Chase Sapphire Preferred Card Review–60,000 Point Signup Bonus ($750 value)

The Chase Sapphire Preferred® Card is one of the most valuable travel rewards credit cards available today. It offers a signup bonus worth up to $750, up to 5x points on select purchases, and a 25% bonus when points are used to book travel through Chase. In this review we'll dive into the details of this card, compare it to alternatives, and explore how to maximize the benefits of the card.

Chase Sapphire Preferred® Card Snapshot

Pros & Cons

As regular readers know, I save and invest all of my credit card rewards. I've been doing this for about two years, and my Credit Card Financial Freedom Fund as I like to call it is up to $32,391.95.

My strategy includes a few of the best cash back credit cards as well as the Chase Sapphire Reserve®. That card comes with a hefty annual fee of $550. For those who want a great travel card without a monster annual fee, the Chase Sapphire Preferred® Card is this answer.

Here's what you need to know.

Rewards Program

The rewards program includes both bonus points and points earned on everyday purchases.

Bonus Points

The card gets a lot of attention for its 60,000 bonus points. Here’s how it works. If you spend $4,000 within your first of opening your account, Chase will give you 60,000 rewards points.

Normally these points would be worth 1 cent each. If you use the points for travel through Chase Ultimate Rewards, however, you get a 25% bonus. This effectively increases the value of the 60,000 points to $750. This is one of the largest signup bonuses available on any credit card.

Now to the Fine Print. This bonus is not available to those who have received a bonus from a Sapphire card in the past 48 months. Here's the fine print from Chase:

This product is available to you if you do not have any Sapphire card and have not received a new cardmember bonus for any Sapphire card in the past 48 months.

Everyday Points

In addition to the bonus points, you’ll earn up to 5x points for every dollar charged to the card. Here's the breakdown:

• 5x points on travel purchased through Chase Ultimate Rewards
• 3x points on dining
• 2x points on travel not purchased through Chase
• 1x point on all other purchases

There are no reward caps.

Redeeming Points

While there are many ways to use Chase Ultimate Rewards points, there are only two “good” ways to redeem them:

• Booking travel through Chase Ultimate Rewards
• Transferring points to travel partners

Booking Travel Through Chase

You can of course redeem points for travel purchased with the Chase Sapphire Preferred® Card . As noted above, travel purchased through Chase Ultimate Rewards qualifies for a 25% bonus, thus extending the value of the points.

Here’s how Chase describes this discount:

Each point you redeem for travel booked through Ultimate Rewards is worth $.0125 (one and a quarter cents), which means that 100 points is worth $1.25 in redemption value. This is like getting a 25% discount on travel you get with points when compared to the cash price. For example, a $500 airline ticket will only cost you 40,000 points. You would need 50,000 points to get $500 in cash through Ultimate Rewards and 40,000 points is 25% less than 50,000. The cost of travel and comparison of the points price and cash price is based on the rates and fares available through the Ultimate Rewards website and travel center, and may not reflect all rates and fares that are available through other sales channels.

Transferring Points

A big bonus comes in the form of transfers. You can transfer your points at full value to any of these Chase airline or hotel partners:

• Airline Partners
  • Aer Lingus AerClub
  • British Airways Executive Club
  • Emirates Skywards
  • Flying Blue AIR FRANCE KLM
  • Iberia Plus
  • Singapore Airlines KrisFlyer
  • Southwest Airlines Rapid Rewards
  • United Airlines MileagePlus
  • Virgin Atlantic Flying Club
• Hotel Partners
  • IHG Rewards Club
  • Marriott Bonvoy (including Ritz-Carlton)
  • World of Hyatt

Potential Value of Rewards

The value of rewards will of course depend on how the card is used for purchases and how the points are redeemed. Assuming one redeems points for travel through Chase Ultimate Rewards, points are worth $0.0125 each. Based on this valuation, here are some potential rewards values per year.

5x Monthly Purchases	3x	1x	Total Annual Value
$250	$150	$1,000	$405
$500	$250	$1,500	$712.50
$750	$350	$2,000	$1,020
$1,000	$500	$3,000	$1,425
$1,500	$750	$5,000	$2,212.50

Other Perks

The Chase Sapphire Preferred® Card offers several additional benefits:

• Chip-Enabled Security: Enjoy enhanced security and wider acceptance with your chip-enabled card when used at a chip card reader
• $0 Foreign Transaction Fees: Pay no foreign transaction fees when you use your card on purchases made outside of the United States
• 1:1 Point Transfer: Transfer points to participating frequent travel programs at full value. For example, 1,000 Chase Ultimate Rewards points equal 1,000 partner miles/points
• Exclusive Events & Experiences: Access special travel opportunities and exclusive events available to cardmembers.  Explore VIP packages to major culinary, entertainment and sporting events.

Pros & Cons

What we like about the Chase Sapphire Preferred® Card

• 60,000 bonus rewards points for new customers
• Up to 5x points on purchases
• $0 Foreign Transaction Fees
• 25% travel redemption bonus

What could be better

• $95 Annual Fee
• Requires Excellent Credit

Chase Sapphire Preferred vs Reserve

	Sapphire Preferred	Sapphire Reserve
Signup Bonus	60,000	60,000
Signup Bonus Value*	$750	$900
Max Reward Rate	5x on travel booked through Chase	10x on hotels booked through Chase
Annual Travel Credit	$0	$300
Annual Fee	$95	$550
Point Bonus*	25%	50%

Who is the Chase Sapphire Preferred® Card Best for?

The Chase Sapphire Preferred® Card is best for those who travel at least once a year and aren't loyal to specific airline or hotel brands. We do not, however, recommend this card if you plan to use just one credit card. The 1x category covers too many purchases for the average person or family. As such, this card should be carried in conjunction with a 2% cash back or even 1.5% cash back credit card.

Chase Sapphire Preferred® Card Alternatives

For those who travel frequently, a better option may be the Chase Sapphire Reserve. While it comes with a hefty annual fee, the rewards are better, including a 50% bonus on points redeemed for travel through Chase Ultimate Rewards. In addition, its travel credit offsets more than half of the annual fee.

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