A few months ago, Chase surprised us all by upping its welcome offer for their Chase Sapphire Preferred Credit Card. With this offer you’ll receive an incredibly high 80,000 bonus points — the highest offer we’ve ever seen to date. And with Chase Ultimate Reward points valued at about 2 cents a point, this is worth $1,600 towards travel. However, if you’ve been meaning to apply for this card, you’ll want to act soon as the sign up offer is ending on Nov. 8. 2020.
Welcome offer: Earn 80,000 Chase Ultimate Reward points after you spend $4,000 on purchases in the first 3 months. $95 annual fee
For years, the Chase Sapphire Preferred Credit Card has been the No. 1 credit card that I’ve recommended for those starting out in the points and miles world. This is a great card for those who want a credit card that will help them earn points towards free travel at some point in the near future, but are not sure exactly where yet. This is ultimately a great flexible card with an amazing welcome offer, so a perfect card for those looking to dip their toes in the points and miles games or for those looking to increase their Ultimate Reward point balance. It is also a highly recommended card for families.
With that being said, the newly announced Chase Freedom Flex is also offering an up to 80,000 point bonus ($200 cash back — same as 20k points — plus 5% cash back on groceries) and does not carry an annual fee, so you might find that card to be better for your needs. The Flex card, however, only offers cash back and you need a premier card, such as the Sapphire Preferred to use your points towards travel. You can read about this new card here.
Earning Chase Ultimate Reward Points
With this card, you’ll receive 2x points on both dining and travel (including airfare, hotel, car rentals, cruises, etc.). With all other purchases you’ll receive 1x point. While there are some other cards that will earn you more in these categories, such as the Chase Sapphire Reserve Credit Card, the annual fee is significantly more expensive.
This is also a great card to use for airfare since it comes with 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 (and the most common protection) 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 as I mentioned above, this card does come with a significantly higher annual fee.
Redeeming Chase Ultimate Reward Point
When using your Chase Sapphire Preferred Credit Card 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 you get a 20% discount. 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, British Airways, Singapore Airlines, Air France KLM, Southwest Airlines, Virgin Atlantic, Iberia, JetBlue, Aer Lingus, Hyatt, IHG, and Marriott. Redeeming through a partner program will typically get you the most value for your points and all partners transfer at a 1:1 ratio. For example, Hyatt is a partner and you can stay at the Hyatt Regency Chesapeake Bay Golf Resort, Spa and Marina or Andaz San Diego for only 15,000 Hyatt points per night — thus requiring only 15,000 Ultimate Reward points. Both are great properties on opposite coasts.
Or, let’s say you prefer business class over economy (I mean who doesn’t, but you need to have the points or make a ton of money!), you can fly roundtrip Boston or Chicago to Spain for 68,000 Iberia points — again requiring 68,000 Ultimate Reward points. This business class flight can easily cost over $4,000 (something I’d never pay for!), making each point worth well over 5 cents per point! 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!
Now, if you find that you just aren’t traveling as much as you’d like and would prefer cash, you can always “cash” out your points for cash instead of using them for travel. You can cash out where 1 point = 1 cent. So 80,000 points, for example, would get you $800.
Who is Eligible for this Card?
Although a great offer, Chase has cracked down on allowing people to sign up for too many cards. For starters, there is the Chase “5/24” rule where if you’ve been approved for 5 or more cards in the past 24 months, Chase will automatically deny you of being approved for a new card. Also, they stopped allowing you to get multiple cards in the same “family”, i.e., if you already have the Chase Sapphire Reserve, they will not approve you for the Chase Sapphire Preferred.
Additionally, a few years ago, Chase put further restrictions on both the Chase Sapphire Preferred and Chase Sapphire Reserve cards. Chase will not longer approve you if you’ve received the sign up bonus offer in the past 48 months for the card. It used to be 24 months, so it the timeframe is doubled (and quite long in my opinion).
This is making getting the card harder, but since this offer is the new normal, there is no rush to get this card now. You can always get it at a later point when you become eligible.
This is definitely a favorite card amongst most and now with the increased sign up offer, definitely a card to put on your radar — and to act on sooner than later. I personally have had this card for years and it was definitely my go-to for quite some time, prior to getting the Chase Sapphire Reserve. But now with many other Chase Ultimate Reward options, this might not serve as the best go-to card for many purchases.
Stay tuned for a post coming soon comparing all of your Chase Ultimate Reward cards.
- Earn 80,000 bonus points after you spend $4,000 on purchases in the first 3 months from account opening. That’s $1,000 toward travel when you redeem through Chase Ultimate Rewards®.
- 2X points on travel and dining at restaurants worldwide, eligible delivery services, takeout and dining out & 1 point per dollar spent on all other purchases.
- Get 25% more value when you redeem for airfare, hotels, car rentals and cruises through Chase Ultimate Rewards. For example, 80,000 points are worth $1,000 toward travel.
- Get unlimited deliveries with a $0 delivery fee and reduced service fees on orders over $12 for a minimum of one year on qualifying food purchases with DashPass, DoorDash’s subscription service. Activate by 12/31/21.
- Earn 5X points on Lyft rides through March 2022. That’s 3X points in addition to the 2X points you already earn on travel.
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