Is the Chase Sapphire Preferred card still worth it in 2025?

Yahoo

13-04-2025

The Chase Sapphire Preferred® Card is well worth it for people who want a low-maintenance card for earning and redeeming travel rewards. We think it's one of the best travel credit cards for most people because of its excellent balance between valuable benefits and a low annual fee.
Each situation is different, but there's a simple way to determine if you get enough value from a rewards card to make it worth paying its annual fee: Calculate the value of the card benefits and see if they offset the annual membership cost.
With the Chase Sapphire Preferred, you need to see if its benefits can offset the $95 annual fee each year. There are three important factors to consider when making these calculations:
You don't need to calculate the value of every card benefit, just the benefits you plan to use. Unused benefits do nothing for you, so don't worry about them.
Certain card benefits, such as travel and purchase coverage, aren't always easy to quantify, so use your best judgment.
You need to get enough value from benefits to more than offset the annual fee. If you only get enough value to offset the annual fee, is the card actually worth keeping?Plenty of Chase Sapphire Preferred benefits, exist, but we think these are some of the best for offsetting the annual fee.
The Chase Sapphire Preferred welcome bonus can change depending on whether there's a limited-time offer available. However, it often has a 60,000-point bonus, so we'll use that as our example.
Sixty thousand Chase Ultimate Rewards bonus points are worth at least $750 if redeemed for travel through Chase Travel℠. That's nearly eight years of covering the annual fee with just the welcome bonus offer.The Chase Sapphire Preferred has this rewards rate:
5x points on travel purchased through Chase Travel℠
3x points on dining, select streaming services, and online groceries
2x points on all other travel purchases
1x points on all other purchases
You can adjust this for your own spending, but let's say this is your spending in applicable categories for the year:
$5,000 on general travel purchases = 10,000 points
$10,000 on dining, select streaming services, and online groceries = 30,000 points
Forty thousand points are worth $500 toward travel in the Chase Travel portal. That's enough value to cover the card's annual fee for over five years. You could also offset the annual fee each year by earning 7,600 points, which are worth $95 toward travel with Chase Travel.Foreign transaction fees can be a nightmare if you frequently travel abroad because they add on a charge of about 3% for any purchases made from foreign merchants. If you spend $1,000 on purchases while in another country, that would be $30 in extra fees. If you have a credit card with no foreign transaction fees, that's $30 saved.
Cardholders can purchase hotel stays through Chase Travel and earn up to $50 in statement credits each account anniversary year. This benefit is easy to use if it fits your annual travel schedule. If it does, that's an immediate $50 toward offsetting the annual fee.
Your points are automatically worth 25% more if you redeem them toward travel using Chase Travel. This is a great benefit, especially if you have multiple Chase credit cards that earn Ultimate Rewards points. You can move points from other eligible cards to your Sapphire Preferred and they're immediately worth 25% more.
Transfer partners: You can transfer points to over 12 travel partners, including Air Canada, JetBlue, Southwest Airlines, United, Marriott Bonvoy, and World of Hyatt. Transferring points to an airline or hotel partner is often one of the best ways to get the most value from your points.
Visa card network: The Sapphire Preferred uses the Visa card network, which is accepted in over 200 countries and territories worldwide.
Travel insurance: The Sapphire Preferred is known for its travel protections and coverage, including primary rental car insurance, baggage delay insurance, and trip cancellation or interruption insurance.
Purchase protection: Eligible new purchases are protected against damage and theft and can have qualifying manufacturer's warranties extended by one year.
Travelers: This is a travel credit card, so it will benefit travelers the most. That doesn't mean you have to be a frequent traveler, as occasional travelers can also benefit from the Sapphire Preferred and its perks, including travel and purchase coverage.
Diners and people who shop for groceries online: The bonus categories are especially rewarding for people who frequently eat out and make online grocery purchases. Enough spending in these categories can supply a steady stream of valuable points.
Chase customers: Having other Chase cards that earn Ultimate Rewards lets you combine points between cards and get more value from them.
While we think the Chase Sapphire Preferred is an excellent option for many situations, we know it's not always an ideal fit. A cash-back credit card likely makes more sense if you're not interested in travel redemptions.
You can choose from various no-annual-fee credit cards that offer excellent benefits without the annual cost, such as the Chase Freedom Unlimited®.
The Chase Sapphire Reserve® and Capital One Venture X Rewards Credit Card provide benefits you won't find on the Sapphire Preferred, including airport lounge access and better travel credits.
The Sapphire Preferred has a great rewards rate, but it can't match the everyday earning potential of cards like the Blue Cash Preferred® Card from American Express.
The Chase Sapphire Preferred typically requires a good or excellent credit score to qualify. If you don't have good credit, consider using a secured credit card to build or rebuild your credit.
The Chase Sapphire Preferred makes sense for anyone who wants to earn and redeem travel rewards with a low-annual-fee card. It's an excellent beginner travel card, but its low maintenance and extensive travel insurance benefits can also fit frequent travelers' lifestyles.
There is no official Chase Sapphire Preferred credit limit, but reports suggest $5,000 is the minimum limit if you're approved.
The Chase Sapphire Preferred has a $95 annual fee.
Chase Sapphire Preferred benefits include:
A generous welcome offer
An elevated rewards rate
No foreign transaction fees
Transfer partners
A 25% bonus to travel redemptions made through Chase Travel
Up to $50 in annual statement credits for hotel stays booked through Chase Travel
Travel and purchase coverage
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