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| The Chase Sapphire Preferred® Card |
|---|
| Annual Fee: $95 |
| Welcome Bonus: Check the Current Welcome Offer Here. 60,000 Ultimate Rewards Points after $4,000 Spend in 3 Months |
| Earn: 5X points on travel booked through the Chase Travel Portal |
| Earn: 3X points on restaurants, streaming services, and online groceries (excluding Target, Walmart, and wholesale clubs). Note this also excludes in-store grocery purchases. |
| Earn: 2X points on all other travel purchases outside of the Chase Travel Portal and 1X Ultimate Rewards points on all other spending. |
| Earn: 1 point per dollar spent on all other purchases. |
| Annual Bonus: 10% Ultimate Rewards point bonus annually based on your card spending, earned after you renew and pay your annual fee. |
| Hotel Credit: $50 hotel credit for reservations booked through the Chase travel portal each year |
| Foreign Transaction Fees: None |
If you’re looking for the best beginner travel rewards credit card, look no further than the Chase Sapphire Preferred® Card.
This card offers many benefits that make it perfect for newbies, including points bonuses, no foreign transaction fees, airline/hotel partners, and more.
This blog post will discuss why the Chase Sapphire Preferred is the best travel rewards card for beginners.
Keep reading to learn more!
Heads Up: Only apply for this card if you are sure that you can pay the credit card bill in full on or before the due date. It is never a good idea to pay banks interest fees.
The Benefits of the Chase Sapphire Preferred
1. Generous Welcome Bonus
One of the best things about the Sapphire Preferred is its generous introductory bonus.
New cardholders can earn 60,000 Chase Ultimate Rewards Points after spending $4000 on purchases in the first three months.
2. 25% Bonus When Redeeming At The Chase Travel Portal
Points earned from the Sapphire Preferred can be redeemed in various ways.
First, each Sapphire Preferred point is worth 25% more when booking travel at the Chase travel portal.
Travel rewards credit cards typically have a redemption value of 1 cent per point.
With the 25% bonus, each Sapphire Preferred point will be worth 1.25 cents per point.
Therefore, the 60,000 points earned from the welcome bonus will be worth $750 in travel dollars if you use them to book flights, hotels, or rental cars through the Chase travel portal, making this an excellent way to jump-start your travel rewards earnings.
3. Transfer Points to Chase Travel Partners
Another great benefit of the Chase Sapphire Preferred is the ability to transfer your points to travel partners such as the World of Hyatt hotel brand or United Airlines.
The transfer ratio is 1 Chase Ultimate Reward Point = 1 Travel Partner Point.
Transfers to travel partners are mostly instant. Please check out the image below for the current Chase travel partners.
Transferring points to travel partners is one of my favorite Sapphire Preferred benefits.
It is a perk that I try to maximize whenever the need arises.
With that said, not all travel partners provide outsized value. If you are a beginner, I suggest transferring your Sapphire Preferred points to the transfer partners below.
Please do not transfer points unless you have a redemption in mind, verify that award space is available and bookable, and then book.
a. The World of Hyatt – this program consistently gives the best deals on hotel properties worldwide, some of which are top-notch all-inclusive resorts.
b. Flying Blue – the frequent flier program of Air France and KLM periodically offers discounted award flights to/from Europe and beyond.
c. United – this frequent flier program charges low fees, and its user interface is easy to navigate when performing award searches – perfect for beginners.
4. No Foreign Transaction Fees
Another great perk of the Chase Sapphire Preferred is that it has no foreign transaction fees.
This is a massive benefit for those who travel internationally, as you can use your card without incurring additional fees.
5. Category Bonuses
Each dollar you spend on your Chase Sapphire Preferred will generate 1 Chase Ultimate Rewards Point, except in the following purchases:
5x per dollar
- 5X points on travel booked through the Chase Travel Portal
3x per dollar
- 3X Ultimate Rewards points on restaurants, streaming services, and online groceries (excluding Target, Walmart, and wholesale clubs). Note this also excludes in-store grocery purchases.
2x per dollar
- 2X Ultimate Rewards points on all travel purchases outside the Chase Travel Portal and 1X Ultimate Rewards points on all other spending.
1x per dollar
- 1X Ultimate Rewards point per dollar spent on all other purchases.
6. 10% Points Bonus Every Cardmember Year
Cardmembers will receive bonus points equal to 10% of their total yearly purchases on their account anniversary.
So if you spend $5,000 a year, you’ll earn a bonus of 500 extra points.
This bonus will be reflected in your account after you renew your Sapphire Preferred membership for another year and after paying your annual fee.
7. Primary Rental Car Insurance
Another great benefit of the Sapphire Preferred card is primary rental car insurance coverage.
If you damage the vehicle, you won’t need to file a claim with your automobile insurance since you’ll have primary collision coverage through this credit card.
To get collision and theft coverage in the United States and overseas, you must charge the whole car rental charges to your Sapphire Preferred card and decline the rental company’s insurance.
It is important to remember that this insurance covers only damage to your rental car and does not include liability coverage.
This perk can save you a lot of money, especially if you rent cars frequently and for long periods.
As benefits change periodically, please confirm this benefit with Chase before your trip.
8. Trip Cancellation & Interruption Coverage
The Sapphire Preferred card also provides coverage if you cancel a trip for eligible reasons, such as illness or severe weather, but please verify with Chase for any updates/changes.
