A couple of weeks ago we saw Chase launch a fantastic new welcome bonus on the Chase Sapphire Preferred® Card. The card is now offering a welcome bonus of 60,000 Ultimate Rewards points after spending $4,000 within three months. The card has a $95 annual fee, and offers all kinds of great benefits.
How does this welcome bonus compare to the previous one?
Is this new bonus actually better? Previously the Chase Sapphire Preferred® Card offered a welcome bonus of 50,000 Ultimate Rewards points after completing minimum spend. The card has a $95 annual fee, though with the old bonus the annual fee was waived for the first year.
With the new bonus the annual fee isn’t waived for the first year.
Personally I value Ultimate Rewards points at 1.7 cents each, so to me the old welcome bonus was worth $850 (50,000 points x 1.7 cents).
I value the new welcome bonus at $925 (60,000 points x 1.7 cents – $95 annual fee).
So I consider the new welcome bonus to be worth $75 more than the previous welcome bonus, which is a significant improvement.
What are the benefits of the Chase Sapphire Preferred?
To me this continues to be one of the very best travel starter cards. The card offers:
- 2x Ultimate Rewards points on dining and travel
- Excellent travel protection
- Access to the excellent Chase Ultimate Rewards shopping portal
- The ability to transfer points to the Ultimate Rewards airline and hotel partners, or redeem them for 1.25 cents each towards the cost of a travel purchase
Those are some great benefits.
Unlock the full value of Chase Ultimate Rewards
Arguably the best aspect of the Chase Sapphire Preferred® Card isn’t even the card itself, but all of the excellent no annual fee cards that it allows you to maximize. For example, I have the following four no annual fee cards that earn Ultimate Rewards points in conjunction with either the Sapphire Preferred, Sapphire Reserve, or Ink Preferred:
- The Chase Freedom® Card offers 5x points in rotating quarterly categories, on up to $1,500 of spend per quarter; the card has no annual fee
- The Chase Freedom Unlimited® offers 1.5x points on everyday spend; the card has no annual fee
- The Ink Business Cash℠ Credit Card offers 5x points on the first $25,000 spent in combined purchases each anniversary year on cellular phone, landline, internet and cable TV services, plus 2x points on the first $25,000 spend in combined purchases each anniversary year on gas stations and restaurants; the card has no annual fee
- The Ink Business Unlimited℠ Credit Card offers 1.5x points on everyday spend; the card has no annual fee
So having the Sapphire Preferred would let you earn 1.5x points per dollar spent on the Freedom Unlimited or Ink Unlimited, 5x points in rotating categories with the Freedom, etc.
You can always still upgrade to the Sapphire Reserve
Nowadays the Chase Sapphire Reserve® has become a more popular option for many, as the card offers 3x points on dining and travel, and has an all-around rewarding structure.
Even for those who want to eventually get this card, it can still make a lot of sense to get the Chase Sapphire Preferred® Card the first year. That’s because the card has a better welcome bonus (60,000 points rather than 50,000 points), so you can always give the card a try and then later decide which card makes the most sense for you.
After a year you should be able to upgrade the Preferred to the Reserve.
The new 60,000-point welcome bonus on the Chase Sapphire Preferred® Card makes this card seriously worth considering. Not only is the bonus great, but this is also a great starter card if you’re looking to get into Ultimate Rewards. You can always upgrade the card to a Chase Sapphire Reserve® at a later point if you think that makes sense.