Is the Chase Sapphire Preferred Card Annual Fee Worth It?
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Written by
Dawn Allcot
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Edited by
Emily Gadd
Amongst its assortment of rewards credit cards, Chase offers two cards tailored to frequent travelers: Chase Sapphire Reserve® and the Chase Sapphire Preferred® Card. While Sapphire Reserve is revered as the card of choice for many travel-savvy millennials who consider themselves big spenders on travel and dining, the Sapphire Preferred Card also offers extensive benefits with a much lower annual fee.
The Sapphire Preferred Card’s annual fee is $95, with free cards for authorized users on an account. The annual fee for the Sapphire Preferred Card is much lower than the $157 national average for cards issued by big banks, and just $1 over the average for smaller banks and credit unions, according to Consumer Financial Protection Bureau statistics.
Since the Sapphire Preferred Card is a Visa card issued by the country’s largest bank, it comes with tremendous benefits and high-value rewards, but at a low price. Still, if most of the best credit cards in your wallet carry no annual fee, you may wonder if Sapphire Preferred is worth the price.
Sapphire Preferred Card Benefits
Unlike The Platinum Card® from American Express (an advertising partner) and Sapphire Reserve, which carry annual fees over $500, the Sapphire Preferred Card offers a welcome bonus that will more than cover your $95 annual fee for the first year. Spend just $5,000 in purchases within the first 3 months after account opening, and you’ll earn 75,000 bonus Chase Ultimate Rewards® points. Your points are worth up to 75% more when you redeem them through Chase Travel℠, making this bonus worth up to $1,312. With this bonus, you’ve paid for the first seven years of card ownership.
As far as points:
- Earn 5x points on travel purchased through Chase Travel (except purchases that qualify for the $50 annual Chase Travel hotel credit)
- Earn 2x points with other travel purchases
- Earn 3x points on dining, select streaming services, and online grocery purchases
The Sapphire Preferred Card also has other benefits that make this card one of the best values you can find for frequent travelers.
DoorDash Credits
Even if you don’t fulfill the requirements for the welcome bonus, you can justify your annual fee with a complimentary DashPass subscription (valid for orders through DoorDash and Caviar), a $120 value. With this membership, you’ll get $0 delivery fees and lower service fees, plus $10 a month off non-restaurant DoorDash orders. Activation is required by Dec. 31, 2027.
Anniversary Points Boost
Each account anniversary year, you’ll earn bonus points that equal 10% of your total spend in points from purchases made with your credit card during the previous account anniversary year at a rate of 1 point for each dollar spent. If you haven’t come close to earning enough rewards to justify your annual fee in rewards and perks, this boost should get you there.
Additional Travel Benefits
Most travel rewards credit cards come with impressive travel benefits, including trip protection. The Sapphire Preferred Card offers strong travel insurance benefits, including:
- Auto rental coverage up to $60,000
- Trip cancellation and interruption insurance up to $20,000 per trip
- Trip delay reimbursement up to $500
- Travel accident insurance up to $500,000 for accidental death or dismemberment
- Lost luggage reimbursement up to $3,000 per traveler
- Baggage delay insurance of up to $100 a day for five days
- Travel emergency assistance (costs may apply)
- Roadside assistance (service fees may apply)
Shopping Benefits
The Sapphire Preferred Card includes purchase protection of up to $500 for 120 days from the date of purchase. If a product includes a manufacturer’s warranty, your Chase card extends the warranty by one year on eligible warranties of three years or less.
Is the Fee Worth the Benefits?
For cardholders who fulfill the requirements for the welcome offer and plan to cash in rewards for travel through the Chase Portal, the Sapphire Preferred Card is virtually a no-brainer. You can earn 75,000 bonus points, worth up to $1,312 in travel, which will cover your annual fee for over seven years. Plus, additional cards for authorized users are free, making this the ideal card for couples or families with adult children.
This card may not be for you if you don’t travel a lot, although the yearly DashPass benefits would also justify the annual fee and then some. Plus, 3x points on dining, grocery delivery, and streaming can help homebodies maximize their rewards. To learn more, read about Sapphire Preferred Card benefits.
This card may not be for you if you are willing to pay a bit more for a travel rewards card in order to receive airport lounge access or TSA PreCheck / Global Entry credits. In that case, Amex Platinum or Sapphire Reserve may be a better value, in spite of the higher annual fees.
The information related to the Chase Sapphire Reserve® was collected by CardCritics™ and has not been reviewed or provided by the issuer of this product/card. Product details may vary. Please see issuer website for current information. CardCritics™ does not receive a commission for this product.
Frequently Asked Questions
The Chase Sapphire Preferred Card offers generous travel rewards and a modest annual fee. These answers to some frequently asked questions will help you decide if it’s the right card for you.
Can you get the Chase Sapphire Preferred Card annual fee waived?
Chase does not waive the annual fee for the Sapphire Preferred Card. However, if you meet the requirements and spend $5,000 in qualified purchases within the first three months after opening the account, you can earn 75,000 in bonus points, worth up to $1,312 if redeemed as rewards through Chase Travel.
Does the Chase Sapphire Preferred Card have an annual fee?
The Sapphire Preferred Card has an annual fee of $95.
Is it worth getting the Chase Sapphire Preferred Card?
For frequent travelers with excellent credit looking for a high-value travel rewards credit card with a relatively low annual fee, the Sapphire Preferred Card is well worth it. The annual fee is just $95, easily justified by the welcome bonus of 75,000 points, worth up to $1,312 in travel rewards when you spend $5,000 within the first three months.
How do I avoid the Chase Sapphire Preferred Card fee?
The Sapphire Preferred Card has a $95 annual fee that can’t be avoided. However, you can cover the fee with the generous welcome bonus or through the free DashPass subscription members receive when they activate, worth roughly $120 per year.