With the CSP’s trip cancellation and interruption insurance, you’re eligible for reimbursement of prepaid, non-refundable travel expenses up to $10,000 if your itinerary is cut short for any of the following reasons.
9. Travel Delay Insurance (up to $500)
The Sapphire Preferred card also provides generous complimentary travel delay insurance.
If your travel is unexpectedly delayed for more than 12 hours or requires an overnight stay at an airport hotel, Sapphire Preferred will reimburse the cardholder up to $500 per ticket for expenses such as meals and accommodations.
You must charge your airfare to the Chase Sapphire Preferred card to unlock this benefit.
10. Baggage Delay Insurance
The Sapphire Preferred card covers you if your checked baggage is delayed for more than 6 hours.
A cardholder can receive $100 in reimbursements for daily essential items for up to 5 days.
It is important to note that this valuable perk can only be unlocked by buying a plane ticket using your Chase Sapphire Preferred card.
Please call the number on the back of your card within 20 days of the incident to get in touch with Chase immediately.
Additionally, make sure to get written proof of luggage delay from the airline and keep track of everything you spend during your baggage hold time.
I charge my purchases on my credit card for easier tracking and keep receipts, as they will be required when you file a claim.
Lastly, necessities such as toiletries, clothes, chargers, and other items are all eligible for reimbursement. If you’re wondering whether an item is reimbursable, call the number on the back of your card.
Chase also explicitly states that hearing aids, contact lenses, glasses, and cash are all considered non-reimbursable items, so do not put them in your checked luggage.
11. Purchase Protection
Your Chase Sapphire Preferred card purchases are protected from damage and loss for 120 days after you make an eligible purchase.
You may appeal a claim for credit card reimbursement if something you charged to the card is stolen or damaged within this time frame.
You can apply for reimbursement for lost or damaged items within 90 days of purchase, up to $500 per claim and $50,000 yearly.
Chase’s purchase protection covers many purchases, but some exceptions exist.
These include pre-owned goods, antiques, collectibles, software, motorized vehicles, and commercial purchases.
Also excluded are items that “disappear without any evidence of wrongdoing.”
12. Extended Warranty
With your Sapphire Preferred card, the warranty on every eligible item you purchase will be automatically extended by one additional year from the date the included warranty expires.
You can file a claim for up to $10,000 per item and a maximum of $50,000 in claims per account.
Eligible purchases include standard warranty items that are three years or less and exclude motorized vehicles, software, pre-owned items, and items purchased for resale.
Chase Sapphire Preferred’s Extended Warranty Terms and Conditions change periodically, so please check the most updated protections here.
13. $50 Annual Hotel Benefit
Cardholders can earn a $50 hotel credit for reservations booked through the Chase travel portal each year.
New cardholders will access this credit immediately, while existing cardholders can use it after their next account anniversary.
14. Fraud Protection
Chase promises “Zero Liability Protection” to Sapphire Preferred cardholders. They are guaranteed not to be held responsible for unauthorized charges made on their card.
Moreover, Chase offers 24/7 fraud monitoring to identify any unusual account activity.
Minimum Spending Requirement (MSR)
Aside from being financially disciplined, another requirement to get you closer to traveling on miles and points is being mindful of your new credit card’s “Minimum Spending Requirement“ (MSR).
This is the amount you must charge to your credit card by a specific due date to earn the welcome bonus.
The Chase Sapphire Preferred requires a minimum spending requirement of $4,000, which must be completed within three months.
If, for some reason, you are not able to meet this spend, then you will forfeit your welcome bonus.
$4,000 is a substantial amount. Therefore, an all-too-common dilemma is determining viable methods to meet this spending requirement as rapidly as possible without impacting your finances.
I certainly do not want you to go into debt. That will defeat the purpose of frugal travel using miles and points.
Here are some of my favorite ways to meet my minimum spending requirement:
- Prepay Utilities
- Health & Dental Bills
- Taxes (Federal, State, Property, etc.)
- Insurance (Health, Home, Auto, Rental, etc.)
- Organic spending, such as groceries, dining, and gas.
If you would like to read more about other methods I have used throughout the years to help me meet my minimum spend, feel free to check out the related post below.
I Already Have the Sapphire Preferred. What do I Apply for Next?
If you already have the Chase Sapphire Preferred, then the following cards to apply for will depend on your travel goals and financial profile.
I recommend reaching out to us in our free Travel Miles and Points Facebook Group, where members help each other progress in this hobby.
I will see you there!
Final Thoughts
Ultimate Rewards Points earned from the Chase Sapphire Preferred are among the most valuable in the business because they can be used readily for travel.
If you’re looking for a great beginner card, the Sapphire Preferred Card is a fantastic option.
This card is hard to beat, with a welcome bonus worth $750+ of travel and a reasonable annual fee.
Plus, the points it earns are incredibly valuable, making it an excellent choice for anyone looking to win the points-and-miles game.
I know there are many great travel rewards credit cards out there, but if you’re searching for the best one for beginners, the Chase Sapphire Preferred is the clear winner.
Feel free to reach out with any questions.
Thanks for reading!
ADVERTISER DISCLOSURE: The Frugal Tourist is part of an affiliate sales network and receives compensation for sending traffic to partner sites, such as MileValue.com. This compensation may impact how and where links appear on this site. This site does not include all financial companies or all available financial offers. Terms apply to American Express benefits and offers. Enrollment may be required for select American Express benefits and offers. Visit americanexpress.com to learn more. All information about the American Express Schwab Platinum has been collected independently by The Frugal Tourist.
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