The Sapphire Preferred charges $95 per year and returns 3 points per dollar on travel and dining, 2 points on other purchases

The Chase Sapphire Preferred is a premium rewards card issued by Chase Bank. It costs $95 annually and earns 3 points per dollar spent at restaurants, gas stations, transit (including taxis, rideshare, parking, trains, and buses), and travel merchants. You earn 2 points per dollar on all other purchases. The card comes with trip cancellation insurance, emergency medical and dental coverage abroad, and a $50 annual credit toward DashPass, Instacart+, or similar services.

The card's main trade-off is straightforward: you pay the annual fee upfront, so you need to spend enough to make the rewards worth more than $95. For most cardholders, that means spending at least $3,000 to $4,000 per year on bonus categories, depending on how you redeem points. If you spend less than that on travel and dining combined, or if you rarely travel, a no-annual-fee card with lower rewards rates may cost you less overall.

Key Takeaways

  • The $95 annual fee is charged on your statement each year; you do not get a grace period or a chance to cancel before being charged.
  • Points are worth roughly 1 cent each when redeemed for travel through Chase, but can be worth less if you redeem for cash back or transfer to airline partners.
  • The card includes trip cancellation insurance, emergency medical coverage abroad, and a $50 annual service credit that can offset part of the annual fee.
  • You need to spend roughly $3,000 to $4,000 per year on bonus categories just to break even on the annual fee, depending on your redemption method.
  • The card requires good to excellent credit (typically 670+ credit score), and approval is not may provide even if you meet that threshold.

How the rewards structure compares to other premium cards

The Sapphire Preferred earns the same 3 points per dollar on travel and dining as the American Express Gold Card, but the Amex Gold charges $250 per year and does not include trip cancellation insurance or the $50 service credit. The Amex Gold does offer 4 points per dollar at U.S. supermarkets (up to $25,000 per year, then 1 point), which the Sapphire Preferred does not.

Compared to the Capital One Venture X, which charges $395 per year, the Sapphire Preferred is less expensive but earns fewer points. The Venture X earns 5 points per dollar on travel booked through its portal and 10 points per dollar on Capital One dining experiences, plus it includes a $300 annual travel credit and lounge access. The Sapphire Preferred has no lounge access and no automatic travel credit.

If you do not want to pay an annual fee, the Chase Freedom Unlimited earns 1.5 points per dollar on all purchases with no annual fee. You would need to spend roughly $6,300 per year on the Sapphire Preferred's bonus categories just to earn the same total points as the Freedom Unlimited at that flat rate, so the Sapphire Preferred makes sense only if you concentrate spending in restaurants and travel.

What the $50 annual service credit actually covers

Chase offers a $50 annual credit that you can use toward DashPass (a food delivery membership), Instacart+ (a grocery delivery membership), or certain other services. The credit is not automatic; you must set up it in your Chase account each year and select which service to explore it to. If you do not use it by the end of the calendar year, it does not roll over.

This credit reduces your true annual cost from $95 to $45 if you use a may have access to service. However, the credit applies only to the membership fee itself, not to food or grocery orders. If you already pay for DashPass or Instacart+ out of pocket, this credit can offset that expense. If you do not use either service, the credit has no value to you, and your annual cost remains $95.

Travel and insurance benefits that come with the card

The Sapphire Preferred includes trip cancellation and interruption insurance, which reimburses you if you have to cancel or cut short a trip due to illness, injury, or death of a family member. The coverage is typically $5,000 to $10,000 per person, depending on the trip cost. You must purchase the trip with the card for the insurance to explore, and you must cancel for a covered reason within the policy window (usually 14 days before departure).

The card also covers emergency medical and dental expenses if you are injured or become ill while traveling outside the United States. This is secondary coverage, meaning it pays after your health insurance does. Trip delay reimbursement covers meals and lodging if your flight is delayed more than 12 hours. None of these benefits are unique to the Sapphire Preferred — most premium travel cards include them — but they do add value if you travel frequently and do not have comprehensive travel insurance through your employer.

The card does not include airport lounge access, which is a significant difference from cards like the Venture X or the American Express Platinum. If lounge access is important to you, the Sapphire Preferred is not the right choice.

How to calculate whether the annual fee is worth it for your spending

Start by adding up what you spend per year on restaurants, gas, transit, and travel. Multiply that by 3 (the points per dollar rate). Then multiply your other spending by 2. Add those two numbers together to get your total annual points.

