Chase Sapphire Preferred: Price Hike on the Horizon? Is Now the Time to Apply?
Hey there, credit card enthusiasts! Philip here, and today we're diving into a juicy rumor swirling around the Chase Sapphire Preferred card. Word on the street is that this popular travel rewards card might be getting a price increase soon. Let's break down the details and figure out if you should snag this card now before any potential changes.
The Rumor Mill: $150 Annual Fee?
The buzz started with a report from Doctor of Credit, citing a Reddit user who claims a Chase phone representative confirmed the Chase Sapphire Preferred's annual fee will jump to $150, starting January 1, 2026. That's a significant increase from the current $95 annual fee.
Important Note: This is just a rumor based on a single data point. It's not confirmed, so take it with a grain of salt!
Adding fuel to the fire, Chase recently increased the Chase Sapphire Reserve's annual fee to a hefty $795. Given this, many have speculated that the Chase Sapphire Preferred was next for an increase.
What Makes This Rumor Interesting (and Potentially False)
What's unusual about this rumor is that the supposed annual fee increase isn't tied to any new or enhanced benefits. Typically, when annual fees go up, cardholders receive something in return, like boosted rewards or extra perks. The lack of any rumored benefit upgrades makes this price hike a bit suspect.
Should You Get the Chase Sapphire Preferred Now?
Here's the big question: Should you apply for the Chase Sapphire Preferred now, before the potential annual fee increase? Let's weigh the pros and cons:
Current Benefits:
Sign-Up Bonus: Currently, you can earn a solid 75,000 bonus Ultimate Rewards points after spending $5,000 on purchases within the first 3 months of account opening. While not the highest offer we've seen (it briefly hit 100,000 points!), it's still a valuable bonus.
$95 Annual Fee: For now, the card still has its reasonable $95 annual fee.
$50 Annual Hotel Credit: You'll receive a $50 statement credit each year for hotel stays booked through Chase Travel.
The Calculus:
Apply Now: Lock in the lower $95 annual fee and the current 75,000-point bonus.
Wait: Risk the potential $150 annual fee, but maybe a higher sign-up bonus will be offered in the future to compensate. It's a gamble!
A Look at the Chase Sapphire Preferred's Perks
Even if the annual fee does increase, the Chase Sapphire Preferred offers a compelling package of benefits:
5x Points on Chase Travel: Earn 5 points per dollar on travel booked through the Chase Travel portal.
3x Points on Dining: Get 3 points per dollar on dining purchases, perfect for foodies!
3x Points on Online Groceries: Earn 3 points per dollar on online grocery purchases (excluding Target, Walmart, and wholesale clubs).
3x Points on Select Streaming Services: Get rewarded for your streaming subscriptions!
2x Points on General Travel: Earn 2 points per dollar on all other travel purchases.
10% Anniversary Points Bonus: Each year, you'll receive bonus points equal to 10% of your total spending from the previous year.
Solid Travel Protections: As a Visa Signature card, the Chase Sapphire Preferred offers decent travel protections.
5x points on Lyft Rides and Peloton Equipment: This is great for people who use these often.
Visa Benefits: No foreign transaction fees.
Key Travel and Purchase Coverage Highlights:
Trip Cancellation/Interruption Insurance: Reimbursed up to $10,000 per covered traveler.
Baggage Delay Insurance
Travel and Emergency Insurance
Purchase Protection: Covers new purchases for 120 days against damage or theft (up to $500 per item).
Auto Rental Collision Damage Waiver: This provides reimbursement up to $60,000 for theft and collision damage for most rental vehicles.
The Bottom Line
The Chase Sapphire Preferred is a solid travel rewards card with valuable benefits. The potential annual fee increase adds a layer of uncertainty, but the current sign-up bonus and the card's earning potential make it worth considering, especially if you value travel rewards and dining perks.