The Quick Version
- The Chase Sapphire Preferred carries a $95 annual fee, partially offset by a $50 annual hotel credit through Chase Travel
- It earns 5x on Chase Travel, 3x on dining, online groceries, and select streaming, and 2x on other travel
- The 75,000-point welcome bonus after $5,000 spend in the first 3 months is worth well over $900 in travel
- Transfer access to 14 airline and hotel partners at 1:1 is the card's most valuable feature for travelers
- It's worth it for people who travel and dine out regularly — not for pure cash-back users or those who spend under $1,500 per year
The Chase Sapphire Preferred has been a benchmark travel rewards card for years. At $95 per year, it sits in a tier that's accessible enough for most people but substantial enough to make you think twice. The question isn't whether the card is good — it is — but whether it's good for your situation.
This review covers what the card actually costs, what you get for it, and how to decide if it belongs in your wallet.
Quick Answer
Yes — for most people who travel at least occasionally and eat out regularly, the Chase Sapphire Preferred justifies its $95 fee. The $50 annual hotel credit cuts the effective cost to $45. The welcome bonus alone is worth multiples of the annual fee. And the 1:1 point transfers to 14 travel partners give your rewards real upside that flat cash-back cards don't.
It's not the right card if you don't travel, prefer cash back over points, or won't use the hotel credit. For heavy travelers who can justify a $795 fee, the Chase Sapphire Reserve offers more.
Key Benefits
$50 Annual Hotel Credit
Each account anniversary year, Chase applies up to $50 in statement credits for hotel bookings made through Chase Travel. It applies automatically — no activation required. This credit reduces the card's effective annual fee from $95 to $45 for anyone booking at least one hotel night per year through the portal.
Complimentary DashPass
The card includes 12 months of complimentary DashPass, which waives delivery fees and reduces service fees on eligible DoorDash orders. The membership is valued at $120. After the free year, the subscription auto-renews unless canceled. Through December 31, 2027, cardholders also receive a $10 monthly promo credit on non-restaurant DoorDash orders.
10% Anniversary Points Boost
At each account anniversary, Chase deposits bonus points equal to 10% of all purchases made during the prior cardmember year. Spend $10,000 and you receive 1,000 bonus points automatically. This compounds over time for steady spenders.
Travel Protections
The card includes a suite of travel protections that add real financial value:
| Protection | Coverage |
|---|---|
| Trip Cancellation / Interruption | Up to $10,000 per traveler, $20,000 per trip |
| Trip Delay Reimbursement | Up to $500 per traveler |
| Baggage Delay Insurance | Up to $100/day for 5 days |
| Auto Rental Collision Damage | Up to $60,000 primary coverage |
| Purchase Protection | 120 days, up to $500 per item |
Primary Auto Rental Coverage
The card's auto rental coverage is primary — meaning it pays before your personal auto insurance. Most no-fee cards offer secondary coverage only. This alone can save the cost of the rental company's collision waiver, often $15–$30 per day.
Limited-Time Category Bonuses
Through September 30, 2027, the card earns 5x points on Lyft rides. Through December 31, 2027, eligible Peloton purchases over $150 earn 5x points. These are time-limited but meaningful for cardholders who use these services.
Annual Fee and Costs
| Item | Amount |
|---|---|
| Annual fee | $95 |
| Annual hotel credit (Chase Travel) | −$50 |
| Effective annual cost | $45 |
| Foreign transaction fee | $0 |
| DashPass value (Year 1) | $120 |
The $95 annual fee is not waived the first year, but the welcome bonus and DashPass benefit more than compensate in year one. In ongoing years, the $50 hotel credit and 10% anniversary bonus are the primary mechanisms for offsetting the fee. Anyone who books one eligible hotel stay per year through Chase Travel recaptures more than half the annual cost automatically.
Rewards Structure
| Category | Rate | Notes |
|---|---|---|
| Chase Travel portal (flights, hotels, cars) | 5x | Excludes hotel purchases qualifying for the $50 credit |
| Dining | 3x | Restaurants, eligible delivery services, and takeout |
| Online groceries | 3x | Excludes Target, Walmart, and wholesale clubs |
| Select streaming services | 3x | |
| Lyft rides | 5x | Through September 30, 2027 |
| Other travel | 2x | Flights, hotels, transit not booked through Chase |
| Everything else | 1x | |
| Anniversary bonus | +10% | Applied to prior year's total spend at each anniversary |
Points earn as Chase Ultimate Rewards, which can be redeemed through the Chase Travel portal at 1.25 cents per point, transferred to airline and hotel partners at 1:1 (where values of 1.5–2+ cents per point are achievable), or redeemed for cash back at 1 cent per point.
