0I am constantly asked the question “Which credit card should I get?” And of course the answer is always “It Depends!”. It depends on your everyday purchases, the amount you spend per month on your credit card, how you like to earn and redeem your points, where you are looking to travel, etc. Typically there is much more of a conversation that needs to happen to recommend the right credit card. However, many people really just don’t know. They are just starting to dip their toes into the points and miles game. They want a credit card that will help them earn points towards free travel at some point in the near future, but not exactly sure when or where. A flexible card with a good sign up bonus is clearly the most desirable. My recommendation for this person is the Chase Sapphire Preferred® Card.
Top Reasons Why This is the Best Card for Starters:
1. Chase Ultimate Rewards points are extremely flexible.
When using your Chase Sapphire Preferred you are earning Ultimate Reward points. This currency is extremely valuable as you can either redeem your points through the Chase travel portal or transfer your points to partner airlines. When redeeming through the travel portal your points are worth 25% more. For example, a $500 flight booked through the portal will only cost you 40,000 points.
If you prefer to transfer your points to partner loyalty programs, you have many options which include: United, Air Canada Aeroplan, British Airways, Singapore Airlines, Air France/KLM, Southwest Airlines, Virgin Atlantic, Iberia, Aer Lingus, Hyatt, IHG, Marriott, Ritz-Carlton. Redeeming through a partner program will typically get you the most value for your points. For example, let’s say you prefer business class over economy. You can fly roundtrip Boston or Chicago to Spain for 68,000 Iberia points. This means you are spending just 68,000 Ultimate Reward points for this particular route. This business class flight can easily cost over $4,000. This is absolutely something I’d never pay for, but gives over 5 cents per point valuation. Of course the value of your points will vary on what you are looking to redeem for, but assume an average of 2 cents per point, with many opportunities to get an even higher value!
2. An amazing sign up bonus.
New applicants for the Chase Sapphire Preferred can receive a jump start of 75,000 bonus points on their account balance just from meeting the minimum spend requirement of $4,000 within the first three months. If you use the “pay with points” option through the travel portal, this equates to a decent amount of cash back towards travel — $940 with the current 75,000 point offer. Now, if you transfer to partner loyalty programs I typically see new cardmembers getting about even more value. At a valuation of about 2 cents per point, the 75,000 points are worth approximately $1,500 in my book. But of course, you can always get more value depending on how you use your points!
3. Increased points on many category purchases.
With this card, you’ll earn 2 points on travel (or 5 total points on travel purchased through Ultimate Rewards), 3 points on dining (including eligible delivery services, takeout and dining out), select streaming services and select online grocery purchases (excluding Target, Walmart and wholesale clubs).
Travel and dining specifically are two popular categories that can quickly increase your point balance, so getting a bonus on these purchases, is great. Of course if you have high spend in other categories, it is definitely worthwhile to get a card that has an increased category bonus for that particular category.
4. Great travel protection.
When you book a flight or other non-refundable travel expenses (hotels, tours, etc.) with select Chase credit card (which includes the Chase Sapphire Preferred), you get some great travel protection in case of a flight cancelation, delay, lost baggage, etc.
For example, if you have to cancel a trip due to a covered reason (sickness, severe weather, etc.) you are able to be reimbursed up to $10,000 per trip for pre-paid, non-refundable travel expenses. For lost luggage, you are covered up to $3,000 per passenger (which includes you or immediate family members). Or if your luggage is just delayed for 6+ hours, you can be reimbursed for toiletries and clothing at $100 a day for up to 5 days. And my ultimate favorite is if your flight is delayed more than 12 hours or requires an overnight stay, you are covered for unreimbursed expenses (i.e., meals and hotels) for up to $500 per ticket. (The Chase Sapphire Reserve has a slightly better flight delay policy where it only requires a 6 hour delay, but that card does come with a significantly higher annual fee.)
Overall…
The Chase Sapphire Preferred is an ideal card for those who are not sure where to begin. The flexibility is ideal and the points earned can be added to the other Chase Ultimate Reward family of cards.
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