Updated February 22nd, 2013: Every major bank is competing in the reward card space and it should come as no surprise that Chase, one the nation’s largest banks, has a pair of strong offerings targeted to the reward travel market. Unlike so many other travel focused rewards cards, Chase Sapphire ® and Chase Sapphire Preferred ® are not affiliated with a particular airline or hotel chain. Instead, they offer their own proprietary Ultimate Rewards points accrual and redemption system.
The Ultimate Rewards you earn with either Chase Sapphire Card can be used to get cash back, merchandise, gift cards or travel rewards, making this one of the most flexible rewards programs. Plus, consumers can opt for the Chase Sapphire Preferred ®’s $500 bonus offer or a lesser, though not insignificant $100 bonus with the standard Sapphire ® card.
Chase Sapphire ® Card Reward Features
As is typical with most rewards cards, cardholders earn one point per dollar spent on most purchases. With the Sapphire Preferred ® Card, cardholders also earn 2 points per dollar spent on travel and dining. With the standard Sapphire ® card, consumers only earn 2 points on dining. However, unlike most point based rewards programs, Chase Ultimate Reward points are worth one cent each. Chase Ultimate Reward points never expire and, as is typical, you can get extra points by shopping through Chase’s online portal, the Ultimate Rewards Mall.
When it comes time to redeem, rewards earned with either Chase Sapphire ® Card can be used to obtain a statement credit, get a cash back check or book travel. (With Chase Sapphire Preferred ®, points are worth 25% more when used for travel booked via Chase.) There are also cash back, merchandise and gift card redemption options, but you tend to get significantly less value when you use your points for merchandise. Thus, as with any rewards program, it is best to avoid “shopping” with your points.
As mentioned earlier – and perhaps most importantly – Chase Sapphire ® and Chase Sapphire Preferred ® also come with fairly substantial sign up bonuses. With the standard Sapphire Card, you get 10,000 Ultimate Rewards points – a $100 value. With the Sapphire Preferred ® Card, you get 40,000 Ultimate Rewards points – a $400 to $500 value. For complete details, please see the information tables below.
- 40,000 bonus points after you spend $3,000 in the first 3 months - that's $500 toward travel rewards!
- 2 points per dollar spent on travel and dining at restaurants & 1 point per dollar spent on all other purchases
- Get 20% off airfare, hotels, car rentals and cruises when you redeem through Ultimate RewardsSM
- No foreign transaction fees
- Receive a 7% Annual Points Dividend on all new points earned on purchases - even on points already redeemed
- 1:1 point transfer to leading frequent travel programs - that means 1,000 Ultimate Rewards points equal 1,000 partner miles/points
- Direct access to expert service advisors anytime
- Introductory Annual Fee of $0 the first year, then $95
N/A*
N/A for N/A*
15.24% (Variable)*
$0 1st year, then $95
Excellent Credit
- 10,000 bonus points after you spend $500 in the first 3 months - that's $100 toward travel rewards!
- 2 points per dollar spent at restaurants & 1 point per dollar spent on all other purchases.
- Points never expire and there are no limits on how many points you can earn
- Redeem points for travel, gift cards, merchandise, cash back and more
- Direct access to expert service advisors anytime
- No annual fee!
N/A*
N/A for N/A*
15.24% (Variable)*
$0
Excellent Credit
Chase Sapphire ® vs. Chase Sapphire Preferred ®
While the standard Sapphire card does not have an annual fee, Chase Sapphire Preferred ® offers a handful of redemption options that might make it worth the additional $95 annual fee for some customers. (This fee is waived the first year.) Preferred card holders receive an additional 25% when making their travel purchases through Chase’s website, making their points worth 1.25 cents in those situations. This perk increases the value of the 40,000 sign up bonus from $400 to $500. Preferred Card holders also receive an additional 7% annual bonus, further increasing their rewards return rate.
There are also options to transfer points to a few other programs such as United, British Airways, Amtrak, and several hotel programs. Finally, the Preferred card does not have a foreign transaction fee. The standard card has a 3% fee on all foreign transactions, but Chase waives this fee on the Sapphire Preferred Card. This is a great value add that international travelers can benefit from significantly, as $3,000 of spend internationally can translate into $90 of transaction fee savings compared to most major credit cards.
