Traveling frequently can be expensive, but a travel credit card can save you money. Today will be featuring two top travel cards: the Chase Sapphire Preferred® Card and IHG One Rewards Premier Credit Card.
The Sapphire Preferred is one of the most popular travel rewards cards because it offers nice welcome bonus and extra points on travel and dining, which can be transferred to airline and hotel partners or redeemed directly for travel at a rate of 1.25 cents per point through Chase Travel℠. The Sapphire Preferred also offers great travel and purchase protections for a card with a $95 annual fee.
The IHG Premier stands out with its combination of IHG elite status, reward night benefits, and nice rewards on hotel stays. The card provides good value even for moderate IHG travelers through perks like the anniversary free night certificate (up to 40,000 points) and the ability to top it off with points for higher-priced properties.
This article will compare each card based on several factors to help you make an informed decision on which card is the best to add to your wallet.
Full Review: Chase Sapphire Preferred® Card and IHG One Rewards Premier Credit Card.
Overview: Sapphire Preferred vs IHG Premier
Welcome Bonus
Chase Sapphire Preferred:
Let’s begin with one of the most attractive aspects of the Chase Sapphire Preferred: the welcome bonus. Currently, new cardholders can earn the following welcome bonus:
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IHG Premier:
The IHG Premier Card currently offers the following welcome bonus: Earn 5 Free Nights after you spending $5,000 in the first 3 months and each night is valued at up to 60,000 points.
Earning Points
Chase Sapphire Preferred:
The Chase Sapphire Preferred earns Ultimate Rewards points and offers bonus points on spending in several categories:
- 5 points per dollar on travel booked through Chase Travel;
- 5 points per dollar on Lyft purchases (through March 2025);
- 5 points per dollar on Peloton equipment and accessory purchases of $250 or more (through March 2025, with a limit of 25,000 bonus points);
- 3 points per dollar on dining, including eligible delivery services, takeout, and dining out;
- 3 points per dollar on online grocery store purchases (excludes Target, Walmart, and wholesale clubs);
- 3 points per dollar on select streaming services;
- 2 points per dollar on all travel not booked through Chase Travel; and
- 1 point per dollar on all other eligible spending.
IHG Premier:
The IHG Premier Card earns IHG Rewards points at the following rates:
- 10 points per dollar spent when you stay with IHG® Hotels & Resorts;
- 5 points per dollar on travel purchases;
- 5 points per dollar at gas stations;
- 5 points per dollar on dining at restaurants; and
- 3 points per dollar on all other eligible purchases.
Winner:
Chase Sapphire Preferred® Card wins this category because Chase Ultimate Rewards points are much more valuable than IHG points.
Card Benefits
Chase Sapphire Preferred:
The Chase Sapphire Preferred offers nice benefits, including:
10% Points Bonus: You will earn bonus points equivalent to 10% of your total spending in points earned with your Chase Sapphire Preferred Card during the past account anniversary year. For example, if you spent $10,000 during your cardmember year, you would receive an additional 1,000 points ($10,000 * 10% = 1,000 points).
$50 Hotel Credit: The Chase Sapphire Preferred card offers up to $50 in statement credits every account anniversary year if you book your hotel stays through Chase Travel.
DashPass Membership: This card offers a one-year DashPass membership for free, which includes DoorDash and Caviar, offering unlimited deliveries with free delivery fees and reduced service fees for eligible purchases. The offer must be activated by December 31, 2027. Once the free membership is over, you will be automatically enrolled in DashPass at the prevailing monthly rate.
Instacart Membership: Have your groceries delivered to your doorstep with a complimentary 6-month Instacart+ membership plus a $15 credit once every quarter. Enrollment is required by July 31, 2024.
No Foreign Transaction Fees: You’ll save money on every purchase while traveling internationally since this card doesn’t add the typical 3% surcharge that many other cards impose.
Travel Benefits
Primary Rental Car Insurance: When you rent a car and pay with this card, you’ll receive comprehensive coverage including damage and theft protection. Simply decline the rental company’s collision damage waiver and charge the entire rental to your card to activate coverage. This insurance covers damage, theft, and valid loss-of-use charges worldwide.
Trip Cancellation & Interruption Insurance: This protection reimburses you for non-refundable, prepaid travel expenses if you need to cancel before departure or cut your trip short due to covered situations like severe illness or weather events. Coverage activates when you pay for your trip with the card, but it’s important to note that reimbursement only applies for specific covered reasons rather than any cancellation.
