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

The Chase Sapphire Preferred is a rewards card designed around travel and dining purchases. It earns 2 points per dollar on travel and restaurants, and 1 point per dollar on everything else. The card charges an annual fee — currently $95 — which Chase offsets partly through an annual travel credit that reimburses certain purchases like airfare, hotels, and rental cars up to $50.

The card makes sense if you spend at least $3,000 to $4,000 per year on travel or dining, because the rewards and credits can outweigh the annual fee. If you rarely travel or eat out, the fee costs more than you'll earn back. The card requires good credit — typically a score of 670 or higher — to be approved.

Key Takeaways

  • The card earns 2 points per dollar on travel and restaurants, 1 point on everything else, and points can be transferred to airline and hotel partners or redeemed for cash.
  • An annual $95 fee is offset by a $50 annual travel credit, making the true cost $45 per year if you use the credit.
  • The card includes trip cancellation insurance, emergency medical and dental coverage abroad, and lost luggage reimbursement.
  • Points are worth more when transferred to travel partners than when redeemed for cash — typically 1.5 cents per point versus 1 cent.
  • You need good credit to be approved, and the card works best if you spend $3,000 or more annually on travel and dining combined.

How the rewards and annual fee actually work

You earn points on every purchase, but the earning rate depends on the category. Travel and restaurants earn 2 points per dollar. Everything else — groceries, gas, utilities, online shopping — earns 1 point per dollar. There is no cap on points earned, so the more you spend, the more you accumulate.

The $95 annual fee posts to your account each year on your card anniversary. Chase also provides a $50 annual travel credit that reimburses purchases in the travel category — this includes flights, hotels, rental cars, parking, tolls, trains, taxis, and rideshare services like Uber. The credit does not cover meals or entertainment while traveling. If you use the full $50 credit each year, your net cost is $45 annually.

Points can be redeemed three ways. You can transfer them to airline and hotel partners at a 1:1 ratio — for example, 10,000 points become 10,000 airline miles. You can redeem them for cash back at a rate of 1 cent per point — so 10,000 points equal $100. Or you can book travel directly through Chase's travel portal, where points are typically worth 1.5 cents each. The transfer option usually gives you the most value if you're flexible about which airline or hotel you use.

Travel protections and insurance included with the card

Beyond rewards, the card includes several travel-related protections. Trip cancellation and interruption insurance reimburses prepaid, non-refundable trip costs if you or a family member becomes ill or injured before departure. The coverage limit is typically $10,000 per person. Emergency medical and dental coverage abroad pays for treatment needed while traveling outside the United States, up to a set limit.

Lost luggage reimbursement covers baggage and personal items if an airline loses or damages your checked or carry-on bags. The card also includes emergency evacuation and transportation coverage, which pays for emergency medical evacuation if you're injured or ill while traveling more than 100 miles from home. Purchase protection covers items bought with the card against theft or accidental damage for 120 days.

These protections have limits and exclusions — for example, trip cancellation typically does not cover claims related to pre-existing medical conditions unless you buy the card within 14 days of your initial trip deposit. Read the full terms in the benefits guide before relying on any coverage.

How to compare this card to other travel rewards cards

The Sapphire Preferred competes mainly with the Capital One Venture X and the American Express Gold Card. The Venture X charges $395 annually but includes a $300 annual travel credit and earns 2 points per dollar on all purchases, not just travel and dining. The Amex Gold charges $250 annually, earns 4 points per dollar on restaurants and 3 points per dollar on flights booked directly with airlines, but earns only 1 point per dollar on other purchases.

The Sapphire Preferred's advantage is its lower annual fee and its flexibility — the 2 points on restaurants explore to any restaurant, not just those booked directly. Its disadvantage is that it earns only 1 point per dollar on most everyday purchases, whereas the Venture X earns 2 points on everything. If you spend heavily on dining and travel but less on other categories, the Sapphire Preferred is usually the better value. If you spend evenly across all categories, the Venture X may be worth the higher fee.

There are also no-annual-fee travel cards like the Chase Sapphire Preferred's sibling, the Chase Sapphire Select, which earns 1.5 points per dollar on travel and dining and 1 point on everything else. The Select has no annual fee and no travel credit, making it a lower-cost option if you don't spend enough to justify the Preferred's fee.

