The Chase Sapphire Preferred intro bonus recently changed from 50,000 to 60,000 points, and the $95 annual fee is not waived the first year. Should you still get the Chase Sapphire Preferred?
Intro Bonus and Eligibility
The Chase Sapphire Preferred® card has a 60,000 points intro bonus after spending $4,000 on the card within the first 3 months of account opening.
Chase Sapphire cards have a few application rules to be aware of:
The Chase Sapphire cards are affected by the Chase 5/24 rule.
If you have opened more than 5 accounts from any credit card issuer in the past 24 months, you don’t qualify for the intro bonus.
You can earn a Chase Sapphire (Preferred or Reserve) welcome offer once every 48 months = 4 years.
You can only hold have one Sapphire card at a time (unless you’re grandfathered with an old card before the rule was implemented).
Since the Chase Sapphire Preferred is a Visa Signature card, the minimum credit limit is $5,000; be sure your income is enough to qualify.
Chase Sapphire Preferred® Card Calculator
Ask Sebby crunches the numbers for you to calculate the Expected Value of the Chase Sapphire Preferred® Card. For the expected value of points, we derive the approximate dollar value based on the numbers you enter in the calculator. Scroll down to the end of the post to see our methodology.
The calculator below contains default figures and serve as an example only. Users should insert their own data for the most accurate results.
The results from the above calculator are based on your ability to reach the minimum spend requirement to earn the welcome offer, your amount of spend on different categories, how you plan to redeem Chase Ultimate Rewards, and how much relative value you assign to the other benefits.
The “Years” referenced in the calculator refer to the cardmember year, based on when you are approved for the card.
Year 1 = first 12 months of card membership
Year 2 = the following 12 months afterward
Chase Sapphire Preferred® Card
Annual fee: $95
Welcome bonus: 60,000 Ultimate Rewards points after $4,000 in spend within the first 3 months of account opening; equivalent to $750 when you redeem points for travel through the Chase Travel Portal
Earn 2X points on travel purchases including airfare, hotels, cruises, and rideshare
Earn 2X points on dining purchases including fine dining, coffee shops, and fast food restaurants
Earn 1X points on all other purchases
Foreign transaction fees: 0%
Redeem points for 1.25X in travel through the Chase Travel Portal
1:1 Point transfer to airline and hotel partners
Primary collision damage waiver (CDW)
The Chase Sapphire Preferred is ideal for those who want a higher point redemption (25%) for travel by using the Chase Ultimate Rewards Travel Portal and access to transfer partners.
Travel confidently with built-in travel protections when you book trips with the Chase Sapphire Preferred. Below are a handful of travel benefits:
Primary auto rental collision damage waiver (CDW)
Trip cancellation/interruption insurance
Baggage delay insurance
Trip delay reimbursement
If you're looking for access to airport lounges, consider the Chase Sapphire Reserve instead.
How Much Are Chase Ultimate Rewards Points Worth?
Depending on how you plan on redeeming your Chase Ultimate Rewards points, they can be worth between 1-2 cents per point.
Chase Ultimate Rewards Redemption Rates
|Value Per Point|
|Statement Credits||1 cent|
|Cash Back||1 cent|
|Gift Cards||1+ cent|
|Travel via Chase Ultimate Rewards Travel Portal||1.25 cents|
|Airline and Hotel Transfer Partners||1.25+ cents|
Value of the 60,000 Points Intro Bonus: Return On Spend
To calculate the return on spend (ROS) for the increased 60,000 point offer, divide the cents per point valuation (CPP) by the $4,000 minimum spend amount.
60,000 Chase UR intro bonus:
a) Cash (statement credit)
1 CPP = $600 value / $4,000 min spend = 15% ROS
b) Travel via Chase Ultimate Rewards Travel Portal
1.25 CPP = $750 / $4,000 = 18.75% ROS
c) Transfer partners
Target value = 2 CPP = $1,200 / $4,000 = 30% ROS
Aggressive value = 3 CPP = $1,800 / $4,000 = 45% ROS
Strategies to Meet Minimum Spend Requirements
The Chase Sapphire Preferred has a minimum spend requirement of $4,000 within the first 3 months of account opening to earn the intro bonus. Since this can be a larger than usual spend amount for some people, below are some ideas to meet the spend requirement.
You can use a credit card to pay:
c) Student loans
d) Business vendors
If the merchant typically doesn’t take credit card payments, consider checking out Plastiq. There’s a 2.5% fee, but it enables you to pay merchants with a card; they’ll send a check on your behalf.
Try Plastiq and get $500 in fee-free payments after you spend $500 (referral link): http://bit.ly/asksebbyplastiq
The Chase Sapphire Preferred is a travel card that lets you redeem points for travel via the Chase Ultimate Rewards Travel Portal for 1.25X. If you want to get even more value from the Ultimate Rewards points, you can transfer the points out to airline or hotel transfer partners and get up to 2 cents per point in value.
Editorial Note: Opinions expressed here are the author's alone, not those of any bank, credit card issuer, airlines or hotel chain, vendors or companies, and have not been reviewed, approved, or otherwise endorsed by any of these entities.
UGC disclosure: These responses are not provided or commissioned by the bank advertiser. Responses have not been reviewed, approved or otherwise endorsed by the bank advertiser. It is not the bank advertiser's responsibility to ensure all posts and/or questions are answered.”