Ask any points enthusiast which credit card to get first, and the Chase Sapphire Preferred shows up almost every time. The $95 annual fee is reasonable, the rewards are strong, and the Ultimate Rewards points behind it are some of the most flexible in the industry.
The Preferred is often called the gateway to the Chase ecosystem. It unlocks transfer partners like Hyatt, United, and Air Canada Aeroplan, which can stretch your points far beyond their cash back value.
This guide walks through every major benefit, the real value of each, and how the Preferred compares to alternatives like the Sapphire Reserve and Amex Gold. If you are torn between Chase and Amex's mid-tier flagships, our Chase Sapphire Preferred vs Amex Gold comparison walks through which card wins on dining, travel, and grocery spend.
The Earning Structure
The Preferred earns at four different rates depending on what you buy.
- 5x points on travel booked through Chase Travel
- 3x on dining, online groceries (excluding Walmart and Target), and select streaming
- 2x on all other travel
- 1x on everything else
The 5x rate on Chase Travel is the highest fixed earn rate on travel anywhere in the market. That category alone makes the card attractive for people who book through Chase.
Bonus dining categories
The 3x dining rate covers restaurants, takeout, and delivery worldwide. Online grocery delivery from services like Instacart and grocer apps also counts. That makes the Preferred surprisingly useful for everyday spending, not just travel. If your spending is heavier on restaurants and US supermarkets than on travel itself, our full breakdown of the Amex Gold Card's benefits shows how the Gold's 4x dining and grocery categories compare against the Preferred's 3x structure.
The $50 Hotel Credit
The Preferred includes a $50 annual hotel credit, but it only applies to hotels booked through Chase Travel. The credit posts as a statement credit on your first qualifying hotel stay each cardmember year.
That brings the effective annual fee down to $45, assuming you book at least one hotel through Chase per year. For most travelers, that is an easy ask.
Ultimate Rewards Are the Real Prize
Points earned with the Preferred are worth 1.25 cents each when redeemed through Chase Travel. That is a 25 percent bonus over the baseline 1 cent redemption.
The better play is usually transferring to partners. Chase has 14 transfer partners, including:
- World of Hyatt
- United MileagePlus
- Air Canada Aeroplan
- Southwest Rapid Rewards
- British Airways Avios
- Virgin Atlantic Flying Club
- Marriott Bonvoy
- IHG One Rewards
Hyatt is the standout for hotels. A free night at a Park Hyatt can cost 30,000 points but retail for $700 or more.
Insurance and Protections
The Preferred punches above its weight on insurance for a $95 card.
Trip cancellation and interruption
Reimburses up to $10,000 per person and $20,000 per trip for prepaid, non refundable expenses if your trip is canceled or cut short for covered reasons like illness or severe weather.
Primary rental car insurance
Decline the rental company's collision damage waiver and rely on Chase coverage instead. This is rare on cards under $100 a year. The coverage is primary in the United States and many other countries.
Trip delay reimbursement
Kicks in after a 12 hour delay or an overnight stay. Reimburses up to $500 per ticket for meals, lodging, and essentials.
Purchase protection and extended warranty
Covers new purchases against damage or theft for 120 days, up to $500 per claim. Extends manufacturer warranties of three years or less by one year.
No Foreign Transaction Fees
The Preferred is a World Elite Mastercard with zero foreign transaction fees. On a two week European trip with $3,000 in charges, that saves $90 compared to a card that charges 3 percent.
Mastercard acceptance is also nearly universal, which makes the Preferred a more reliable abroad option than Amex.
A Different Kind of Premium Card to Consider
If you are weighing the Sapphire Preferred against premium-tier alternatives, the Robinhood Gold Card is worth a look. It pays a flat 3% cash back on every purchase with no rotating categories and no spending caps, plus 5% on travel booked through Robinhood's portal. There is no annual fee on the card itself, but it requires Robinhood Gold membership at $5 per month or $50 per year. The card is invite-only and tied to Gold membership, so the first step is opening a Robinhood account and subscribing to Gold to join the waitlist. Rewards post to your Robinhood brokerage account by default and can be reinvested in stocks or held as cash.
Robinhood
Robinhood
Robinhood is a trading platform that brings stocks, ETFs, options, futures, prediction markets, crypto, and retirement accounts together in one app.
Standout feature
One platform for stocks, ETFs, options, futures, prediction markets, and crypto
Fees
$0 commission on stocks, ETFs, and options.
