So, everyone’s been asking about the chase sapphire preferred fee update lately. It feels like every other email I get is asking, “Is Chase going to raise the price again?” Honestly, I get it.
Banks love raising fees, and the Sapphire Preferred is one of their most popular cards.
But before you panic and cancel, let’s look at the actual numbers and the reality of the situation.
Current Annual Fee Status
As of right now, the annual fee for the Chase Sapphire Preferred card is still $95.
It hasn’t changed yet this year.
The last time the fee was adjusted was back in 2021 when it went from $95 to $55, and then right after that they bumped it back up to $95 again.
This pattern suggests they might be stabilizing it around this mark for a while, but nothing is set in stone.
Looking at the history, you might notice that the fee usually doesn’t jump every single year.
Sometimes it stays flat for a cycle or two.
It’s definitely a headache to keep track of, but as of today, you’re still paying that standard $95.
Is a Fee Hike Coming Soon?
I’ve been reading a lot of analyst reports and rumors lately, and the consensus is that a significant increase is possible but not imminent.
Some predictions have floated the idea of the fee moving up to the $120 or $130 range, especially if Chase decides to roll out new perks that justify the higher price tag.
But there’s a catch.
But, and this is important, Chase hasn’t officially announced anything yet.
Sometimes these rumors scare people into paying off balances or closing accounts that they actually love.
I’ve seen people make the mistake of cancelling a card right before a statement closes just to “save money” when the fee hasn’t even happened yet.
Don’t be that person.
Is the $95 Fee Actually Worth It?
Okay, let’s be real.
Paying $95 a year for a credit card is annoying, especially if you don’t travel much.
But the Sapphire Preferred isn’t just another piece of plastic; it’s a tool if you know how to use it.
The Real Value: Transfer Partners
From what I’ve seen in the credit card community, the only reason most people keep this card is the transfer partners.
This is where the magic happens.
- United Airlines: Getting 1.25 cents per point here is solid.
- Hyatt Hotels: This is the big one.
You can often get 1.5 to 2 cents per point, which makes the fee feel like a steal.
- Marriott: Good for booking standard rooms, though not the best value tier.
If you redeem your points directly for travel through the portal, you only get 1 cent per point.
That’s boring. And this is where things get interesting.
You want to transfer them.
That’s how you get the most out of your Ultimate Rewards.
Earning Back the Fee
Here is a little hack that most people overlook.
If you have the Chase Freedom Flex or the Freedom Unlimited, you can use the card’s 5% quarterly categories to pay off part of your Sapphire Preferred bill.
For example, if the category is “Dining Out” or “Gas” for the quarter, and you spend heavily there, you earn 5% cash back.
You can then use that cash back to cover the annual fee.
It sounds simple, but it effectively lowers your net cost of the card to zero or very close to it.
Chase Sapphire Preferred vs. But there’s a catch.
The Rest
Some people argue that the fee is too high compared to no-annual-fee cards.
You could get a Capital One Venture card or a Citi Double Cash and pay nothing.
But the difference is the transfer flexibility. And this is where things get interesting.
The Venture card is good, but you can’t transfer points to United or Hyatt.
So, if your dream vacation involves a specific airline or hotel chain, the Sapphire Preferred is usually the better tool.
It’s a specialized piece of equipment, not a general one.
What If You Don’t Travel?
If you just want to buy groceries and pay bills, the Chase Freedom Unlimited is a much better fit.
It offers 1.5% cash back on everything with no annual fee.
The Sapphire Preferred is strictly for the points junkies.
Final Thoughts on the Update
The chase sapphire preferred fee update seems to be mostly speculation at this point.
The card is still a powerhouse in the travel rewards world.
As long as the transfer partners remain competitive and the annual fee doesn’t jump to $150 overnight, it remains one of the best entry-level premium cards on the market.
My advice? Keep the card open if you travel, but make sure you’re actually redeeming your points for value.
Otherwise, you’re just burning money.
Image source: pexels.com
Image source credit: pexels.com