The Chase Sapphire Preferred® Card is easily one of the top travel credit cards on the market today, and it’s also one of the best rewards credit cards for beginners.

This Chase credit card comes with a sign-up bonus of 60,000 bonus points after you spend $4,000 on purchases in the first three months from account opening. On top of that, recently the Chase Sapphire cards revealed some big improvements to their rewards systems.

Chase Sapphire Preferred cardholders now earn 5X points on travel purchased through Chase Ultimate Rewards and Lyft Rides (Lyft offer through March 2025), 3X points on dining (including eligible delivery services), 3X points on select streaming services and 3X points on online grocery purchases (excluding Target, Walmart and wholesale clubs). All of that is in addition to the 2X points the card already offers on all other travel and 1X points on everything else.

Another perk is a 10 percent anniversary point bonus. For each account anniversary, cardmembers will automatically earn bonus points equal to 10 percent of the total spend in points made in the previous year. Considering the variety of bonus categories, the anniversary bonus and the welcome bonus, the rewards you’ll earn can easily cancel out this card’s $95 annual fee. However, the exceptional travel redemption options offered are the real reason it stands out. If you don’t want to pay an annual fee, there are plenty of credit cards on the market that don’t charge one.

Once you have the Chase Sapphire Preferred, you can redeem your rewards for cash back, statement credits, merchandise and gift cards. You can also redeem rewards for travel through the Chase Ultimate Rewards portal, where you’ll get 25 percent more value from your points. In addition, this card lets you transfer points to popular Chase airline and hotel partners like United MileagePlus, Southwest Rapid Rewards and Marriott Bonvoy at a 1:1 ratio.

Popular Chase Sapphire Preferred benefits you probably already know about

In addition to its generous rewards scheme, plenty of other Chase Sapphire benefits make this card even more valuable to cardholders. Some of the perks this card offers are ones you may be familiar with already:

  • No foreign transaction fees on purchases made outside of the U.S.
  • Primary rental car insurance coverage good for up to the actual cash value of a vehicle for most rental cars within the U.S. and abroad
  • 5X points on Lyft rides through March 2025
  • Point transfers to popular airline and hotel partners, including British Airways, World of Hyatt, Emirates, IHG Rewards and JetBlue

Lesser-known Chase Sapphire Preferred benefits

There are so many benefits that come with the Chase Sapphire Preferred that it can be difficult to keep track of them all. Beyond the standout benefits this card offers, you’ll also qualify for plenty of lesser-known perks just by having the card in your wallet.

Annual hotel credit

You’ll receive a $50 credit on hotel stays purchased through Chase Ultimate Rewards after each cardmember anniversary. New cardmembers will start earning toward the credit immediately and existing cardmembers will start earning after their next account anniversary.

Partner benefits and other promotions

It helps to have friends in high places. Luckily, Chase has some great partnerships that Chase Sapphire Preferred cardholders get to take advantage of.

Through Chase Pay Yourself Back (CPYB), you can now get 25 percent more value for your points when you redeem them toward statement credits for purchases with Airbnb and Away (through made within the past 90 days. This offer is available until March 31, 2022.

Trip cancellation and interruption insurance

If you love to jet off to far-off destinations, then you’ll enjoy many of the Chase Sapphire Preferred’s travel benefits.

If your trip is canceled or interrupted for covered reasons beyond your control, trip cancellation and interruption insurance can reimburse you in amounts up to $10,000 per person and up to $20,000 per trip.

The cardholder and immediate family members are covered by this perk, and the cardholder doesn’t even have to be traveling in order to use this coverage. However, you do have to pay for any prepaid travel expenses with your Chase Sapphire Preferred card to qualify for this perk.

You can read through your credit card’s full terms to see what is and isn’t covered, but Chase notes that the following situations tend to be included in this benefit: accidental bodily injury, loss of life, sickness experienced by the cardholder, a traveling companion or an immediate family member of the cardholder or a traveling companion, severe weather that prevents the start or continuation of a covered trip, terrorist activity or hijacking and jury duty or a court subpoena that cannot be avoided.

This coverage comes with plenty of exclusions, too, such as preexisting conditions, a change in plans or any trip that is longer than 60 days.

Baggage delay insurance

It’s never fun to arrive at a destination without your luggage, leaving you with no choice but to purchase clothing, toiletries and other essential supplies. The baggage delay insurance this card offers reimburses you up to $100 per day for up to five days when a baggage delay of at least six hours occurs.

You must pay for your travel expenses with a common carrier using your Chase Sapphire Preferred card for this coverage to apply.

Trip delay reimbursement

If your trip is delayed for a covered reason that’s beyond your control, such as your flight being delayed once you’re already at the airport, you can qualify for coverage for unreimbursed expenses in amounts up to $500 per ticket. The delay must be for more than 12 hours or require an overnight stay. Note, this reimbursement is mostly intended for meals and lodging.

Like other Chase Sapphire benefits, you have to pay for travel expenses with a common carrier using your card for this coverage to apply.

Purchase protection

The Sapphire Preferred comes with purchase protection against damage or theft that can reimburse you when a covered item you purchased needs repair or replacement within the defined coverage timeline of 120 days. This coverage caps out at $500 per claim and $50,000 per account.

Note that this protection is good for items purchased by the cardholder and for items purchased by the cardholder but gifted to someone else.

Extended warranties

Finally, don’t forget about the Chase Sapphire Preferred’s extended warranty protection, which adds another year to the U.S. manufacturer’s warranty on eligible warranties of three years or less. This coverage is good for items that come with a standard manufacturer’s warranty to begin with, and you must pay for the item using your credit card for the extended warranty to apply.

The warranty amount is good for up to $10,000 in coverage per claim and up to $50,000 per account.

The bottom line

If you’re interested in a new rewards card that offers plenty of valuable benefits, the Chase Sapphire Preferred is a good pick. Make sure to compare this card to other Chase credit cards. Many offer similar cardholder perks and benefits, including some you might not be aware of. For example, the Chase Sapphire Reserve® offers even more types of coverage and perks you could benefit from compared to the Chase Sapphire Preferred.

Make sure to evaluate the pros and cons of each card as well as the overall requirements and benefits you may qualify for before you decide which card is right for you.