Trip Delay Insurance: When your trip is significantly delayed due to covered reasons like equipment failures or severe weather, this protection reimburses you for reasonable expenses including lodging, meals, toiletries, and medication. The coverage activates when you pay for travel with your card and extends to family members on the same itinerary, though you’ll need to seek reimbursement from the travel carrier first.
Lost Luggage Reimbursement: Your checked luggage gets extra protection against loss, theft, or damage beyond the basic compensation offered by carriers when you pay for travel with this card.
Baggage Delay Insurance: Missing luggage doesn’t have to derail your trip – this coverage steps in to reimburse you for essential purchases when your checked bags are delayed by airlines, trains, or other carriers. You can grab the necessities you need, from a fresh outfit to personal care items, while waiting for your bags to arrive.
Purchase Benefits
120-Day Purchase Protection: Get 120 days of protection against damage, theft, and even loss of your purchases – one of the longest windows available. This premium coverage automatically applies when you pay with your card.
Extended Warranty Protection: Your purchases gain an extra year of warranty protection when bought with this card, extending manufacturer warranties of three years or less without the inflated prices of store warranty plans.
IHG Premier:
The IHG Premier Card offers the following benefits to cardholders:
Free Anniversary Night: Receive a free night certificate for each card anniversary at a hotel worth up to 40,000 points. Most 40,000-point hotels are worth at least $125+ per night, so this easily covers your $99 annual fee.
IHG Platinum Status: This card offers automatic IHG Platinum Elite status, which gets you access to special benefits such as a 60% points bonus, complimentary space-available upgrades, late check-out, and a welcome amenity.
Potential IHG Diamond Status: The IHG Premier Card lets you reach top-tier Diamond elite status by spending $40,000 within a calendar year. Upon qualifying, your Diamond Elite status will remain valid until December 31 of the following year.
Fourth Reward Night Free: You can get a fourth night free when booking a hotel stay of four nights or more with points. For example, if the hotel costs 25,000 points per night, and you are staying 4 nights, it would only be 75,000 points in total.
United Airlines TravelBank: Get up to $50 in United® TravelBank Cash which can be used when you book United® or United Express® flights.
Spending Bonus: You can receive an extra bonus each year of $100 Statement Credit and 10,000 Bonus Points after spending $20,000 in a calendar year and making one additional purchase.
Purchase Points Discount: The IHG Premier card offers a 20% discount when you purchase IHG points with your card. However, you cannot combine the discount with other sales, which typically offer a 100% bonus.
Travel Benefits
Global Entry / TSA PreCheck / Nexus Credit: Receive an application fee credit of up to $100 ($120 starting 10/1/24) every four years for either TSA PreCheck (expedited airport security), Global Entry (expedited airport security and customs), or NEXUS (expedited crossing between the US and Canada) for Global Entry, NEXUS, or TSA PreCheck®. These trusted traveler programs can save you time and hassle at the airport.
Trip Cancellation & Interruption Insurance: This protection reimburses you for non-refundable, prepaid travel expenses if you need to cancel before departure or cut your trip short due to covered situations like severe illness or weather events. Coverage activates when you pay for your trip with the card, but it’s important to note that reimbursement only applies for specific covered reasons rather than any cancellation.
Baggage Delay Insurance: Missing luggage doesn’t have to derail your trip – this coverage steps in to reimburse you for essential purchases when your checked bags are delayed by airlines, trains, or other carriers. You can grab the necessities you need, from a fresh outfit to personal care items, while waiting for your bags to arrive.
Lost Luggage Reimbursement: Your checked luggage gets extra protection against loss, theft, or damage beyond the basic compensation offered by carriers when you pay for travel with this card.
Secondary Rental Car Insurance: This card provides backup protection for rental car damage or theft when you charge the full rental to your card.
Purchase Benefits
No Foreign Transaction Fees: You’ll save money on every purchase while traveling internationally since this card doesn’t add the typical 3% surcharge that many other cards impose.
120-Day Purchase Protection: Get 120 days of protection against damage, theft, and even loss of your purchases – one of the longest windows available. This premium coverage automatically applies when you pay with your card.
Extended Warranty Protection: Your purchases gain an extra year of warranty protection when bought with this card, extending manufacturer warranties of three years or less without the inflated prices of store warranty plans.
