Chase Sapphire Preferred - Is It Worth It in 2025?

When you hear the name Chase Sapphire Preferred® Card is a mid‑tier travel rewards credit card that aims to turn everyday spending into airline miles and hotel points, the first question most people ask is: does the value you get outweigh the $95 annual fee? Let’s break down the numbers, the perks, and the kind of spender who actually benefits from this card in 2025.

Key Takeaways

• The sign‑up bonus still offers 60,000 Ultimate Rewards points after $4,000 spend in the first three months.
• Every $1 spent on travel and dining earns 2 points, while all other purchases earn 1 point.
• Transferring points to airline and hotel partners often yields a value of 1.25-1.5 cents per point.
• Annual fee of $95 is recouped after just a few trips if you redeem wisely.
• Best for moderate travelers who want flexibility without paying a premium fee.

What the Card Actually Offers

First‑time card‑holders get a 60,000‑point sign‑up bonus-roughly $750 in travel if you move the points to a partner airline. The bonus requires $4,000 in spend within three months, a threshold that most people hit with regular bills, groceries, and a few larger purchases.

Every purchase earns points in two buckets:

• 2 points per dollar on travel (including flights, hotels, rental cars, and public transit) and dining at restaurants.
• 1 point per dollar on everything else, from grocery bills to streaming services.

Points sit in Chase’s Ultimate Rewards ecosystem, which is famous for its generous transfer partners: United MileagePlus, Southwest Rapid Rewards, Singapore Airlines KrisFlyer, World of Hyatt, Marriott Bonvoy, and more.

Calculating the Real Value

Let’s say you spend $15,000 a year on the card, with $4,000 on travel/dining and $11,000 on other categories. Your reward breakdown looks like this:

1. Travel & dining: $4,000 × 2 points = 8,000 points
2. All other spend: $11,000 × 1 point = 11,000 points
3. Total annual earnings: 19,000 points

Add the 60,000‑point welcome bonus (assuming you meet the spend), and you end the first year with 79,000 points.

If you transfer to an airline that values points at 1.4 cents, those points equal $1,106 in flight value. Subtract the $95 fee, and you’re still $1,011 ahead-more than enough to cover a round‑trip domestic flight for two.

How the Benefits Stack Up

Beyond points, the card includes a few travel‑related protections that often go unnoticed:

• Primary rental car insurance covering collision damage waiver.
• Trip cancellation/interruption reimbursement up to $10,000 per year.
• Travel and emergency assistance hotline.
• Zero foreign transaction fees, which matters if you spend abroad.

These perks don’t carry a direct dollar amount, but they can save you hundreds on unexpected events.

Comparison With Other Popular Cards

If you’re not ready to splash $550 on a Reserve, the Preferred gives a solid middle ground: lower fee, still strong points, and enough flexibility to stay competitive.

Who Should Consider the Preferred

Look at your own spending profile. The card shines for three types of users:

• Occasional travelers who book a few flights a year and want a simple way to earn points without a high fee.
• Young professionals building credit who can meet the $4,000 spend threshold without stretching their budget.
• Point‑transfer enthusiasts who already have airline or hotel loyalty accounts and know how to extract value from the transfer partners.

If you never travel, or you already have a premium card with a higher travel credit, the Preferred might feel like extra baggage.

Potential Drawbacks to Watch

• The $95 fee, while modest, is still a cost you must justify each year.
• Points earn at 1 point per dollar on non‑travel spend, which is lower than many cash‑back cards offering 1.5-2 % back.
• To get the best redemption value, you need to transfer points to airlines or hotels; redeeming through Chase’s travel portal yields roughly 1.25 cents per point, lower than some partner transfers.
• Credit score requirement sits around 700‑720 FICO; if your score is lower, approval can be tough.

Tips to Maximize Value

1. Hit the sign‑up bonus fast. Put larger recurring bills (phone, internet, insurance) on the card to reach $4,000 quickly.
2. Charge travel and dining only. Use a low‑or‑no‑fee cash‑back card for groceries and gas; this pushes more spend into the 2× bucket.
3. Transfer strategically. When you can book a business‑class ticket for 70,000 points (instead of 100,000 via portal), you’re getting about 1.7 cents per point-a huge boost.
4. Leverage the rental insurance. Decline the rental agency’s coverage and let the card protect you; it’s free and often more comprehensive than the agency’s add‑on.
5. Combine with Chase Sapphire Reserve. If you already have a Reserve, you can pool points between the two cards, effectively turning the Reserve’s 3× earn into a 5× boost when you use both.

Should You Apply Today?

If you can comfortably spend $4,000 in three months, travel at least a few times a year, and you’re comfortable managing a 2‑point‑per‑dollar system, the Preferred is a strong contender. The math shows that even a modest redemption (1.25 cents per point) covers the $95 fee after a single round‑trip flight. For anyone on the fence, weigh the annual fee against the potential travel credit you’d earn by transferring points wisely.

Frequently Asked Questions

Bottom line: the Chase Sapphire Preferred remains a solid, flexible travel card for 2025. Its modest fee, generous bonus, and powerful transfer network give it a clear edge over many cash‑back cards for anyone who can squeeze extra value out of points.