Why the Chase Sapphire Preferred should be your top choice right after college graduation

To all recent graduates: Well done! Completing your college journey is a monumental achievement, and your dedication deserves to be honored.

As you step into your first job or plan a post-college adventure, entering adulthood can seem daunting.

But don't worry — there are resources available to ease this transition. A key milestone in adulthood is getting your first credit card. You might already have a student card from your undergrad years, or you could be exploring options for your first true adult credit card.

Regardless of your situation, we strongly believe that the Chase Sapphire Preferred® Card should be the first credit card for every graduate. Here’s why.

Generous sign-up bonus

With a manageable $95 annual fee, you'll earn 60,000 Ultimate Rewards points after spending $4,000 in the first three months of opening your account, plus a $300 statement credit for Chase Travel℠ purchases made within the first year. According to TPG's August 2024 valuations, Ultimate Rewards points are worth about 2.05 cents each, making this sign-up bonus potentially worth up to $1,530 (including the $300 travel credit).

However, before you get too enthusiastic, make sure you're comfortable with the spending requirement to earn the bonus. This averages out to approximately $1,334 in monthly spending for your first three months, a target you can easily reach if you have upcoming moving expenses and need to invest in a professional wardrobe as you step into adulthood. Just remember to not charge more than you can afford to pay off, regardless of how appealing the bonus might be.

A Guide to Points and Miles

If you're eager to explore the realm of points and miles, you’ve found the perfect resource. At TPG, we offer a wealth of materials to help you get started — including our beginner's guide and our recommended first credit cards.

You'll notice that the Chase Sapphire Preferred consistently ranks at the top in these guides. It's an ideal starter card that will gently introduce you to "travel hacking," teaching you how to leverage credit card rewards for free flights and hotel stays. While there are numerous ways to redeem points, using this card for travel rewards maximizes your benefits.

To put it simply, you have two ways to book travel with this card. First, you can use Chase Travel℠ for a 25% bonus on points, meaning each point is worth 1.25 cents. For instance, 10,000 points would equal a $125 value for travel. You can book a wide range of travel options on this platform, such as flights, hotels, car rentals, and cruises.

Once you're comfortable booking travel through the portal, you can explore transferring your points to loyalty programs. Chase allows you to transfer points at a 1:1 ratio to its airline and hotel partners, meaning your 60,000 Ultimate Rewards points can convert to 60,000 points in your chosen loyalty program.

Naturally, some partners offer more value than others, but a few of our top recommendations include Air Canada Aeroplan and World of Hyatt. With these partnerships, it’s possible to achieve well over 1.25 cents per point in value. We've even experienced values of up to 4.5 cents when booking a business-class ticket on Air France, showcasing the potential with Chase's transfer partners.

Beneficial card features

The Chase Sapphire Preferred is a favorite, especially among Gen-Z, due to its numerous partner benefits that can help you save money while earning rewards.

One of the standout perks is a complimentary one-year subscription to DoorDash DashPass (to be activated by Dec. 31, 2027). This membership eliminates delivery fees and reduces service fees on eligible orders over $12. Typically costing $9.99 per month, this benefit significantly offsets the card's $95 annual fee.

You can also earn 5 points for every dollar spent on Lyft rides (valid through March 2025). Depending on your usage, this is an excellent opportunity to rack up bonus points on this rideshare platform.

Be sure to check out the Chase Offers available on your card, as they refresh approximately every week.

All these partner deals can help you save on your everyday purchases.

Travel and Purchase Protections

Another reason to love the Sapphire Preferred: no other card with a $95 annual fee offers as many travel and shopping protections. While we hope you never need to use them, these coverages can provide peace of mind and save you money in emergencies:

• Primary car rental insurance: Protects against theft and damage up to the actual cash value of the rental car for bookings under 31 consecutive days. Most credit cards typically offer only secondary coverage.
• Trip cancellation and interruption insurance: Reimburses you up to $10,000 per person (or $20,000 per trip) for pre-paid, nonrefundable trip expenses due to covered issues like illness or severe weather.
• Baggage delay insurance: Offers up to $100 per day (for a maximum of five days) for baggage delays exceeding six hours to purchase essential items.

• Trip delay reimbursement: Covers up to $500 per ticket for meals or lodging during trip delays of 12 hours or more (or requiring an overnight stay).
• Lost luggage reimbursement: Provides coverage for loss or damage to luggage by a common carrier (like an airline) up to $3,000 per passenger.
• Travel and emergency assistance: Offers emergency help and referrals if you face issues while traveling.
• Extended warranty protection: Adds an additional year to a U.S. manufacturer's warranty of three years or less.
• Purchase protection: Covers damage or theft of new purchases, up to $500 per claim and $50,000 per account.

To qualify for any of these benefits, you must make your purchase using your Chase Sapphire Preferred card. You can submit a claim online through Card Benefit Services with the Benefits Administrator.

Conclusion

If you’ve recently graduated, consider adding the Chase Sapphire Preferred to your wallet. With its impressive sign-up bonus, potential for long-term earnings, and valuable perks, this card will be a fantastic companion as you navigate the real world.