Final Thoughts on Chase Sapphire Offers
For most consumers, the no annual fee Chase Sapphire card likely offers the best value. While earning potential is slightly lower with the regular Sapphire card, the lack of an annual fee can more than offset the bonus earning opportunities you get with Sapphire Preferred. Plus, the 10,000 free points is a very generous offer, especially for a card with no annual fee. The only comparable offer is available on two Citi Thank You Card promotions, one of which offers up to a $250 bonus and the other a $150 bonus.
Lastly, one of the key benefits of Chase Sapphire that is difficult to quantify is customer service. I personally use the no annual fee Chase Sapphire Card and love the fact that when I call customer service, a person answers. Seriously, a real live person. This is a truly unique benefit and one that anyone who is frustrated with typical credit card customer service will come to appreciate. Combine this with a generous sign up bonus and the top notch Ultimate Rewards program, and you’ve got one of the better rewards cards on the market today.
You can learn more and apply for the no annual fee Chase Sapphire ® Card with 10,000 Ultimate Rewards points here or learn more and apply for the Chase Sapphire Preferred ® Card with 40,000 Ultimate Rewards points here.
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About the author
Jeffrey Weber has been following and blogging about the credit card industry since 2004. He has also written for Forbes and been cited in a wide range of major media outlets including USA Today, Time, MSN Money, The Christian Science Monitor, The Detroit Free Press and numerous other prestigious online and print publications.
Jeffrey resides in Easton, Connecticut and enjoys spending his free time chasing after his two year old son, watching films with his wife and occasionally taking a holiday to go snorkeling.
Jeffrey Weber – has written 65 posts.
{ 7 comments… read them below or add one }
I tried to upgrade to the Preferred Sapphire just because i wanted to get no foreign transaction fees (i was put on a project for work abroad and planned to travel for myself). I was told that if you have the regular sapphire you must wait 1 year to upgrade to the preferred. If you want it faster you need to apply for the preferred on its own, get approved and then merge the account. Just figured this would be helpful for some.
PS- as an added tip, the lady told me not to close my regular sapphire first, but to apply for the preferred and then get them merged. Apparently its a better chance for approval than closing first.
Alex,
Thanks for sharing this tip. Given the 50,000 Ultimate Reward point bonus offered on the Sapphire Preferred card, sounds like this should work out well for consumers.
If I choose to get the Chase Sapphire Preferred… can I downgrade to the regular Chase Sapphire at anytime?
Sarah,
If it turns out that you are unsatisfied with the Sapphire Preferred card, I doubt Chase would prevent you from swapping cards – they are building up the rewards programs to keep customers satisfied over the long term and I’m sure they’d rather keep you as a member than lose your business.
Can you use your points on any airline?Is there any charge for booking through ultimate rewardsSM?Does my starting date start when i recieve my card or when i call & activate it?
Charles,
Just about every airline is available through Ultimate Rewards. I think Southwest may be the sole holdout, as they are not on any travel comparison sites.
Regarding fees, I believe it is the typical $5 or so that is charged on any travel site – i.e. travelocity, orbitz, priceline. There are no sneaky, gotcha fees that make booking travel through Ultimate Rewards lest cost-effective than any of the sites I mentioned.
As to your third questions, I am not entirely sure. It is either the date the card was issued or the date of activation. I’m inclined to believe it is the issuing date, though either way there would only be a three to five business day lag between these.
Hope this resolves your concerns and do let me know if you have any further questions.
Sophie,
Unfortunately, the Chase Sapphire 50,000 point promotion is limited to new card-members only. I have a regular Sapphire card which I applied for to test out before reviewing it for visitors and when this deal came out, I got on the phone and tried to get an upgrade. They would let me change to the Sapphire Preferred card, but I couldn’t get the 50,000 Ultimate Reward point bonus or the first year annual fee waived, so I didn’t bother upgrading.
I had the same issue when I went to upgrade my Blue Cash card to the new American Express Blue Cash Preferred Card. They wouldn’t give me the bonus or waive the annual fee. I think this is pretty much true with all credit card companies when it comes to these promotions.
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