Is the Chase Sapphire Preferred Card Worth its $95 Annual Fee? | Credit Cards

The Chase Sapphire Preferred Card offers numerous perks for people who like to travel. These perks include travel protections, flexible point redemptions and up to $50 in statement credits to cover eligible hotel spending each year.

However, people often wonder if the card is worth its $95 annual fee. Learn more about the Chase Sapphire Preferred Card’s key features, who can benefit from having this card and alternatives you should consider before applying.

While this travel credit card features numerous perks, it pays to focus on the key benefits to help you decide if the Chase Sapphire Preferred Card is worth it.

When you open a Chase Sapphire Preferred Card, you may earn a sign-up bonus of 60,000 points after spending $4,000 within three months. These points are worth $750 in travel booked through Chase Ultimate Rewards or $600 in cash back.

“The welcome bonus is easily the top benefit of the CSP for the first year that you have it,” says Ross Jones, a travel blogger at WeGetToTravel.com who uses travel rewards to travel with his wife.

You’ll receive up to $50 in statement credits each account anniversary year to cover hotels booked through Chase Ultimate Rewards. These credits cover more than 50% of your annual fee, which makes it easier for Chase Sapphire Preferred cardholders to justify its annual fee.

This card offers numerous ways to earn bonus Ultimate Rewards points on your spending. When you book travel through Chase, you’ll earn five points per dollar (excluding hotel purchases that qualify for the $50 annual credit). The card also offers two points per dollar on other travel and three points per dollar on dining, online grocery purchases and select streaming services. All other purchases earn one point per dollar.

Cardholders can book flights, hotels, rental cars, activities and other travel through the Chase Ultimate Rewards travel portal. When you use points to pay for travel through the portal, you’ll get 1.25 cents per point, which is 25% more value than you get redeeming for cash. For example, a $300 flight would cost 24,000 Chase Ultimate Rewards points.

Ultimate Rewards points also transfer to 14 airline and hotel loyalty programs on a 1-to-1 basis. These partners include Air Canada Aeroplan, Emirates Skywards, Southwest Rapid Rewards, United MileagePlus, Marriott Bonvoy and World of Hyatt. Transferred points combine with your existing loyalty program balances so you can book award flights and hotel rooms. Depending on how you use your points, it’s possible to get even higher value through award redemptions.

“Earning transferrable points is the best benefit because it allows for flexibility in an ever-changing miles and points environment,” says John Perri, a travel advisor and travel blogger at JohnTheWanderer.com.

When you renew your card, you’ll receive a points bonus worth 10% of your annual purchases. If you spent $24,000 during the year, Chase will give you 2,400 bonus points on top of the rewards earned throughout the year.

When you book travel with your Chase Sapphire Preferred Card, you’ll be covered with travel protections. These protections include trip cancellation and interruption insurance, primary rental car protection, baggage delay insurance and trip delay reimbursement. Additionally, eligible purchases are covered up to $500 each against damage or theft for 120 days and receive an extended warranty of one extra year.

The Chase Sapphire Preferred Card is an excellent choice for some travelers, but it isn’t the best travel credit card for everyone. Here are a few alternatives that may make more sense based on your budget, spending patterns and travel preferences.

Chase Sapphire Reserve is the premium version of the Preferred card. While it has a $550 annual fee, it includes $1,200 in benefits from partners such as Lyft and Instacart. The card also comes with a $300 annual travel credit, complimentary airport lounge access and reimbursement for the Global Entry, TSA PreCheck or Nexus application fee once every four years.

For people who want to earn rewards without paying an annual fee, Chase Freedom Unlimited is a viable option. It earns 5% cash back on travel purchased through Chase, 3% cash back on dining and drugstores and 1.5% cash back on all other purchases. Plus, you’ll get an extra 1.5% cash back across all categories on up to $20,000 spent in your first year. New customers can also use a 0% introductory annual percentage rate offer on purchases and balance transfers for 15 months.

The AmEx Platinum Card has a $695 annual fee to match its premium perks. New cardholders can earn 80,000 Membership Rewards points after spending $6,000 within six months. Cardholders can also get credits including $200 to cover eligible hotel expenses, $240 for eligible digital entertainment, $200 for Uber charges and $200 for airline fees.

Plus, you’ll earn five points per dollar on flights booked through AmEx Travel or directly with the airlines, up to $500,000 spent each calendar year. You can also earn five points per dollar on prepaid hotels booked through AmEx Travel. All other purchases earn one point per dollar. Travel benefits include access to the participating airport lounges and the ability to transfer points to 21 airline and hotel partners.

For rates and fees of The Platinum Card® from American Express, please click here.

For luxury travelers who want to save money, the Capital One Venture X card offers a lower annual fee than other premium travel credit cards. Its $395 annual fee is effectively offset by the up to $300 in statement credits to cover eligible travel each year and 10,000 bonus miles when you renew. The card includes a sign-up bonus of 75,000 miles after you spend $4,000 within three months of opening an account. Plus, it earns an unlimited 2 miles per dollar on everyday purchases and up to 10 miles per dollar when booking travel through Capital One Travel. Cardholders also receive complimentary entrance to participating airport lounges.

The Chase Sapphire Preferred Card offers many valuable features and benefits, but when is it worth paying the $95 annual fee? For people who travel on a regular basis, its protections provide valuable peace of mind. Just the savings from not paying separately for a collision damage waiver when you rent a car can recoup the annual fee.

People who book travel through Chase will also find this card worth its annual fee. Not only can they earn five points per dollar on most of those purchases, but they’ll also receive 25% more value from their points when using them to cover their reservations.

Also, people eligible for the sign-up bonus can easily justify the annual fee. When you meet the spending requirements, you’ll earn points that can be worth more than $600. That initial sign-up bonus can cover the expense of the annual fee for multiple years.