customer base beneficial travel rewards.
Benefits and Rewards
A headlining sign up offer of 50,000 bonus points rewards new cardholders for spending $4000 within the first three months after obtaining the Sapphire Preferred® Card. With each reward point retaining a value of one cent, this bonus offer equates to $500 which is a return of 12.5% on these initial purchases.
In addition to the headliner, another bonus reward of 5000 points is awarded to the account for making at least one purchase and adding an extra authorized user to the account. If $4000 is spent in the first three months and a new user is authorized to make purchases on the account, a Sapphire Preferred® cardholder receives a grand total of 55,000 reward points to the account ($550) - making this card a great rewards credit card.
New opportunities to earn double reward points present themselves when using the Chase Sapphire Credit Card. Every dollar spent on travel expenses garners two reward points which rewards travelers who bring their Sapphire Preferred® Card for the trip. Dining and restaurant expenses yield double rewards points similar to the Chase Sapphire Credit Card offer.
As is standard, general everyday purchases receive one reward point per dollar spent, and these points are redeemable once at least 2000 points are saved. Points are redeemable towards travel expenses and gift cards. When redeeming points towards travel related expenses, Sapphire Preferred® members receive an additional 25% of the points value; for instance, a redemption of 100 points is worth $1.25 instead of $1. This increase essentially provides discounts towards travel expenses such as airfare and other methods of travel.
Chase guarantees fraud liability protection for its patrons in case any fraudulent activity is detected on an account. Cardholders can enjoy that additional security when making everyday purchases. Instant alerts are available to keep cardholders updated on suspicious activity, and access to human customer service associates is readily available.
Rates and Fees
16.24% - 23.24%
$5 or 5%
Chase offers a $0 introductory fee for the first year after obtaining the Sapphire Preferred® Credit Card; once this first year passes by, the annual fee reverts to $95. Whenever a balance transfer occurs, a transaction fee of either $5 or 5% applies, and the value of the fee is decided between which rate creates the greater value. The same stipulation is upheld for any cash advance, but the rate for these types of transactions is either $10 or 5%.
There is no foreign transaction fee for the Sapphire Preferred® Card. The typical penalty fees apply to the Sapphire Preferred® Card. Fees up to $15 applies to late payments on balances of less than $100, fees up to $27 applies to late payments on balances between $100 and $250, and fees up to $37 applies to balances over $250. If a payment is returned for any reason, a penalty fee of a $37 maximum is applied, but a returned check does not bring about any additional fees.
There are several annual percentage rates (APR) associated with Sapphire Preferred® membership. The APR for regular purchases and balance transfers varies between rates of 16.24% and 23.24% (variable). The APR for a cash advance is 25.24% (variable), and the overdraft APR is 25.24% (variable).
While the Chase Sapphire Preferred® Credit Card requires its user to spend more, it offers benefits that are more specifically travel oriented than other Chase credit cards. If a cardholder plans on traveling, this card is certainly one of the better choices over some of the other Chase products. On the contrary, if a potential cardholder does not plan on taking advantage of the travel benefits, another credit card is advisable.
Not satisfied? Check out some of the best Chase credit cards that we have reviewed.