Pros
Zero-commission trading on stocks, ETFs, and options
Cons
Best perks (high APY, lower margin rates) require Gold subscription ($5/month)
The 60,000 Point Sign Up Offer
Chase has historically offered 60,000 points after spending $4,000 in the first three months. That bonus alone is worth $750 through Chase Travel or significantly more through partner transfers.
Sign up offers shift, so check the current promo before applying. Public offers have ranged from 60,000 to 80,000 points in recent years.
The minimum spend works out to about $1,333 per month for three months. Most households can hit that through normal spending without overstretching.
Strengths and Weaknesses
Strengths
- 5x on travel booked through Chase, the highest fixed earn rate available
- Excellent insurance for a $95 card, including primary rental coverage
- Access to 14 transfer partners with strong value, especially Hyatt
- $50 hotel credit and 25 percent bonus on Chase Travel redemptions
- No foreign transaction fees
Weaknesses
- No airport lounge access
- No travel credit beyond the $50 hotel credit
- 5/24 rule blocks many new card applicants
- 2x on non Chase travel is lower than many travel cards
How to Qualify If You Are Not There Yet
The Preferred typically needs a FICO score around 690 or higher, so if your score is not there, the smartest first step is to know exactly where you stand. Creditship gives you free credit monitoring plus concrete advice on the moves that will lift your score the fastest, so you can track your progress toward a Preferred approval and graduate to a premium card when the numbers line up.
Creditship
Creditship
Get free credit monitoring and concrete advice how to improve your credit from Creditship AI.
Standout feature
AI Credit Coach. AI analyzes your credit report in depth and gives you tailored, actionable steps to raise your score.
Fees
Free
Pros
Free credit report access plus monitoring and alerts
Cons
No credit repair feature
If you have limited credit history, you need a few months of on-time payments on your report before a card like the Preferred will approve you. The Self Visa® is a secured credit-builder card backed by your own money, with high approval and a $0 intro annual fee for the first year, which makes it a straightforward way to build the payment history a premium issuer wants to see.
And if the Preferred denies you because of the 5/24 rule or a thin file, you do not have to settle for a card with no rewards while you wait. The Aspire Mastercard is a cash-back rewards card you can prequalify for up to $1,000 with no security deposit, so you can keep earning on everyday spending and strengthen your profile for a future Preferred application.
Aspire® Cash Back Rewards Mastercard
Aspire® Cash Back Rewards Mastercard
Aspire® Cash Back Rewards Mastercard. Prequalify* For Up To $1000 Credit Limit. No security deposit. Packed with great benefits, it’s designed to give you more flexibility—and purchasing power—along with up to 3% cash back rewards!** Good anywhere Mastercard is accepted, it’s the go-to card for any lifestyle.
Standout feature
Up to 3% cashback rewards
Fees
$49 to $175; after that $0 to $49 annually; - $60 to $159 annually billed at $5 to $12.50 per month after the first year.
Pros
No Deposit Required. Prequalify for up to $1000 credit limit
Cons
High APR. 25.74% to 36%, based on your creditworthiness.
Frequently Asked Questions
Is the Chase Sapphire Preferred worth the $95 fee?
For anyone who travels even occasionally and dines out regularly, yes. The $50 hotel credit, 5x on Chase Travel bookings, primary rental car insurance, and access to Ultimate Rewards transfer partners typically deliver $300 to $500 in value annually. The card is widely considered the best entry point to premium travel rewards.
What credit score do I need for the Chase Sapphire Preferred?
Most approved applicants have a FICO score of 690 or higher. Chase also enforces the 5/24 rule, so applicants who have opened five or more credit cards from any issuer in the past 24 months are typically denied automatically.
Can I transfer Chase points to Hyatt?
Yes. Chase Ultimate Rewards points transfer to World of Hyatt at a 1:1 ratio. Hyatt redemptions often deliver 2 cents or more per point, which makes them the most valuable transfer partner in the Chase ecosystem.
Should I get the Preferred or the Reserve?
Get the Preferred if you travel one to three times a year and want low cost access to Ultimate Rewards. Get the Reserve if you travel three or more times annually, use lounges, and spend heavily on dining and travel. Our complete guide to the Chase Sapphire Reserve's benefits breaks down the $300 travel credit, Priority Pass access, and Sapphire Lounge network that justify the $455 premium over the Preferred.
