The Chase Sapphire Preferred® card offers 40,000 bonus points for new cardholders who manage to spend a total of at least $3,000 during their first three months of membership. This translates into $500 toward travel booked through Ultimate Rewards. Previous promotions for this card had offered a slightly sweeter deal for new cardholders, but Chase Sapphire Preferred® is still one of the most attractive travel reward credit cards overall.
When you redeem points for flights, cruises and other travel through Chase’s Ultimate Rewards program, you get a 20% price discount. Points are earned at the following rates when you make purchases with Chase Sapphire Preferred:
- Two points for every dollar spent on dining at restaurants and travel, including flights, hotel and car rentals
- One point for every dollar spent on all other purchases
The rewards don’t stop with this point system. The Chase Sapphire Preferred card offers three additional perks not typically found with other credit cards:
- No foreign transaction fees. When cardholders make international purchases, most credit cards charge an additional fee, usually up to 3%, just to process the transaction. That can be in addition to any foreign currency exchange fee. The Chase Sapphire Preferred card has no foreign transaction fee so it’s perfect for use on purchases anywhere outside the United States.
- A 7% Annual Points Dividend. At the beginning of each year, Chase will add a 7% annual points dividend on new points earned on purchases accrued in the previous year. Points that were accrued and redeemed within the same year still count for the bonus calculation. For example, if you earn 10,000 rewards points between now and December, your January or February statement would reflect a credit of 700 bonus points.
- Live customer service representative. When customers call the customer service line, they have access to deal directly with a live representative rather than automation. At any time of the day or night, cardholders will be able to call the always-available customer service. I have not had a chance to test the quality of this customer service, so please feel free to share your experiences at the end of this review.
There is an introductory annual fee of $0 the first year, then the annual fee is $95 per year, it’s important to keep this in mind as you enter the second year of membership. As always, you should consider whether the rewards you receive exceed the annual fee in value. And of course, you must be a Type B credit card user, one who does not pay interest or late fees due to paying the bill in full and on time every month, in order for any of these rewards to be worthwhile — otherwise you’re better off finding a low-interest credit card.
For the right profile of cardholder, $500 worth of travel plus the overall rewards of this card can mean quite a bit of time and money saved. To find more information about this deal, visit the secure application page for Chase Sapphire Preferred.
Updated May 10, 2013 and originally published May 18, 2011. If you enjoyed this article, subscribe to the RSS feed or receive daily emails. Follow @ConsumerismComm on Twitter and visit our Facebook page for more updates.