Is the Chase Sapphire PreferredÂ^® metal?

The Chase Sapphire Preferred^® card is one of only two metal cards in Chase’s line-up, as well as one of only several metal cards in the entire market with other offerings coming from American Express^®, Mastercard, and even Apple. Metal cards are an outward sign of exclusivity, but even for those unconcerned with status symbols, metal cards can bring stellar rewards and favorable rates, if you are willing to spend on the annual fee. So, in this busy field, how does the Chase Sapphire Preferred card stack up?

Rewards

Upfront, the Chase Sapphire Preferred is more generous to new cardholders than the Chase Sapphire Reserve^® card. Offering 60,000 bonus points, rather than 50,000 bonus points, for the same amount of prerequisite spending ($4,000 in the first 3 months) provides Preferred cardholders with greater opportunities up front to save on travel or dining. But, over time, the Reserve card provides 3x points on travel and dining expenditures, whilst the Preferred card only gives 2X points on the very same travel and dining expenditures, both providing 1X points on all other purchases. The Preferred card also provides 25% more value when redeeming airfare, hotels, cars and cruise rentals. Moreover, if you are a DoorDash subscriber, the Preferred card lets you enjoy unlimited deliveries with no delivery fee and reduced service fees on orders over $12. Similarly, you can 5x points on Lyft rides through March 2022 with the Preferred card. Thus, the “better” choice ultimately depends on your anticipated uses for your rewards. If you are looking to save as much money as possible for a once-in-a-lifetime family vacation in the next 6 months, then the Sapphire can help you with cost-cutting, but if you are hoping to be compensated for a lifetime of flights and fine dining, then the Reserved card is a better choice.

In comparison to the newest card to the market, the Apple Card, the Chase Sapphire Preferred offers more flexibility in cardholder benefits, but those points may not be worth the same amounts. Though the boosted rewards for Chase Sapphire Preferred are just for food and travel, those are very broad and widely used fields, while the Apple Card offers rewards on a specific portfolio. The Apple Card gives 3% cash back on purchases made directly with Apple, on things like Apps or new iPhones, as well as purchases with Uber and UberEats, Walgreens, T-Mobile or Nike. Furthermore, cardholders gain 2% cash back on purchases made with Apple Pay, and 1% cash back on all other purchases. These rewards seem a little too Apple-centric, but they can certainly rival those of the Chase Sapphire Preferred. Apple Pay essentially allows you to pay online, and at many physical retail locations, which can match much of the value that one might get for 2x points from buying plane tickets or food. As 2x points is essentially 2% cash back, if you are someone that likes to shop online, and is willing to rely on Uber Eats for a lot of your dining, Apple Card can give you more bang for your buck. 

Similar comparisons can be made with the MasterCard Black Card and the Capital One Savor Cash Rewards Card. The Black card offers a flat, 1.5% cash back on all purchases made with the card outside of air travel, which can give 2% cash back, and the Savor card can give 4% cash back on food and entertainment, 2% on groceries and 1% on all other purchases. Furthermore, American Express’s main metal card options, the Platinum card and the Gold card, both include similar point schemes. The Platinum card offers 5x points for all flights and travel, with 1x points on all other purchases, and the Gold Card offers 4x points on the first $25,000 spent on food, 3x points on all flights and travel and 1x points on all other purchases. While these seem like an objective leg up, it is important to remember that Amex points famously equate to around 0.6% cash back, so the value that you receive may not be all that it is cracked up to be.

Rates

In the Chase family, the Preferred card offers better rates than the Reserved, with the Sapphire sporting a variable APR ranging from 15.99%-22.99% and the Reserved having a modestly higher 16.99%-23.99%. So, even if there are more points that come with the Reserved, buyers should beware, especially if their credit is low, because their higher rates could offset their net gains on the account. 

Furthermore, the Apple card offers variable APR rates from 12.49%-23.49%. Though the range is wider, the Apple Card can have incredibly favorable rates for those with the strongest credit history, as compared to the Preferred card. The MasterCard Black card has a flat 14.99% that varies with the Prime Rate, and the Capital One Savor Cash Rewards Card offers a higher range, from 15.99% to 24.99%. Finally, the Amex Gold card directly mirrors the rates of the Preferred (15.99-22.99%), and as such can be just as attractive. For those with nearly flawless credit, you would likely have better luck with the Apple Card, but beyond this it will take considerable discretion about the risks you are willing to take.

Annual Fee

The annual fee is where there is another clear delineation between the Chase Sapphire Preferred and the Chase Sapphire Reserve card. The Preferred card is a lot cheaper, only charging $95/year, while the Reserve card charges a whopping $550/year. Thus, paired with the rate increase, the Reserve card can really be a burden on the cardholder’s wallet if they are not active and intelligent with how they redeem their excess rewards.

There is a similarly wide variation in annual fees amongst other metal credit cards. The Apple Card has no annual fee, while the Savor card carries a $95 fee, and the MasterCard Black has an incredibly $495 fee! Then, in true Amex fashion, the Platinum card has a $550 annual fee, and the Gold card runs up $295 per year. A good portion of these fees can be worked off with rewards and statement credits, but cardholders should still understand the exact impact that these will have on their wallets.

Pros and cons 

Pros

• Better rewards the standard card on travel and dining 
• Ability to transfer points to Chase travel partners at a 1:1 rate
• Travel and shopping protection
• Trip cancellation insurance, baggage delay insurance and purchase protection for 120 days for up to $500 per claim and $50000
• No foreign transaction fee 
• 24/7 access to customer service 

Cons

• No introductory APR offer
• $95 annual fee isn’t cheap
• May not be worth the cost if you are planning to spend less than $4000 in the first three months 
• Best rewards are through travel expenses or transfers. Therefore, it may not be the best card for you if you do not travel often enough. 

Conclusion

There is really no clear winner amongst metal credit cards, but the Chase Sapphire Preferred card certainly can meet the needs of many cardholders. With an attractive annual fee, and a reasonable APR rate for those with strong credit, the rewards that you get can make the offering overall much more valuable. The card also offers incredible flexibility in how you redeem your rewards, which can truly fit many different lifestyles, and ultimately help the cardholder save money in the process. You can apply for the Chase Sapphire Preferred card online here. If you're more interested in the Sapphire Reserve, you can apply here.