No one can accuse Chase of not being a generous credit card company these days. Many Chase credit card offers come with lucrative signup bonuses ranging from $50 to 25,000 frequent flyer miles. But these offers pale in comparison to the Chase Sapphire Preferred credit card’s unprecedented 40,000 Ultimate Reward point sign up bonus. At the very least, this Chase promotion is worth a whopping $400. If the Chase Ultimate Rewards are used for travel, this incentive is worth an even more impressive $500, as there is a 25% bonus applied when Chase Sapphire Preferred cardholders redeem points for travel rewards.
Getting the Chase Sapphire Credit Card Bonus
In order to get your hands on the 40,000 Ultimate Reward points being offered on the Chase Sapphire Preferred Card, you must simply apply for the card – it is not available to current cardholders – and spend $3,000 within three months of opening an account. The $3,000 spending requirement is higher than most required to earn credit card sign up bonuses, but the $400-$500 reward is also four to five times higher than what even the most generous cards are offering. Plus, it only takes $1,000 of spending per month to earn the Sapphire Preferred’s $500 bonus.
In order to meet the spending requirement, use your Chase Sapphire card to pay for everything: gas, groceries, utilities…. Most families can easily meet this target. Just be sure to pay your bill in full every month to avoid interest charges and you’ll make out like a bandit. You can review the card details below:
Maximizing the Value of Your Chase Sapphire 40,000 Point Bonus
Once you satisfy the $3,000 spending requirement, you can opt to redeem your 40,000 Ultimate Reward points for a $400 statement credit, a $400 check or $400 in gift cards from a range of top tier merchants. This is the no hassle approach, though not the most profitable.
The key to getting the most out of your Ultimate Reward points is to use them to book a trip on the Chase Ultimate Rewards travel platform. As a Chase Sapphire cardholder, I’ve tested the system and found the results to be nearly identical to major travel sites like Orbitz.com or Travelocity.com. Thus, armed with 40,000 Ultimate Rewards points, you can book a flight or hotel and realize a $500 reduction in cost. This is really a great deal and if I were not a cardholder already, I’d sign up for this today. (I called in to see if I could qualify by upgrading my current Sapphire card, but was denied.)
Final Thoughts
There are really only two drawbacks to the Chase Sapphire Preferred card. The first is the annual fee of $95. However, there is no fee the first year, so you get a full year to decide whether or not you are happy with the Sapphire Preferred card. Plus, if you account for the Sapphire card’s $500 bonus, there is essentially no annual fee for six years. The second drawback is the lack of a 0% introductory offer. If you have credit card debt or will be taking on new debt, you may be better off focusing on paying down debt with a 0% APR balance transfer credit card.
Despite these limited drawbacks, the Chase Sapphire Preferred card is definitely worth trying out. No other credit card company will pay you $400 to $500 just to test out their product, so if you’re in market for a rewards card, this is definitely the best option available today, as it offers a remarkable sign-up bonus and is tied to an industry leading rewards program.
Update April 5th 2012: For those who don’t want to pay an annual fee, the standard Chase Sapphire card is now offering a 10,000 bonus point promotion. This new deal is worth $100 and is among the best offers available on a no fee rewards credit card that uses a flexible point system