Potential Fee Increase for Chase Sapphire Preferred Card
For more than a decade, the Chase Sapphire Preferred card has been a standout in the travel rewards scene. With an annual fee of just $95, it has offered valuable travel benefits. Recently, even with the addition of a $50 hotel credit for bookings, the annual fee remained unchanged.
While it’s uncertain what will happen tomorrow, there’s a growing feeling that a change is on the horizon. I can’t shake the notion that it’s looking increasingly likely that the annual fees for the Chase Sapphire Preferred card will rise.
Just last month, Chase introduced a refreshed version of its premium card, the Chase Sapphire Reserve, which now requires a staggering $795 annual fee. This has created a larger gap between the Sapphire cards than we’ve seen before, and frankly, there doesn’t seem to be anything in between to bridge that divide.
The Sapphire Preferred card currently offers a strong value proposition, especially with its welcome offer of 75,000 points after spending $5,000 in the first three months, along with extra points on dining and travel, plus added travel protection. Yet, with Chase shifting towards more premium offerings and various “use-it or lose-it” benefits, it begs the question: Could another fee increase be on the way?
This leads me to wonder why now is the time for potential changes.
Why Now?
While nothing is set in stone, it’s wise not to be surprised if Chase decides to hike the annual fees on the Sapphire Preferred card soon.
Since its debut in 2009, the Sapphire Preferred card has enjoyed a steady annual fee of $95. That’s quite the track record, especially in an era where other credit card fees seem to rise constantly. One notable change is that Chase had previously waived the first-year fee but ended that practice back in 2019.
Right now, it doesn’t feel like a matter of “if,” but rather “when” the annual fees will see an increase. Just look around—the signs are all there.
Competitors like American Express have a track record for increasing annual fees across their travel rewards cards. Not long ago, the AMEX Gold Card, which also offers similar benefits, upped its fee from $250 to $325. This change set a new precedent that could influence Chase’s next move.
Chase Sapphire cards have typically found themselves in a somewhat unique position, but with the recent premiumization of offerings, especially after the overhaul of the Sapphire Reserve, it’s clear that the company is evolving its card structure.
If you’re on the lookout for a travel rewards card that provides solid returns without the hefty fee tag of the Reserve, you might have to explore options outside of Chase moving forward.
Another hint came earlier this year when Chase offered a significant 100,000-point bonus for new Sapphire Preferred applicants. This promotional offer garnered a lot of interest, and perhaps Chase is considering an annual fee increase for these new users to capitalize on the fresh customer influx.
When you piece this all together, it’s hard to ignore the possibility that the Chase Sapphire Preferred card’s days of maintaining the $95 annual fee may be numbered. Enjoy it while it lasts.
What to Expect
Just to clarify: This is educated guesswork. Chase hasn’t confirmed any changes to the Sapphire Preferred card, and there haven’t been any indications of an impending fee increase, at least not yet.
However, if recent trends in card updates are a guide, we can make some educated predictions about what may be coming down the line.
For instance, earlier this year, Chase’s United Explorer card saw a jump from a $95 annual fee to $150—albeit $0 for the first year. This new tier seems like a plausible outcome for the Sapphire card as well. It’s an increase that shouldn’t scare off casual users but still bolsters Chase’s revenue.
So, what could make such an increase worthwhile? Perhaps the introduction of two more statement credits. For instance, Chase might modify its existing $50 hotel credit to be usable more frequently throughout the year or even add monthly ride credits similar to those seen in the Sapphire Reserve.
Another area of consideration is how points are earned:
- Dining, online grocery purchases (excluding Walmart and Target), plus 3x points on streaming services
- Double points when traveling (or 5x points with Chase bookings)
- 5x points for rides with Lyft (available until September 30, 2027)
- 1x points on all other purchases
If Chase is aiming to better compete with AMEX Gold, adding grocery store purchases and perhaps in-store shopping could enhance appeal. An even simpler change that might attract attention is including bonus points for gas purchases.
Conclusion
The Sapphire Preferred card has maintained a steady annual fee of $95 for nearly 15 years, but that may soon change. With the reimagining of the Sapphire Reserve at a new price point of $795, the likelihood of a fee increase for the Preferred card seems to be increasing.
If these changes do occur, expect some additional credits or perks to help explain the higher pricing. While nothing is confirmed yet, signs are pointing toward adjustments in the future.
