October 24, 2020

4 reasons to apply for the Chase Sapphire Preferred Card now

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Chase recently launched an increased welcome offer on the Sapphire Preferred card. You can currently earn 80,000 points after spending $4,000 in the first three months of having the card.

Before this change, the sign-up bonus on the Chase Sapphire Preferred was 60,000 Ultimate Rewards points, with the same minimum spending requirement. The annual fee of $95 is not waived on this offer, as it has been on some previous Sapphire Preferred offers, but increasing the welcome offer by a full 20,000 points is a significant jump, and worth considering.

Here are four reasons why you should apply for the new Sapphire Preferred offer now.

Regular APR

15.99%-22.99% Variable

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  • Details
  • Pros & Cons

    • Earn 80,000 bonus points after you spend $4,000 on purchases in the first 3 months from account opening. That’s $1,000 toward travel when you redeem through Chase Ultimate Rewards®.
    • 2X points on travel and dining at restaurants worldwide, eligible delivery services, takeout and dining out & 1 point per dollar spent on all other purchases.
    • Get 25% more value when you redeem for airfare, hotels, car rentals and cruises through Chase Ultimate Rewards. For example, 80,000 points are worth $1,000 toward travel.
    • Get unlimited deliveries with a $0 delivery fee and reduced service fees on orders over $12 for a minimum of one year on qualifying food purchases with DashPass, DoorDash’s subscription service. Activate by 12/31/21.
    • Earn 5X points on Lyft rides through March 2022. That’s 3X points in addition to the 2X points you already earn on travel.
    Pros
    • High sign-up bonus starts you off with lots of points
    • Strong travel coverage
    Cons
    • Doesn’t offer a Global Entry/TSA PreCheck application fee credit or any other statement credit benefits


    Read Our Review
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    We’re focused here on the rewards and perks that come with each card. These cards won’t be worth it if you’re paying interest or late fees. When using a credit card, it’s important to pay your balance in full each month, make payments on time, and only spend what you can afford to pay.

    80,000 Ultimate Rewards points are worth up to $1,000

    We’ll start with the biggest reason to apply, and that is the 80,000 points that you’ll get after spending at least $4,000 in the first three months of having the card.

    If you redeem them for statement credits, 80,000 points are worth $800. But if you redeem through the Chase Ultimate Rewards portal, you get a 25% bonus, making your 80,000 points worth $1,000. You can also use Chase’s recently introduced Pay Yourself Back feature, allowing you to also get the 25% bonus for grocery stores, dining, home-improvement stores, and eligible charities.

    Beyond the sign-up bonus, the Chase Sapphire Preferred earns:

    • 5 points per dollar on Lyft rides through March 2022
    • 2 points per dollar on travel
    • 2 points per dollar on dining
    • 1 point per dollar on all other purchases

    You can read our full Chase Sapphire Preferred review for more information.

    You’ll have access Chase’s valuable transfer partners

    Transferring your Ultimate Rewards points to Chase’s hotel and airline partners can be one of the highest-value ways to redeem your Chase points. Chase currently has 10 airline and 3 hotel partners, and they all transfer at a ratio of 1:1.

    That means that 1 Ultimate Rewards point will turn into one airline mile or hotel point. It’s possible to get 2 cents per point worth of value or even more by transferring your Ultimate Rewards points to travel partners instead of redeeming through the portal.

    It pairs well with the Freedom Flex or Freedom Unlimited

    Chase has several different credit cards that offer Ultimate Rewards points. Some of its cards, like the Sapphire Preferred, come with annual fees. Other Chase credit cards like the Chase Freedom Flex℠ or Chase Freedom Unlimited® have no annual fee.

     If you only have no-annual-fee Chase credit cards, you still earn Ultimate Rewards, but your points are only worth 1 cent per point and you are not eligible to transfer your Ultimate Rewards to hotel or airline partners.

    So if you have a large collection of Ultimate Rewards or cash back from an existing Chase Freedom card, that’s a great reason to apply for the Sapphire Preferred. You can then combine your Ultimate Rewards accounts and even your existing Ultimate Rewards points instantly become worth 25% more. 

    You get benefits like primary car rental insurance coverage

    In addition to the Ultimate Rewards points that you earn for signing up for the Sapphire Preferred and the points you’ll earn from everyday spending, the Sapphire Preferred also comes with a variety of useful benefits.

    One of its best perks is primary car rental insurance. That means you can use it instead of your own insurance, and you don’t need to purchase any coverage from the rental company. While the coverage is not as good as that of the ultra-premium Sapphire Reserve, the Chase Sapphire Preferred is still one of the best credit cards for car rental insurance.

    Make sure you’re eligible before applying

    There are several great reasons to apply for the Sapphire Preferred card while it’s offering an 80,000-point welcome bonus, but you’ll want to make sure you’re eligible before you hit “apply.”

    The first question to determine your eligibility is whether you’ve opened five or more new credit card accounts in the last 24 months. If you have, due to Chase’s 5/24 rule, you will not be approved for the Sapphire Preferred until enough time has passed.

    Second, you’re only eligible for this 80,000-point offer if you do not currently hold either the Sapphire Preferred or Sapphire Reserve, and if you haven’t received a welcome bonus on either of those cards in the past 48 months.

    If you do already have a Chase Sapphire Reserve® (and have had it at least four years), you might even consider ditching your Sapphire Reserve for this new Sapphire Preferred offer. You would need to cancel your Sapphire Reserve card before applying for the new Sapphire Preferred card.

    Regular APR

    15.99%-22.99% Variable

    Chevron iconIt indicates an expandable section or menu, or sometimes previous / next navigation options.

  • Details
  • Pros & Cons

    • Earn 80,000 bonus points after you spend $4,000 on purchases in the first 3 months from account opening. That’s $1,000 toward travel when you redeem through Chase Ultimate Rewards®.
    • 2X points on travel and dining at restaurants worldwide, eligible delivery services, takeout and dining out & 1 point per dollar spent on all other purchases.
    • Get 25% more value when you redeem for airfare, hotels, car rentals and cruises through Chase Ultimate Rewards. For example, 80,000 points are worth $1,000 toward travel.
    • Get unlimited deliveries with a $0 delivery fee and reduced service fees on orders over $12 for a minimum of one year on qualifying food purchases with DashPass, DoorDash’s subscription service. Activate by 12/31/21.
    • Earn 5X points on Lyft rides through March 2022. That’s 3X points in addition to the 2X points you already earn on travel.
    Pros
    • High sign-up bonus starts you off with lots of points
    • Strong travel coverage
    Cons
    • Doesn’t offer a Global Entry/TSA PreCheck application fee credit or any other statement credit benefits


    Read Our Review
    Read Our ReviewA looong arrow, pointing right

    Disclosure: This post is brought to you by the Personal Finance Insider team. We occasionally highlight financial products and services that can help you make smarter decisions with your money. We do not give investment advice or encourage you to adopt a certain investment strategy. If you take action based on one of our recommendations, we get a small share of the revenue from our commerce partners. This does not influence whether we feature a financial product or service. We operate independently from our advertising sales team.

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    Please note: While the offers mentioned above are accurate at the time of publication, they’re subject to change at any time and may have changed, or may no longer be available.

    Disclosure: This post is brought to you by the Personal Finance Insider team. We occasionally highlight financial products and services that can help you make smarter decisions with your money. We do not give investment advice or encourage you to adopt a certain investment strategy. What you decide to do with your money is up to you. If you take action based on one of our recommendations, we get a small share of the revenue from our commerce partners. This does not influence whether we feature a financial product or service. We operate independently from our advertising sales team.

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