Chase has just rolled out major changes to its popular $95 annual fee Sapphire Preferred Card, shaking up the credit card rewards landscape. The updates, announced this week, bring a mix of new perks and some less favorable tweaks, making it crucial for current and prospective cardholders to reassess the card’s value.
Our Take
Mixed. These changes are a double-edged sword: some cardholders will see real added value, while others may find the updates less rewarding or even a step back. For those who maximize the new benefits, the card remains a strong contender, but casual users should review the details closely before deciding to stick around.
What Changed
- Major updates to the Chase Sapphire Preferred Card, impacting both benefits and potential costs (effective immediately)
- Specifics on earning rates, redemption options, and annual fee structure have been adjusted (details not fully disclosed in the initial announcement)
- Some changes are positive, while others may reduce the overall value for certain cardholders
Who Benefits Most
- Frequent travelers who maximize bonus categories: If you consistently spend in the Sapphire Preferred’s top earning categories, you’ll likely see more points—worth up to 2.05¢ each by our valuation, making $10,000 in annual spend potentially worth ~$205 more in rewards.
- New applicants seeking a top-tier welcome offer: The current 100,000-point bonus (worth ~$2,050 at our valuation) is an all-time high, making now an excellent time to apply if you can meet the $5,000/3mo spend.
- Cardholders who redeem through Chase travel partners: If you transfer points to partners like Hyatt or United, you can squeeze even more value from your rewards, especially with the new earning structure.
- Travelers who use the card’s travel protections: Enhanced or expanded travel insurance benefits could save hundreds in case of trip delays or cancellations.
Who Should Be Cautious
- Casual spenders: If you don’t regularly use the bonus categories or travel benefits, the changes may not justify the $95 annual fee.
- Those who preferred the old structure: If you valued specific features that have been reduced or removed, you may find the new version less appealing.
- Cardholders averse to change: If you dislike adapting to new earning or redemption rules, consider whether the Sapphire Preferred still fits your needs.
What To Do Right Now
- Review your recent spending to see if the new bonus categories align with your habits.
- If you’re considering applying, act while the 100,000-point bonus (worth ~$2,050) is still available.
- Compare the Sapphire Preferred’s new benefits with alternatives like the Chase Sapphire Reserve to ensure you’re maximizing value.
- If you’re unhappy with the changes, explore product change or downgrade options within Chase’s portfolio.
