Chase has got a new offer for their Sapphire Preferred card with an extra tier of bonus points to entice more spending on the card.
- You’ll earn 50,000 Ultimate Rewards for spending $4,000 on the card within three months of opening it (this is the standard offer, only difference is there is no extra 5k bonus for adding an authorized user)
- You’ll earn an additional 30,000 Ultimate Rewards for spending $20,000 on the card within the first year of opening it
The annual fee of $95 is also waived for the first year in this offer like it is in the standard offer.
That’s a total of 80,000 bonus Ultimate Rewards for spending $20,000 in a year. Counting the Ultimate Rewards you’ll get for the spend it takes to unlock the bonus, the minimum amount of points you’ll end up with is 100,000 before category bonus points. Taking into consideration the 2x category bonus for travel and dining purchases, I’m sure you’ll end up with over 100,000.
Credit card links have been removed from posts and added to the menu bar at the top of every page of MileValue under the heading Top Credit Cards. I do get commissions when you sign up for some cards, but not for this specific offer. I just want you to be aware of the best deals.
Should I go for it?
I value Ultimate Rewards (when transferred to airline loyalty programs for redemptions on flight awards) at 2 cents each. Conservatively (without considering points earned from category bonuses) and using 2 cents as the valuation for an Ultimate Reward point, your average return from the first year of spending would be 10%. That’s very high for one card.
Who this Card Offer is Ideal For
$20,000 outright sounds like a lot of spending, but broken down over a year is only $1,667 per month. From what I’ve seen helping people choose the best cards for their specific travel goals through my Free Credit Card Consultation Service, $1,667 per month is doable for the majority.
If you’re new in the miles and points game–no doubt the Chase 5/24 rule applies to this offer–and want to start by dipping your toe in the water, this card and specific sign up bonus offer is a solid option.
- 5/24 rule = Once you’ve opened five credit cards from any bank in the last 24 months (not counting most business cards as they don’t show up on your personal credit report), Chase will deny you for the majority of their lucrative travel rewards credit cards
Many of us are cut off by 5/24, and/or just wouldn’t want to dedicate that much spending to one card when you could open various cards for various sign up bonuses and average a much higher return than 10%. But the idea of juggling multiple new cards might intimidate you. If it does, then I recommend applying for this offer.
If You Already Have the Sapphire Reserve, Don’t Apply
Don’t forget that we are limited to holding one Sapphire product at a time now by Chase, so once you have the Sapphire Preferred you won’t be able to apply for a Sapphire Reserve (not, at least, for 24 months after you earned the bonus on the Sapphire Preferred, and you’d need to close your Sapphire Preferred first). Read more in NEW CHASE RULE: Only One Sapphire Product Per Customer if you have questions.
If the earning rates and benefits package with the Sapphire Reserve are more appealing to you but you want this bonus offer, then I recommend upgrading to the Reserve once you’ve earned all of the potential 80k bonus point.
Hat tip Mommy Points