Winner:
Tie. I really like IHG Premier Card‘s Platinum Elite status and free anniversary hotel night, but the Chase Sapphire Preferred offers better travel protections and special credits.
Value of the Annual Fee
Chase Sapphire Preferred:
The Chase Sapphire Preferred has a $95 annual fee, which may give some people pause. However, as a frequent traveler, I’ve found that the card’s benefits and rewards can easily offset this cost.
Think about it this way: if you take advantage of the welcome bonus and redeem those points for travel, you’ve already recouped the annual fee many times over. Plus, the ongoing rewards and perks like travel insurance, hotel credit, and no foreign transaction fees can save you money and provide peace of mind during your trips.
IHG Premier:
The IHG Premier Card has a $99 annual fee. The card’s benefits can easily justify this cost, particularly through the anniversary free night certificate (valid at properties up to 40,000 points) which can be worth significantly more than the annual fee when redeemed.
Winner:
IHG Premier Card because you can offset its annual fee easily by using the free hotel night.
Redeeming Points
Chase Sapphire Preferred:
The Chase Sapphire Preferred offers exceptional flexibility when it comes to points redemption, allowing you to create the travel experiences you’ve been dreaming of.
One popular redemption option is booking travel through the Chase Travel portal. Here, your points are worth 1.25 cents apiece, meaning that a substantial amount of points can be redeemed for a significant value towards travel. I’ve used this option to book flights, hotels, and rental cars, and I appreciate the simplicity of the process. Plus, when you book through the portal, you can still earn airline miles and hotel points on your reservations.
If you’re looking to stretch your points even further, transfer to Chase’s airline and hotel partners. Some notable transfer partners include United Airlines, Southwest Airlines, British Airways, Air France/KLM, Hyatt, and Marriott. By strategically transferring points, you can unlock incredible redemption opportunities like first-class flights or luxurious resort stays.
In my experience, transferring points to Hyatt has yielded some of the most valuable redemptions. By leveraging my Ultimate Rewards points, I’ve booked top-tier properties like the Park Hyatt Paris-Vendôme and the Andaz Maui at Wailea Resort for a fraction of the cash price.
Of course, if you’re not in the mood for travel, you can always redeem your points for statement credits or gift cards at a rate of 1 cent per point. While this may not provide the most bang for your buck, it’s a decent option to have for those times when you need a little extra cash in your pocket.
Ultimate Rewards Transfer Partners [1 to 1]
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Aer Lingus
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Air Canada Aeroplan
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Air France/KLM
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British Airways
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Emirates
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Hyatt Hotels
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Iberia
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IHG Hotels
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JetBlue
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Marriott
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Singapore
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Southwest
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United
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Virgin Atlantic
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IHG Premier:
IHG One Rewards points offer flexibility and value for travelers seeking hotel stays and unique experiences. The primary and most valuable use of IHG points is for hotel bookings across the brand’s extensive portfolio.
Point requirements vary based on the property and season, starting from 5,000 points per night. IHG’s dynamic pricing model aligns point costs with cash rates, ensuring consistent value. Members can book stays entirely with points or opt for a points-plus-cash combination. Based on our data study, we value points at 0.73 cent per point.
To maximize value, IHG credit cardholders can take advantage of the fourth-night-free benefit on award stays of four nights or more. This effectively provides a 25% discount on longer stays. It’s worth noting that award stays booked with points waive most taxes and fees, potentially leading to significant savings, especially in areas with high tourism taxes.
For those seeking more than just accommodations, IHG One Rewards Access provides opportunities to redeem points for exclusive events and experiences in entertainment and sports. This feature allows members to bid on or directly book special activities, adding an extra dimension to their travel rewards. While IHG points can be redeemed for gift cards or merchandise, these options generally offer lower value compared to hotel stays.
Winner:
The Chase Sapphire Preferred® Card offers a higher redemption value when points are redeemed for travel on the Chase portal. Plus, Chase points are more flexible giving, allowing you to transfer to several hotel and airline partners across different airline alliances.
The Verdict
Both the Chase Sapphire Preferred® Card and IHG Premier Card are great options and complement each other well.
The IHG Premier card offers great benefits at IHG Hotels and Resorts, and its Platinum Elite status and free anniversary hotel night can easily offset its annual fee.
But if you don’t stay at IHG Hotel often, the Sapphire Preferred offers more valuable points, offers better travel protections, and is better at earning points.
Which card are you going to choose?
