Chase Sapphire Preferred® Card Benefits For 2014

Posted by CreditCardGuru

Chase Sapphire PreferredThe Chase Sapphire Preferred card is one of the the most heavily promoted credit cards on the market, and it has one of the most insanely lucrative signup bonus offers right now.

My only issue with their commercials is that I wish they did a better job highlighting the benefits. Yes, I can understand that it’s challenging to do in a 30 or 60 second video clip, which is why I’ll walk you through the 10 most important benefits.

1. The signup bonus is among the best on the market

Chase has kept the initial bonus consistent for a while but it’s unsure how long it will last. So, if you’re in the market for a prestigious and best-in-class rewards card then you shouldn’t hesitate to apply given what it offers:

  • 40,000 bonus points awarded after you spend $4,000 in the first 3 months from account opening. Considering that’s an average of $1,000 per month, it should not be too difficult to accomplish.
  • 5,000 additional bonus points after you add the first authorized user and make a purchase in the first 3 months from account opening.
  • Introductory Annual Fee of $0 the first year, then $95. This is a nice feature, allowing you to test drive the card for a full year before having to pay a membership fee.

2. Convert points to REAL frequent flyer miles

There are plenty of cards which offer generic reward “miles” but they’re not true airline-specific frequent flyer miles. Instead, each “mile” is typically worth a credit of exactly one cent that can be spent towards airfare on any airline. Don’t get me wrong- there are benefits to going with those types of cards.

But the big advantage of frequent flyer miles is that often times, they can be worth a lot more than a penny each. For example, if you redeemed 25,000 miles for a flight which has a cash price of $500, then you’re basically getting two cents of value per mile (obviously the conversion will vary depending on the airline and flight).

converting points to airline miles

With the Chase Sapphire Preferred’s airline partners, you can convert your points to actual frequent flyer miles or hotel points usually on a 1:1 basis. The participating airlines and hotel frequent traveler programs are:

  • United Airlines MileagePlus
  • Southwest Airlines Rapid Rewards
  • Marriott Rewards
  • Korean Air Skypass
  • Amtrak Guest Rewards
  • Hyatt Gold Passport
  • Ritz-Carlton Rewards
  • Virgin Atlantic Flying Club
  • British Airways Avios
  • InterContinental Hotels Priority Club

3. Or get 20% off travel when you redeem through Ultimate Rewards

If you don’t want to convert points to frequent flyer miles, you have another option for travel, which is to redeem through the Chase Ultimate Rewards travel website and you will get travel rewards for 20% fewer points..

1 point = 1.25 cents value towards airfare, hotels, car rentals and cruises through Ultimate Rewards

And don’t worry, the prices you see on Chase’s Ultimate Rewards booking tool are the same or comparable to what you would see on other major travel websites (in fact, I suspect one of them provides the results for Chase’s website). So rest assured this is not a racket where they show you inflated prices.

4. It will make your Chase Freedom card more valuable

I have the Chase Freedom, which as you probably know is a credit card that gives 5% cash back on categories. Even though it gives you Chase Ultimate Rewards points, they aren’t as versatile as what the Sapphire Preferred gives.

Normally with the Freedom card…
…You are not allowed to transfer points to frequent flyer miles
…You are not eligible for 20% off travel rewards via Ultimate Rewards

That means the most value you get out of each Freedom Ultimate Reward point is a single penny.

However, if you have the Sapphire Preferred card, then you can transfer your Freedom UR points to Sapphire UR points:

transfer points

That makes the Freedom + Sapphire Preferred a powerful duo. Because the Freedom will earn you 5x points on categories, and then by transferring them to your Preferred card, you will be able to get more value since you will be able to use them for Ultimate Rewards travel or convert them to frequent flyer miles.

5. No foreign transaction fees + Chip & Signature Technology

OK, this one they sometimes do mention on the commercials so you might already be aware of it.

But what you might not be aware of is that many competing travel cards still charge this foreign transaction fees. For example, the AmEx Premier Rewards Gold Card still charges 2.7%, which is surprising given its significantly higher annual fee of $175.

For 2014 and onward, all Sapphire Preferred accounts now come with the Chip and Signature technology by default.

