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Why I’m Done With The Chase Sapphire Preferred Card After This Year

Chase Sapphire Preferred Credit CardThis post is all based on my own opinion.

I have had the Chase Sapphire Preferred credit card for almost 5 months now and everywhere I go, everyone still has to make a comment about it. YES its heavy! I’m tired of hearing that! YES its the most unique credit card you have ever held! I am so tired of hearing that as well! Good job Chase for making a metal credit card so that everyone can ask me where I got it, how I got it.. good job at marketing the credit card everywhere I go… but seriously it gets annoying. Its like I’m a personal commercial for Chase every time I use my card.. I don’t get rewarded enough for that!

Whenever you get a credit card for the rewards, you have to always realize that the credit card company is enticing you to sign up for a reason. Sure they will waive the first year fee of $95 and sure they will give you 40,000 bonus points just for signing up, but is it really worth sticking around after the first year? The credit card company has one goal.. to make money.

My first year is free and I got my Chase Sapphire Preferred card with 50,000 bonus points, that means I got $500 just by registering and meeting their minimum spending requirement of $3,000 within the first 3 months. But now that Ive got the $500 and have already spent it, what other benefits are there? They give you a 7% annual bonus for however much you spend the year prior.

As an example, if you spent $10,000 on your Chase credit card the previous year, you would earn 700 extra bonus points (7%) at the start of your next year. Chase values their rewards points at 1 cent each, which means you just made an exciting $7 bonus and you also just paid $95 for the next year to use that card.

Every 10,000 points earned gets you an extra $7 in rewards. Remember though that the first 10,000 points earned is equal to $100 in rewards. The $7 extra would be credited after your year is up. Just to get $95 in ‘extra’ rewards to cancel out the yearly fee, you would need to earn $95/$7 x 10,000 = 135,714 rewards points in that year, or about $135,714 worth of spending on one credit card!

This does not take into account the bonus points you earn for spending at specific vendors. Dining out and booking travel earns you 2 rewards points per dollar spent. Shopping at the Chase Ultimate Rewards mall earns you 10 points per dollar spent. For me this is completely worthless. I would rather take my spending to another credit card that offers better rewards or better redemption offers.

The American Express Membership Rewards program is one of the best rewards programs that I belong to. Who else offers transfer bonuses? I know that having AMEX rewards points, I can transfer them to British Airways and receive a 50% bonus, depending on if the airline is offering a transfer bonus and what their current offer is.

Delta had offered bonus transfers as well, which I have earned between 20%-50% more air miles just by transferring my AMEX points to my SkyMiles account. How do you think I flew my family to Alaska for free? If you are patient and can wait for these transfer bonuses (no guarantee that they will be offered in the future), then having an American Express rewards card is well worth it.

So why would I be willing to pay a yearly fee and not pay the Chase Sapphire Preferred fee? If you think about it, there are no other benefits for owning this credit card. Does it give me free luggage when I travel? Sure they will give you double points for buying an airline ticket, but honestly, so does any other airline credit card. For instance the Gold Delta American Express credit card gives me free luggage for up to 9 people in my party. Every time my wife and I fly on Delta we never pay for our luggage. This saves us $100 every time we fly.. the cost of the yearly fee! We also earn airline miles for any tickets we buy, we get 20% off anything on our Delta flights and we would pay the same $95 yearly fee.

You have to determine if you are into rewards for travel or for ‘merchandise’. If you want to travel, then get an airline credit card that also offers a bonus. If you want to purchase merchandise them Chase or American Express have a large number of products or gift cards you can redeem for your rewards points.

Since my wife and I love to travel, the Chase Sapphire Preferred credit card is not for us.

Agree or disagree? Let me know!

Related posts:

  1. Should You Get The Chase Sapphire Preferred Card Now?
  2. How The Chase Sapphire Credit Card Saved Us $600
  3. Another Chase Sapphire Preferred Credit Card With 40,000 Bonus Points
  4. Two 1st Class Tickets, 6 Night Hotel Stay, 6 Day Car Rental For $316

About Derek

I currently live in beautiful Alaska with my wife! Living in Alaska i have learned that it cost so much more just to travel anywhere! In order to fly anywhere it cost us an extra $250+ a ticket. We use miles and points to fly nearly everywhere for free, usually in First Class. You can also follow me on Twitter or Facebook or why not signup to receive new blog post via email or in RSS reader
  • Jack Straw

    The no fee currency exchange charge on Chase Sapphire card has saved me hundreds of dollars (3% of charges) every year

    • http://www.thepointsguide.com/ ThePointsGuide

      Yes the no transaction fee is good with Chase, but American Express’s Platinum card also has the no foreign transaction fees, although at a higher cost per year for the annual fee.

  • Mark

    Chase Freedom + Chase Sapphire Preferred + Chase Checking = Best Rewards

  • Hpalexa

    If you want you can ask them to send you a plastic card instead of the metal one.

    • http://www.doctorofcredit.com/ doctorofcredit

      I never knew this, do you have a picture of the plastic card?

  • Will

    Would you mind explaining to me, why did you calculate the minimum $ spend to cancel out the $95 fee that way? Please feel free to correct me if im wrong, as I am still new and learning all the things about miles. But here is the way I see it. $95=9500points=$9500 spending (not to mention the 2X point on travel and dining); and if we factor in the 7% annual bonus -> $8878 -> N X 107/100 = 9500 points -> 107N = 950000 -> N = 950000/107 -> N = 8878 points

  • Chasefan

    Chase Sapphire also makes your points worth 20% more when you redeem them for travel/hotel/etc. i.e. You only need 40,000 points for $500 of travel.

    • Sapphire fan

      Meaning that if you earn 38,000 points in a year (which is relatively easy with all the multipliers), you automatically have made your $95 back, if you use your points on travel.

  • Chasefan

    So you’re saying that with Amex, you’d need 2 separate cards (Platinum & Gold SkyMiles) to match what Chase does with just the Sapphire. Also, Chase gives you the benefit of using any airline, not just the one that the card is for (e.g. Delta).