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This article was originally published in August 2023 and reflects the author’s financial decisions during that time. The rest of the article has since been updated. look Bankrate reviews For current offers.
I am a flight hacker and frequent traveler and always want a good credit card transaction. Last year, I set my sights on a round-trip flight to Istanbul, so I started looking for a card that would cover most of the cost of my trip.
It didn’t take long to realize that the card I was looking for was a Chase Sapphire priority card, especially given the impressive welcome bonus of the time.
Over a year later, it not only welcomed my travel bonus, but the card reward rate was perfect for almost all of my daily expenses. Add that unique 10% anniversary bonus and $50 per year hotel credits (via the Chase Travel℠ portal). It’s easy to see why it has become one of my favorite reward credit cards. Here are some reasons why I like this card:
It offers a great welcome bonus
When I applied, Chase Sapphire Preferred was offering 100,000 bonus points after spending $5,000 in the first three months I signed up.
I was thinking about getting Chase Sapphire Reserve® Instead, however, the $550 annual fee was too expensive for me. Plus, I got a much more welcome bonus with the sapphire I would like than the sapphire. Bankrate focuses on current offers of 60,000 Ultimate Rewards Points for $750 (if used to book a Chase Travel Portal) and up to $1,200 if you make the most of Chase Transfer Partners.
To get the welcome bonus, I had to spend a minimum of $5,000 within the first three months. In my case, I usually spend around $800 on food and groceries every month, so I put all of these expenses on my card. This was a wise choice as I earned triple points on meals (including eligible takeout and delivery) and online grocery purchases (excluding Target, Walmart and wholesale clubs). You will also win cards:
- 5x points on travel purchased Chase Travel
- 3x points for selected streaming services
- Double points on other typical trips
- 1x points on everything else
There are benefits such as foreign transaction fees
I live an international life and divide my time between Canada, the US and Istanbul. I travel to Asia frequently too. I always find myself using credit cards overseas. That’s why I always travel with a card that doesn’t charge foreign transaction fees and the sapphire fits the bill. Other benefits that sapphire likes, such as travel, purchase protection, and the benefits of Doordash and Lyft partners, make them more convenient and enjoyable.
Easy transfer of points to the loyalty program
One of the things I like most about Sapphire’s preference is that you can transfer points to other loyalty programs at a 1:1 rate, such as Chase’s partner airlines and hotel chains. This will allow you to get more value from your points.
Redeeming points through the Chase Altimate Rewards program using the Sapphire Preferred Card is 1.25 cents.
However, transferring it to a partner airline’s loyalty program often gives you more. For example, you can transfer points to MileagePlus on United Airlines and use them to redeem award flights directly through the MileagePlus program. When I do that, I usually get a value of 2 cents or more per point. In line with bank rate estimates, Chase Ultimate Rewards points are worth about 2 cents on average when used with a suitable transfer partner.
In my case, I booked a business class round-trip trip from Houston to Istanbul. The cheapest cash flight I could find was $2,300, but I only spent 69,000 miles (converted from the ultimate reward points of 69,000), plus the tax and fees were $81.65. This means that my points are worth more than 3 cents each and my 100,000 points welcome bonus is worth more than $3,000. I live for this type of transaction.
Offers 10% bonus per year
This advantage has led to 10% of total spending returning to each account anniversary. If you spend $10,000 on your card throughout the year, you will earn 1,000 points. This is a 10% bonus that you can’t earn on other cards, and is another perk that helps Chase Sapphire prefer a salary for itself.
Conclusion
With just a welcome bonus, sapphire is worth the annual fee. I accumulated over 20,000 points from my daily spending last year, and even more points I gained from a few large purchases.
Chase Sapphire Preferred doesn’t offer premium travel perks like Airport Lounge Access, but the money you save with your card easily offsets these small costs. As I prepare to spend the rest of the points I already have, waiting for a 10% point bonus each year, waiting for the rest of the points I have, I can’t help but feel that this is one of the smartest financial moves I’ve made in a while.