6. Tons of insurance benefits and other protections are included

On eligible purchases, the Sapphire Preferred offers a number of protections:

  • Trip Delay
  • Baggage Delay
  • Travel Accident Insurance
  • Auto Rental Collision Damage Waiver
  • Lost Luggage Reimbursement
  • Trip Cancellation Insurance
  • Purchase Protection
  • Extended Warranty
  • Price Protection
  • Return Protection

7. Put it on plastic metal

Want to pay with plastic? That might not be possible, because the Chase Sapphire Preferred card is actually made out of metal!

photos of Sapphire Preferred made out of metal

Here’s how CreditCardForum member “hematino” described the material:

“I got my CSP in May. It has only “Chase Sapphire Preferred” and my name on the front and is not really raised like most cards. The mag strip, Mastercard logo, account number, and my name again are all on the back. The card is made of metal (looks like steel) and it feels pretty heavy. Not everyone thinks so, but I think it’s a darn nice looking card”

Trust me, this card leaves quite the impression when you plop it on the counter. Not that you would get it for that reason, I’m just saying…

8. The rewards aren’t just for travel

Yes, it’s heavily marketed as a card for travel rewards, but you can actually use the rewards for almost anything:

  • Cash Back: 100 points = $1.00. The minimum for redemption is very low; redeem as little as 2,000 points for $20.00 cash back.
  • Merchandise: Thousands of options but rather than going this route, I recommend just opting for cash back and buying stuff with that.
  • Spend on Amazon: Every 100 points = $1.00 to spend on Amazon.
  • Bid on Auctions: Normally I’m not a fan of using points for “experiences” but Chase offers some pretty cool stuff for a good point value:

Ultimate Rewards auctions

9. How you earn points

There’s no limit to how many points you can earn:

  • 2 points per dollar on travel
  • 2 points per dollar on dining at restaurants
  • 1 point per dollar on all other purchases

Between the 2x point categories and higher point value for travel, you can really make a killing with this rewards program.

10. Get 24/7 direct access to dedicated advisers

You know what I really dislike about calling credit card companies? Before you talk to a rep, they often FORCE you to listen to info that you’re not calling about, such as your statement balance, date of last payment received, mailing address for payments, etc.

Guess what? With Chase Sapphire Preferred card, you don’t have this predicament. When you call, a live person answers the phone. You don’t even have to press any buttons and you actually get someone who speaks English.

Here is the link to get this offer while its available

This post was written or last updated August 5, 2014


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Editorial Disclosure: The editorial content on this page is not provided by any bank, credit card issuer, airline or hotel chain, and has not been reviewed, approved or otherwise endorsed by any of these entities. Opinions expressed here are author's alone, not those of the bank, credit card issuer, airline or hotel chain, and have not been reviewed, approved or otherwise endorsed by any of these entities.

12 comments... read them below or add your own

  1. Irene July 30, 2014 at 4:54PM

    If I pay for airline tickets to Europe using my sapphire card and need to cancel the trip, is this covered and will I get a refund?

  2. Irene July 30, 2014 at 4:51PM

    Is there a website with this credit card to book airling and a trip to France and get better prices?
    Thank you

  3. Bob Lewis July 2, 2014 at 7:03PM

    I am planning on renting a car in Italy and would like a detailed list of car rental insurance benefits and limitations that come with the sapphire card.

    Thanks

  4. sanford goldberg May 16, 2014 at 12:09PM

    I would like a detailed list of the insurance benefits that come come with the sapphire card

  5. mindy March 2, 2014 at 7:49PM

    Can I use the points to upgrade to a better seat after I purchase a ticket?

  6. Jennifer December 5, 2013 at 12:56PM

    Do the points accumulated ever expire?

  7. Marci May 29, 2013 at 10:17AM

    For point redemption, “get 25% more value for points thru UR travel”, the application shows 20%. Which is correct? If it has been reduced to 20%, when was this change made? Thanks.

    • Michael June 2, 2013 at 8:47PM

      I know their marketing is sometimes confusing. On the application they say “20% fewer points needed” which is the same as points having 25% more value.

      • Marty June 18, 2014 at 9:03AM

        I don’t get it… how is 25% equal to 20%. are points usually 1.05 percent for travel and then through ultimate rewards its 1.25? what am I missing?

  8. Dustin March 5, 2013 at 8:48PM

    “The prices you see on Chase’s Ultimate Rewards booking tool are the same that you would see on other major travel websites (in fact, I suspect one of them manages the website for Chase). So rest assured this is not a gimmick where they give you inflated prices.

    I’ve seen customer complaints about the ultimate rewards system being very user unfriendly and overpriced. I’m wondering if your statements are accurate here?

    • Michael March 22, 2013 at 3:19PM

      They’re probably referencing the UR points for merchandise, which indeed isn’t the best deal (and the same holds true for merchandise from any CC program). I use the UR program to buy flights all the time and check them concurrently on Expedia, Kayak, etc. to verify the price. The UR program runs off of the same feeds these other sites do.

      • Josh August 3, 2013 at 3:44PM

        I’ve used the UR program from international flights and the listings are definitely not the same. When I used expedia or travel.bing.com there were cheaper flights than those that showed up in the UR site. With the 25% discount I got and the additional points earned, I think it was still better to use the UR. There were definitely fewer choices, but then again, this could be because when you use expedia as opposed to orbitz or priceline, etc. they do come up with different listings so it may not be intentional bias on the UR’s part.

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