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For some reason the Chase Sapphire Preferred is the darling of the points & miles world. I personally liked the card, but didn’t see the benefit in paying the annual fee this past year and downgraded it to a Freedom card. (Freedom’s rotating 5x point categories and $0 annual fee make it a better card in my opinion.)
Last week it leaked that Chase was getting rid of the annual 7% points dividend on the Sapphire Preferred along with adding the benefit of primary car insurance. Via The Points Guy, today they released a full list of changes and they aren’t good.
Upcoming Changes to the Chase Sapphire Preferred
Here is a list of the upcoming changes to the benefits of the card.
- Loss of the 7% annual points dividend as reported last week.
- Pay yourself back with points is being discontinued. You can still supposedly cash in points for $.01 each if you have a Chase checking account. (Redeeming Ultimate Rewards points for cash is almost never a good idea.)
- Card no longer earns an additional 1 point per dollar when booking travel through the Ultimate Rewards portal.
- Loss of two points per dollar on travel???? (The original post at The Points Guy mentioned the card losing this benefit, but I don’t see mention of it on Chase’s site and he has since edited his post.)
Chase has listed all of the upcoming changes along with detailed explanations on their website.
While I don’t believe the Chase Sapphire Preferred card is losing its category bonus of 2x points on travel as was originally reported, the changes are still mostly negative. In my opinion this card just doesn’t warrant the annual fee considering it can easily be downgraded to a Freedom.
One of the best benefits is being able to transfer points to travel partners & my Chase Ink card does that. The 2x points on travel are nice as well, but I just don’t spend enough in that category to cover the cost of the annual fee. With that said, primary car insurance can be useful if you already have the card and the sign up bonus is fantastic as well.
What do you think? Is the Chase Sapphire Preferred card worth keeping after the first year?
Miles to Memories has partnered with CardRatings for our coverage of credit card products. Miles to Memories and CardRatings may receive a commission from card issuers.