Are you on the hunt for the perfect travel rewards credit card? Look no further! Today, we’ll be comparing two top contenders: the Chase Sapphire Preferred and the Citi Premier. These cards offer incredible rewards on travel and everyday spending, making them perfect for jet-setters and budget-conscious individuals alike. So, let’s dive in!
How the cards stack up
Let’s start by taking a closer look at what these beginner travel rewards cards have to offer and how they differ:
| Chase Sapphire Preferred | Citi Premier | |
|---|---|---|
| 5x Points | Travel arrangements made through Chase Ultimate Rewards | Qualifying hotel and car rental expenses through Citi Travel℠ |
| 3x Points | Online grocery purchases, Takeout, delivery, restaurants, streaming services | Lodging, airfare, supermarket and restaurant purchases, gas station purchases |
| 2x Points | Other travel purchases | – |
| 1x Point | All other purchases | All other purchases |
As you can see, both cards come with their own set of enticing rewards categories. However, Chase Sapphire Preferred provides more flexibility with its reward categories, and you can maximize your earnings by using points for travel.
Welcome bonus
When it comes to the welcome bonus, Chase Sapphire Preferred takes the lead with a bonus of 80,000 points, compared to Citi Premier’s 75,000 points. Every point earned is normally worth 1 cent for both cards. However, with Chase Sapphire Preferred, you can earn up to 25% more when you redeem your points for travel through Chase Ultimate Rewards. This means you can earn a travel credit of $1,000 instead of $800 on your welcome bonus points.
Welcome bonus winner: Chase Sapphire Preferred.
Rewards
In terms of ongoing rewards, Chase Sapphire Preferred offers five points per dollar spent on travel arrangements made through Chase Ultimate Rewards, along with three points per dollar spent on dining purchases, online grocery store orders, and streaming service subscriptions. For all other travel purchases, you’ll earn two points per dollar, and for all other purchases, you’ll earn one point per dollar.
On the other hand, Citi Premier offers three points for every dollar spent on hotels, flights, purchases made at supermarkets, restaurants, and gas stations, and one point for every dollar spent on all other purchases.
Rewards winner: Chase Sapphire Preferred.
Annual fee
Both cards come with the same annual fee of $95.
Annual fee winner: Tie.
APR
While the APR ranges are similar for both cards, Chase Sapphire Preferred has a slight edge with a maximum APR one percentage point lower than Citi Premier.
APR winner: Chase Sapphire Preferred.
Foreign transaction fee
Good news for travelers! Both cards allow you to make purchases abroad without incurring foreign transaction fees.
Foreign transaction fee winner: Tie.
Additional perks
When it comes to additional perks, Chase Sapphire Preferred takes the lead with a $50 yearly hotel statement credit, an annual bonus equal to 10% of your spending, 1:1 point transfers to airline and hotel travel loyalty programs, and purchase and travel protections.
Citi Premier, on the other hand, offers an annual $100 hotel savings benefit on a hotel stay of at least $500, access to Citi Entertainment, and point transfers to select airline loyalty programs.
Additional perks winner: Chase Sapphire Preferred.
Which card earns the most?
To give you an idea of how many points you can earn with each card, let’s say you spend $650 in each category. Here’s how the points stack up:
| Category | Chase Sapphire Preferred | Citi Premier |
|---|---|---|
| Travel arrangements made through Chase Ultimate Rewards | – | – |
| Dining purchases, online grocery store orders, streaming service subscriptions | – | – |
| Other travel purchases | – | – |
| All other purchases | – | – |
| Lodging and airfare booked independently | – | – |
However, it’s worth noting that Citi Premier offers three points per dollar spent on lodging and airfare booked independently, which is more than the two points offered by Chase Sapphire Preferred. So, if you frequently book independent accommodations and airfare, you may earn more with Citi Premier.
Our recommendations
In our opinion, Chase Sapphire Preferred is the better pick for travel rewards. The points are worth 25% more when used for travel through Chase Ultimate Rewards, plus you’ll enjoy an annual $50 hotel statement credit and built-in travel coverages and purchase protections. If you frequently dine out or order groceries online, this card will be a game-changer for you.
However, if you don’t travel often and prefer a card that takes care of everyday expenses without the need to keep track of spending categories, then Citi Premier may be the better choice for you. You’ll still earn generous rewards on everyday expenses, and you can transfer points to select airline loyalty programs.
The bottom line
Both the Chase Sapphire Preferred and the Citi Premier are affordable starter travel cards, with the same annual fee of $95. The best card for you will ultimately depend on how you spend your money and which perks are most important to you.
Thinking about upgrading your current credit card for exciting travel rewards? Visit Personal Finances Blog for more valuable insights and tips on managing your personal finances.