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.
Who Qualifies and How to Position Yourself
Most approved Preferred applicants have a FICO score of 690 or higher, with at least two years of credit history. Chase also enforces its 5/24 rule, meaning you generally cannot have opened five or more cards from any issuer in the past 24 months.
If your credit file is thin or your score is in the 600s, the Preferred is risky. A denial puts a hard inquiry on your report without giving you the card.
The Self Visa® Credit Card is a common first card for people who want to qualify for Chase products later. The Self Visa is a secured Visa with a high approval rate, reports to all three bureaus, and charges $0 intro annual fee for new customers in year one, then $25 after.
Most users see strong score gains within six to twelve months of on time payments. That puts a card like the Preferred well within reach.
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
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.