What happens when you explore and how credit limits work

The process process is online and takes about 15 minutes. Chase will ask for your Social Security number, income, employment status, and housing information. You'll receive a decision when ready or within a few days. If approved, your card typically arrives within 7 to 10 business days.

Chase assigns you a credit limit based on your credit score, income, and existing credit history. The limit is the maximum you can charge to the card. If you're approved for $5,000, you can spend up to $5,000 before you need to pay down the balance. You can request a credit limit increase after you've had the card for at least 6 months, and Chase will usually review your request without a hard inquiry if you ask online.

explore for the card results in a hard inquiry on your credit report, which may lower your credit score by a few points temporarily. This inquiry stays on your report for about two years but stops affecting your score after 12 months. If you've applied for multiple credit cards in the past few months, Chase may deny your process or offer you a lower credit limit.

Annual fees, interest rates, and when to close the card

The $95 annual fee renews every year on your card anniversary. You can cancel the card anytime without penalty — there is no early termination fee. If you decide the card isn't worth the cost, you can close it online through your Chase account or call the number on the back of your card.

If you carry a balance month to month, the card charges interest on that balance. The interest rate (called the APR, or annual percentage rate) varies based on your creditworthiness and current market rates, but typically ranges from 18% to 27%. Carrying a balance is expensive — if you owe $1,000 at 22% APR, you'll pay about $220 in interest over a year. The card's rewards are designed for people who pay off their balance in full each month.

Before closing the card, consider whether you'll lose valuable benefits. If you have points accumulated, you can redeem them before closing. If you've used the $50 travel credit in the current year, closing the card won't refund it. Some people keep the card open even in low-spending years because the $50 travel credit reduces the true annual cost to $45, which is worth it if they travel at least once per year.

How points transfer to airline and hotel partners work

Chase partners with dozens of airlines and hotels, including United, Southwest, American Airlines, Marriott, Hyatt, and IHG. When you transfer points to a partner, they convert at a 1:1 ratio — 10,000 Sapphire points become 10,000 airline miles or hotel points. The transfer is when ready and irreversible, so double-check the partner and amount before confirming.

The value of transferred points depends on how you use them. If you transfer 10,000 points to United and redeem them for a $150 flight, you've gotten 1.5 cents per point. If you transfer the same 10,000 points and redeem them for a $100 flight, you've gotten only 1 cent per point. The best value usually comes from booking premium cabin flights (business or first class) or redeeming during high-demand travel periods, where award availability is limited and cash prices are high.

Some partners offer transfer bonuses — for example, Chase might offer 50% more miles if you transfer to a specific airline during a promotion. These bonuses appear in your Chase account when they're active. Signing up for a partner's frequent flyer program before transferring points ensures the points land in the correct account.

Frequently Asked Questions

Do I have to use the $50 travel credit every year?

No, but if you don't use it, you're paying the full $95 annual fee. The credit resets each year on your card anniversary, so unused credit does not roll over. If you travel at least once per year and book flights or hotels, using the credit is straightforward — it reimburses automatically when you charge travel purchases to the card.

What's the difference between transferring points and redeeming them for cash?

Transferred points are usually worth more. When you transfer to an airline partner, 10,000 points typically equal a flight worth $150 to $200 (1.5 to 2 cents per point). When you redeem for cash, 10,000 points equal $100 (1 cent per point). The tradeoff is that transfers require you to book specific flights or hotels, while cash is flexible.

Can I get the annual fee waived?

Chase does not waive the annual fee for existing cardholders, but you can cancel and reapply later if you want to avoid paying it for a year. Some people close the card after using the travel credit and reapply the following year to get another credit. Chase may deny a reapplication if you've closed and reopened the card too frequently.

What credit score do I need to be approved?

Chase typically approves applicants with a credit score of 670 or higher, though approval is not may provide at any score. Your income, employment history, and existing debts also matter. If you're denied, you can call the reconsideration line within 30 days to ask Chase to review your process again.

Do the points expire?

No, Chase Sapphire points do not expire as long as your account remains open. If you close the card, you have a limited time to redeem remaining points — typically 30 to 60 days, depending on your account status. After that, unused points are forfeited.