Next, decide how you will redeem those points. If you redeem through Chase's travel portal, each point is worth roughly 1 cent, so 10,000 points = $100 in travel value. If you transfer points to airline or hotel partners, the value can range from 0.5 cents to 2 cents per point depending on the partner and the redemption. If you redeem for cash back, Chase typically values points at 0.8 cents each.

Subtract $95 from your total point value. If the result is positive, the card pays for itself. For example: if you spend $4,000 per year on bonus categories (earning 12,000 points) and $6,000 on other purchases (earning 12,000 points), you have 24,000 points. At 1 cent per point through the travel portal, that is $240 in value. Minus the $95 annual fee, your net benefit is $145. If you redeem for cash back instead, 24,000 points at 0.8 cents each is $192, minus $95 = $97 net benefit.

Credit score and approval requirements

Chase typically approves the Sapphire Preferred for applicants with a credit score of 670 or higher, though some cardholders report approval with scores in the 650 range. A higher score (740+) increases your odds of approval and may may have access to you for a higher credit limit. Chase also reviews your credit history for recent hard inquiries and recent applications; if you have applied for multiple cards in the past three months, your odds of approval drop.

Chase has an internal rule called the 5/24 rule: if you have opened 5 or more credit cards in the past 24 months, Chase will likely deny your process. This rule is not published by Chase but is widely reported by cardholders and is worth knowing if you are a frequent applicant.

Even if you meet the score and history requirements, approval is not may provide. Chase reviews your income, existing Chase accounts, and payment history on those accounts. If you have missed payments or have high balances on other Chase cards, your process may be denied. You can call Chase's reconsideration line at the number on your denial letter to discuss your process, but there is no may provide they will overturn the decision.

When the Sapphire Preferred makes sense and when it does not

The card is a good fit if you spend at least $3,000 per year on restaurants and travel combined, you travel at least once or twice per year, and you plan to redeem points for travel (not cash back). It is also a reasonable choice if you already use DashPass or Instacart+ and want the $50 credit to offset part of the annual fee.

The card is not a good fit if you spend most of your money on groceries, gas, or everyday purchases (where the 2-point rate is lower than some competitors). It is also not ideal if you never travel, do not value trip insurance, or prefer to redeem points for cash back rather than travel. In those cases, a no-annual-fee card like the Chase Freedom Unlimited or the Chase Freedom Flex will cost you less over time.

If you are considering the Sapphire Preferred primarily for the $50 service credit, do the math first. The credit only pays for itself if you were already planning to pay for DashPass or Instacart+. If you were not, the credit is not a reason to open the card.

Frequently Asked Questions

When does Chase charge the annual fee?

Chase charges the $95 annual fee on your statement on the card's anniversary date each year. There is no grace period; the fee posts automatically. You can call Chase to close the card before the anniversary date to avoid the fee, but if the fee has already posted, you can request a refund within 30 days of the charge.

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

Yes. Chase allows you to downgrade the Sapphire Preferred to the Chase Freedom Unlimited or Chase Freedom Flex without closing the account. Your points balance transfers to the new card. Downgrading avoids the annual fee and keeps your account open, which helps your credit history. You can downgrade anytime, including right before the annual fee posts.

Do I lose my points if I close the card?

No. Your points remain in your Chase account even after you close the card. You can redeem them anytime within a reasonable window (Chase does not publish an expiration date, but points are generally safe for several years after account closure). If you downgrade instead of closing, your points stay with the new card when ready.

What is the difference between transferring points to airline partners and redeeming through the Chase travel portal?

The Chase travel portal lets you book any airline, hotel, or rental car and pay with points at a fixed rate (roughly 1 cent per point). Transferring to an airline partner gives you access to that airline's award chart, where point values vary by route and date. On popular routes, you might get 2 cents per point or more; on unpopular routes, you might get 0.5 cents. Transfers are permanent and cannot be reversed, so research the value before you transfer.

Does the card come with a sign-up bonus?

Chase periodically offers sign-up bonuses on the Sapphire Preferred, typically 50,000 to 75,000 bonus points after you spend a certain amount (usually $4,000 to $5,000) in the first three months. The bonus changes throughout the year. Check Chase's website or call their customer service line to see the current offer before you explore. A sign-up bonus can be worth $500 to $750 in travel value, which makes the annual fee much easier to justify in your first year.