Transfer Partners Include 14 Programs
Airlines: Aer Lingus, Air Canada Aeroplan, British Airways, Air France/KLM Flying Blue, Iberia Plus, JetBlue, Singapore Airlines, Southwest, United, Virgin Atlantic. Hotels: IHG One Rewards, Marriott Bonvoy, World of Hyatt. Transfers are instant and irreversible — always confirm award availability before transferring.
Who This Card Is Best For
The Chase Sapphire Preferred works best for people who:
Travel at least a few times per year and book hotels or flights — the $50 hotel credit and 5x Chase Travel rate require actual travel use to deliver value. The card's transfer partners also only matter if you have a trip to plan.
Dine out regularly — 3x on dining including delivery is one of the better rates in this fee tier. Someone spending $400/month on dining earns 1,200 points monthly just in that category, adding up to 14,400 points per year.
Want a flexible points program without a high annual fee — at $95, the Sapphire Preferred is the lowest-cost entry point into Chase's transferable points ecosystem. The Freedom Flex and Freedom Unlimited earn the same points but without transfer access unless paired with a Sapphire card.
Are new to travel rewards — the card's earning structure is straightforward, the portal is intuitive, and the transfer program is well-documented with consistent 1:1 ratios across all 14 partners.
Drawbacks
No Airport Lounge Access
The Sapphire Preferred does not include lounge access. For travelers who want Priority Pass or equivalent coverage, the Chase Sapphire Reserve ($795 annual fee) or a co-branded airline card is required.
1x on Non-Bonus Spending
Purchases outside the bonus categories earn 1 point per dollar. For significant non-category spending, pairing with a Chase Freedom Unlimited (1.5x on everything) improves overall returns. Those points pool into the same Ultimate Rewards account.
Lower Portal Rate Than the Reserve
The Sapphire Preferred redeems at 1.25 cents per point through Chase Travel. The Reserve redeems at 1.5 cents per point. For cardholders who book primarily through the portal rather than transferring, this 0.25-cent difference compounds across larger balances.
Welcome Bonus Requires $5,000 Spend
The 75,000-point welcome bonus requires $5,000 in purchases within the first three months. That's a higher minimum than some competing cards. Anyone applying specifically for the bonus should plan their spending accordingly.
Is It Worth It?
For most people who travel and dine out — yes.
The $50 hotel credit cuts the effective fee to $45. The welcome bonus alone covers years of annual fees at any reasonable travel redemption rate. The 3x dining and 5x Chase Travel earning rates are competitive for a $95 card. And the 1:1 transfer access to partners like World of Hyatt, United, and Air Canada Aeroplan gives you a direct path to high-value redemptions that cash-back cards simply can't match.
The card is not worth it if you don't travel, won't use the hotel credit, prefer straightforward cash back, or spend under roughly $1,500 per year on the card. In those cases, a no-fee Chase card delivers most of the earning potential without the annual cost.
For heavy travelers who can offset a $795 fee through lounge access, $300 travel credits, and a higher portal redemption rate, the Chase Sapphire Reserve is worth evaluating. But for the majority of cardholders — occasional to frequent travelers who want flexibility without premium pricing — the Sapphire Preferred hits the right balance.
Final Thoughts
The Chase Sapphire Preferred is a well-structured travel rewards card at a reasonable price. Its value depends on how much you travel and dine out — and whether you'll use the hotel credit to keep the effective fee at $45.
The card's real edge is transferable points. At 1:1 to 14 partners, a point balance built through everyday spending becomes usable for flights and hotels that would otherwise cost significantly more. That flexibility is what separates it from cash-back alternatives at the same fee level.
If you travel at least occasionally, eat at restaurants or order delivery, and want to start building a points balance with real redemption options — the Sapphire Preferred is worth it.
Frequently Asked Questions
No. The $95 annual fee is charged in the first year. However, the welcome bonus — 75,000 points after $5,000 in spending within 3 months — more than compensates for it. At conservative travel redemption values, the bonus alone is worth $900 or more, making the first-year net strongly positive.
The current bonus is 75,000 points after spending $5,000 in the first three months. Redeemed through the Chase Travel portal, those points are worth $937.50 at 1.25 cents per point. Transferred to a partner like World of Hyatt or United at higher per-point values, the bonus can exceed $1,000 in travel value.
The $50 annual hotel credit applies to hotel bookings made through the Chase Travel portal. It does not apply to hotels booked directly with the property or through other booking platforms. The credit is applied automatically as a statement credit and resets each account anniversary year.
No. The card charges no foreign transaction fees, making it a practical card for international travel. Most hotel, dining, and transportation purchases abroad earn the standard category multipliers.
The Sapphire Preferred costs $95 per year; the Reserve costs $795. The Reserve offers a $300 annual travel credit, Priority Pass lounge access, 1.5 cents per point in the Chase Travel portal (versus 1.25 cents for the Preferred), and higher earning rates in some categories. The Reserve makes financial sense for heavy travelers who fully use its credits and lounge access. For occasional to moderate travelers, the Preferred's lower fee typically delivers better net value.