By: Michael Esparza

The Chase Sapphire Preferred card is a premium credit card that offers flexible rewards on travel, dining, and other categories. The card also comes with several perks and benefits that can enhance your travel experience and protect your purchases. But is the card worth the $95 annual fee? Here are some pros and cons to help you decide.

Pros of the Chase Sapphire Preferred Card

Generous welcome bonus: The card offers a welcome bonus of 60,000 points after you spend $4,000 on purchases in the first 3 months from account opening. That’s worth $750 toward travel when redeemed through Chase Ultimate Rewards, the online portal where you can book flights, hotels, car rentals, cruises, and more.

You can also transfer your points to one of the 13 airline and hotel partners, such as United, Southwest, Hyatt, and Marriott, at a 1:1 ratio. This can potentially increase the value of your points, depending on how you use them.

High rewards rate: The card earns 5 points per dollar on travel purchased through Chase Ultimate Rewards, excluding hotel purchases that qualify for the $50 Annual Ultimate Rewards Hotel Credit. You can also earn 5 points per dollar on Lyft purchases (through March 2025) and on Peloton equipment and accessory purchases of $150 or more (through March 2025, with a limit of 25,000 bonus points).

You can earn 3 points per dollar on dining, including eligible delivery services, takeout and dining out, online grocery purchases (excluding Target, Walmart, and wholesale clubs), and select streaming services (Apple Music, Apple TV, Disney+, ESPN+, Fubo TV, Max, Hulu, Netflix, Pandora, Paramount+, Peacock, Showtime, SiriusXM, Sling, Spotify, YouTube Premium, YouTube TV and Vudu).

You can earn 2 points per dollar on other travel purchases, and 1 point per dollar on all other purchases. Chase Ultimate Rewards points are flexible and valuable, as they can be redeemed for travel, gift cards, statement credits, or transferred to various airline and hotel partners.

Travel and purchase benefits: The card has no foreign transaction fees, which can save you money when you travel abroad. The card also offers baggage insurance, car rental loss and damage insurance, and access to the Global Assist Hotline. Plus, you can get up to $50 in statement credits each account anniversary year for hotel stays purchased through Chase Ultimate Rewards.

You can also get up to $10 in Uber Cash monthly, which can be used for Uber rides or Uber Eats orders in the U.S. Additionally, you can get a $100 experience credit with a minimum two-night stay when you book The Hotel Collection through American Express Travel.

Cons of the Chase Sapphire Preferred card

Annual fee: The card has a $95 annual fee, which is not waived for the first year. This means you need to spend enough on the card and use the credits and benefits to justify the cost. If you don’t travel or dine out frequently, you may be better off with a lower-fee or no-fee card that still offers rewards on everyday spending.

Limited bonus categories: The card only offers bonus points on travel, dining, online groceries, and select streaming services. If you spend a lot on other categories, such as gas, entertainment, or online shopping, you may not earn as many points as you would with a card that has more diverse bonus categories. For example, the Capital One Venture Rewards Credit Card offers 2 miles per dollar on every purchase.

Lower rewards value for non-travel options: The card’s rewards are best redeemed for travel, either through Chase Ultimate Rewards or by transferring to partners. If you prefer to use your points for other options, such as statement credits or gift cards, you may get a lower value per point. For example, 10,000 points are worth $100 in travel, but only $60 in statement credits or $70 in gift cards.

The Chase Sapphire Preferred card is a great option for travelers who want to earn and redeem flexible points for a variety of travel options. The card has a generous welcome bonus, a high rewards rate on travel and dining, and several perks and benefits that can save you money and enhance your travel experience. The card has a reasonable annual fee, but you need to make sure you use the card enough to offset the cost. If you are looking for a travel rewards card that can help you plan your next trip, the Chase Sapphire Preferred card may be the one for you. If you are interested in the Chase Sapphire Preferred card, visit https://www.referyourchasecard.com/6j/HJ6WDTQ56W to learn more.

By: Michael Esparza

If you have ever applied for a loan, a credit card, or any other form of credit, you have probably heard of the term FICO score. But what exactly is a FICO score and why is it important for your financial health?

A three-digit FICO score, often simply referred to as a credit score, is a numerical representation of an individual’s creditworthiness. It is a crucial financial metric that lenders, creditors, and financial institutions use to assess the risk associated with lending money or extending credit to consumers. The term “FICO” is an acronym derived from the company that developed this scoring model, the Fair Isaac Corporation.

FICO scores range from 300 to 850, with higher scores indicating better credit. A FICO score of 670 to 739 is generally considered good credit, while a score of 740 to 850 is considered excellent credit. Lenders use FICO scores to help them decide whether to approve your loan application and what interest rate to charge you. A higher FICO score can help you qualify for lower interest rates and better loan terms.

FICO scores are based on five main factors that reflect your credit behavior:

• Payment History (35%): This is the most significant factor in assessing whether you have made on-time payments on your credit accounts, such as loans and credit cards.
• Credit Utilization/Amounts Owed (30%): This factor examines the amount of credit you are currently using compared to your total available credit limits. Lower utilization rates are generally better for your score.
• Length of Credit History (15%): Longer credit histories tend to have a positive impact on your score.
• Credit Mix (10%): Having a diverse mix of credit types, such as credit cards, installment loans, and mortgages, can positively impact your score.
• New Credit (10%): Opening multiple new credit accounts in a short period can negatively affect your score.

Each factor has a different impact on your FICO score depending on your overall credit profile. For example, if you have a long and positive credit history, a few late payments may not hurt your score as much as if you have a short and negative credit history. You can check your FICO score for free once a year from each of the three major credit bureaus. You can also get your FICO score from many lenders and credit card companies.

Here are some tips for improving your FICO score:

• Pay your bills on time and in full every month.
• Keep your credit utilization low. This means using less than 30% of your available credit.
• Keep your credit history long. Avoid opening too many new credit accounts in a short period of time.
• Have a mix of different types of credit.
• Check your credit reports regularly for errors and dispute them if you find any.

A FICO score is a key indicator of your financial health and reputation. By understanding what it is and how it works, you can take charge of your credit and achieve your financial goals. Improving your FICO score can take time, but it is worth it in the long run. A good FICO score can help you qualify for lower interest rates on loans and credit cards, save money on insurance premiums, and get approved for apartments and housing. Maintaining a good credit score can open doors to better financial opportunities, while a poor score can limit access to credit and lead to less favorable terms and higher borrowing costs. Therefore, understanding and managing your credit responsibly is essential for your financial well-being.