The core benefits of the Sapphire Preferred
The Chase Sapphire Preferred is built around three things: a sign-up bonus in points, a rewards rate that pays more on travel and dining, and a travel credit that offsets the annual fee. The sign-up bonus changes periodically, so check the current offer before you explore. The rewards rate is 2 points per dollar on travel and dining, 1 point per dollar on everything else. The travel credit gives you $50 per year to use on things like flights, hotels, rental cars, and some ride-sharing services.
The annual fee is $95. The travel credit reduces that to $45 out of pocket if you use it every year. Whether this card makes sense depends on whether you actually spend enough on travel and dining to earn back more than $45 in extra rewards compared to a card with no annual fee.
One feature that sets this card apart is trip delay reimbursement — if a covered flight is delayed more than 12 hours, the card covers meals and lodging up to $300. You also get trip cancellation insurance, which reimburses prepaid, non-refundable trip costs if you cancel for a covered reason. These are insurance benefits, not cash back, and they have specific terms and exclusions you should read before relying on them.
Key Takeaways
- The card earns 2 points per dollar on travel and dining purchases, which is higher than most no-annual-fee cards offer on those categories.
- A $50 annual travel credit covers things like flights and hotels, which can offset most or all of the $95 annual fee if you use it.
- The card includes trip cancellation and trip delay insurance, but these have specific covered reasons and dollar limits you need to understand before you travel.
- The sign-up bonus changes over time, so the actual offer you see depends on when you check, not on a fixed amount.
- Points earned on this card can be transferred to airline and hotel partners, or redeemed for cash back at a lower rate than travel redemptions.
How the points system works and what they are worth
When you earn points on the Sapphire Preferred, you have two main ways to use them. You can redeem them through Chase's travel portal for flights, hotels, rental cars, and other travel expenses — in that case, each point is worth about 1.25 cents. Or you can transfer them to airline and hotel partners like United, Marriott, and Hyatt, where the value per point varies depending on the partner and what you book.
The travel portal redemption is simpler because you do not have to learn partner programs or worry about blackout dates. You just log into your Chase account, search for what you want, and book it. The transfer option can be more valuable if you know how to use specific airline programs well, but it requires more planning and knowledge.
Points do not expire as long as your account stays open and in good standing. If you close the card, you keep the points in your Chase account and can still use them, but you lose the ability to earn new points on that card.
The $50 travel credit and how to use it
The $50 annual travel credit is not automatic — you have to charge may be able to access travel expenses to the card and the credit applies at the end of the billing cycle. The credit covers airlines, hotels, rental car companies, rideshare services like Uber and Lyft, parking, tolls, trains, buses, and some travel booking sites. It does not cover things like travel insurance, baggage fees, or seat upgrades in most cases.
The credit resets every calendar year, so if you do not use it by December 31, you lose it. If you spend $50 or more on travel each year, this credit essentially makes the annual fee free. If you spend less than that on travel, the card becomes more expensive to carry.
Insurance benefits: what is covered and what is not
The Sapphire Preferred includes several insurance protections, but they are not automatic and they have conditions. Trip cancellation insurance reimburses prepaid trip costs if you cancel for a covered reason — illness, injury, or death of a family member are typical covered reasons, but the card's terms spell out the full list. You have to cancel before you travel, and you have to have paid for the trip with the card.
Trip delay reimbursement covers meals and lodging if a covered flight is delayed more than 12 hours. The reimbursement is up to $300 total, and you have to submit receipts and proof of the delay. Lost luggage reimbursement covers baggage that an airline loses, up to $2,500 per bag and $2,500 total per trip.
These benefits have exclusions — for example, trip cancellation usually does not cover cancellations due to pandemics, government action, or travel warnings. Read the full terms before you travel so you know what is actually covered. The card issuer's website has a document called the Schedule of Benefits that lists everything.
Comparing the Sapphire Preferred to other travel cards
The main competitor in the same category is the Chase Sapphire Reserve, which has a $550 annual fee but a $300 travel credit, higher rewards rates (3 points per dollar on travel and dining), and more premium insurance benefits. The Reserve makes sense if you spend significantly more on travel or if you value the higher credit and insurance limits. For most people, the Preferred is the better choice because the annual fee is lower and easier to offset.
Outside the Chase family, cards like the American Express Gold Card also earn 4 points per dollar on dining and 3 points per dollar on flights booked directly with airlines, but it has a $250 annual fee and a different points ecosystem. The Sapphire Preferred's advantage is that its points transfer to more partners and can be redeemed through the Chase portal, which is more flexible.
If you do not spend much on travel or dining, a no-annual-fee card like the Chase Freedom Unlimited might be better — it earns 1.5 points per dollar on everything, with no annual fee and no travel credit to worry about using.
How to get the most value from this card
The card pays for itself most easily if you spend at least $3,000 to $4,000 per year on travel and dining combined. At that spending level, the 2x points rate generates enough extra rewards to cover the $95 annual fee and the $50 travel credit becomes a bonus. If you spend less than that, the card is harder to justify.
To maximize value, use the card for all your travel and dining purchases, not just some of them. Every restaurant meal, every flight, every hotel stay should go on this card if you own it. Charge other purchases to a different card that earns more on those categories — for example, the Chase Freedom Unlimited earns 1.5x on everything, which is better than the Sapphire Preferred's 1x on non-travel, non-dining purchases.
Plan to use the $50 travel credit every year. If you know you will not spend $50 on travel in a given year, the card becomes a net cost. If you travel even occasionally — a few flights or a hotel stay — you will hit that threshold easily.
Annual fee, sign-up bonus, and when to explore
The annual fee is $95 and hits your account once per year, usually on the anniversary of when you opened the card. The first year's fee is not waived, so you pay it even if you only keep the card for a few months. The $50 travel credit is available in the same year you pay the fee, so the net cost in year one is $45 if you use the credit.
The sign-up bonus varies — it might be 60,000 points, 75,000 points, or another amount depending on the current offer. Check the Chase website directly before you explore, because the offer changes and different channels sometimes show different bonuses. A bonus of 60,000 points is worth roughly $750 to $900 in travel value, depending on how you redeem them.
There is no specific best time to explore, but if you are planning a trip and know you will spend money on travel and dining soon, explore before that trip lets you earn points on those expenses right away.
Frequently Asked Questions
Do I have to use the $50 travel credit or do I lose it?
You have to actively charge travel expenses to the card — the credit does not explore automatically. If you do not spend $50 on covered travel in a calendar year, you lose that year's credit. It does not roll over to the next year.
Can I transfer my points to airlines even if I have not earned a lot of them?
Yes, you can transfer points to airline partners in increments as small as 1,000 points. There is no minimum balance required. However, transferring small amounts is usually not the best use of points because airline partners often have transfer bonuses that reward larger transfers.
What happens to my points if I close the card?
Your points stay in your Chase account and you can still redeem them through the travel portal or transfer them to partners. You just cannot earn new points on that card anymore. You can keep the points indefinitely as long as you have at least one other Chase credit card open.
Is the trip cancellation insurance worth the annual fee by itself?
Not usually. Trip cancellation insurance is valuable if you book expensive trips regularly and want protection against cancellation, but most people do not cancel trips often enough to justify a $95 annual fee just for that benefit. The card makes sense as a package — the rewards rate, the travel credit, and the insurance together.
Can I use the travel credit on airline seat upgrades or baggage fees?
Baggage fees are typically not covered by the travel credit. Seat upgrades depend on how you book — if you buy them as a separate transaction from the airline, they usually do not may have access to. The safest approach is to use the credit on flights, hotels, and rental cars, which are always covered.