The Chase Sapphire Preferred® Card brings a lot to the table, especially in terms of travel benefits. Throw in the fact that the annual fee is $0 for the first year, then $95 and it might be pretty tempting to snag this card without weighing the pros and cons.
When the $95 annual fee kicks in at the end of the introductory year, will you earn enough benefits to make the card worth the fee? Read on to see if the Chase Sapphire Preferred® Card will give more than it takes after the first year.
The annual fee is worth it if you:
- Travel often. You’ll receive 2X Chase Ultimate Rewards® points for every $1 spent on traveling and dining at restaurants.
- Travel internationally. If you use the Chase Sapphire Preferred® Card when you travel outside the U.S., there is no foreign transaction fee applied.
- Plan to use the card for everyday living. Use the card for gasoline, bills or new shoes for the kids and earn points. In addition to giving you 2X points for each dollar spent on travel and dining, the card also awards one point for every dollar spent on everything else.
- Enjoy online shopping. Receive extra rewards when ordering from qualified stores, such as Apple, Nordstrom and Starbucks, through the Chase Ultimate Rewards shopping portal.
The annual fee is not worth it if you:
- Won’t use the Chase Sapphire Preferred® Card much. If the credit card will stay in your wallet more than being used to make purchases, it won’t be as beneficial to you as you won’t earn any rewards to offset the fee.
- Want more flexible booking options. Travel rewards can be redeemed only through the limited options available in the card’s travel portal, and so you may not be able to book through whichever travel site offers the best deal.
Still not sure?
Earning points from every trip, every dinner and every purchase charged to the card is a nice benefit. The more you use the card, the more you earn. The Chase Sapphire Preferred® Card is perfect for those globetrotters who use their card instead of cash.
Those who don’t travel as often or who don’t plan on using the card regularly probably won’t gain much from it. It is fair to assume that low spending charges on the card would not offset the $95 annual fee.
Want to see if the Chase Sapphire Preferred® Card fits your lifestyle? Use our calculator below to see how much you could earn each year, and if the annual fee of $0 for the first year, then $95 is worth it.
How to maximize your rewardsYou want a travel credit card that prioritizes what’s important to you. Here are our picks for the best travel credit cards of 2018, including those best for:
- Airline miles and a large bonus: Chase Sapphire Preferred® Card (Earn 50,000 bonus points after you spend $4,000 on purchases in the first 3 months from account opening. That's $625 toward travel when you redeem through Chase Ultimate Rewards®).
- Flat-rate travel rewards: Capital One® Venture® Rewards Credit Card (Earn unlimited 2 miles per dollar on every purchase).
- Premium travel rewards: Chase Sapphire Reserve® (Get 3 points per dollar on travel and dining at restaurants worldwide and 1 point per dollar on all other purchases).
- No annual fee: Bank of America® Travel Rewards credit card (Earn unlimited 1.5 points per dollar spent on all purchases, with no annual fee).
- Luxury perks: The Platinum Card® from American Express (Get 5 points per dollar on flights booked directly with airlines or through American Express Travel, plus get access to the Global Lounge Collection). Terms Apply.
Planning a trip? Check out these articles for more inspiration and advice:
5 underrated reasons why you need a Chase Sapphire Preferred
NerdWallet’s best Chase credit cards of 2018
How to get started with frequent flyer programs