The Chase Sapphire Preferred 60,000-point sign-up bonus is worth up to $750 — and it's a great choice if you're new to credit card rewards

• The Chase Sapphire Preferred® Card offers a welcome bonus of 80,000 points after you spend $4,000 in the first three months from account opening.
• 80,000 points from Chase are worth $1,000 toward travel booked through Chase, or for dining, grocery, home-improvement, and charity purchases through Pay Yourself Back.
• See Business Insider's list of the best rewards credit cards »

For years, the Chase Sapphire Preferred® Card has offered one of the best sign-up bonuses among rewards credit cards: 80,000 points after new cardholders spend $4,000 in the first three months.

The welcome bonus can get you up to $1,000 in value. Points from the Sapphire Preferred are worth 1.25 cents each when you redeem them for travel through the Chase Ultimate Rewards travel portal, or for dining, groceries, and more through Pay Yourself Back.

Chase Sapphire Preferred sign-up bonus

Some credit card welcome bonuses fluctuate every few months, but the Chase Sapphire Preferred® Card usually holds steady with a 60,000-point offer. However, the sign-up bonus had gone as high as 80,000 points. 

Not only are Chase Ultimate Rewards points some of the best rewards for booking travel, but they're also great for saving money on common spending categories thanks to a recently introduced feature.

The new Pay Yourself Back tool lets you use points from the Sapphire Preferred (or the Chase Sapphire Reserve®) to cover purchases in the following categories:

• Dining (including takeout and delivery services)
• Grocery stores
• Home improvement
• Charity

This is one of the most valuable new credit card features that have been introduced during quarantine. Each of your points is worth 1.25 cents apiece when you redeem them through Pay Yourself Back, and you can apply points to purchases made up to 90 days in the past. 

Redeeming 80,000 points for travel booked through Chase or through Pay Yourself Back would get you $1,000 in value, since your points are worth 1.25 cents apiece when used this way. You can also transfer Ultimate Rewards points to travel partners such as British Airways, Hyatt, Marriott, and United and potentially get even more value per point, but that may not be top of mind right now, as many of us are still holding off on traveling.

The Chase Sapphire Preferred is one of the best rewards credit cards

Getting $1,000 in value from the sign-up bonus is a great reason to consider the Sapphire Preferred, but this is a great travel card even without factoring in the welcome offer.

In exchange for a $95 annual fee, you get 2x points on dining and travel, 5x points on Lyft rides through March 2022, and 1 point per dollar on everything else. You also get some of the best travel insurance available on a credit card— including trip delay insurance and primary rental car insurance.

For a limited time through April 30, 2021, you'll also earn 2x points on grocery store purchases, on up to $1,000 per month in spending. This is one of several limited-time increased credit card category bonuses Chase has introduced in response to changing spending habits.

Especially now that you can get solid value out of your Chase points for non-travel purchases such as groceries and dining, the Chase Sapphire Preferred® Card is a great option if you're looking to maximize rewards during quarantine. You could always choose to hold on to those 80,000 points and continue earning rewards so you're ready to book a flight or hotel stay when you're ready to travel again. 

Chase applications are subject to the 5/24 rule

If you're considering the Chase Sapphire Preferred, you'll want to check on your 5/24 status before you apply.

Chase has a so-called 5/24 rule that prevents you from getting approved for most Chase credit cards if you've opened five or more credit card accounts in the last 24 months. That limit of five cards applies to accounts across all banks, not just Chase, so if you've been on a credit card application spree over the last two years, you may not be approved. You can check your 5/24 status by opening a free Credit Karma account and viewing the opening dates for any credit cards you've opened in the past.

If you're in the clear and you don't have this card — or its more premium sibling, the Chase Sapphire Reserve®— yet, now is a great time to apply and earn an excellent welcome bonus of 80,000 points. 

How does this bonus compare to past offers?

For the last several years, the Chase Sapphire Preferred® Card has consistently offered a sign-up bonus of 60,000 points (after new cardholders spend $4,000 in the first three months). There have occasionally been higher limited-time offers in the past, but this bonus is still one of the best credit card offers you can get.

How can you use Chase Ultimate Rewards points?

You have several options for redeeming the points from your Chase Sapphire Preferred® Card, including:

• Booking travel through the Chase Ultimate Rewards website (get 1.25 cents per point in value)
• Booking travel by transferring points to Chase's airline and hotel partners (value per point depends on your booking)
• Using Pay Yourself Back to cover purchases made with your card in the following categories: dining, groceries, home improvement, and select charities (get 1.25 cents per point)
• Redeeming for statement credits or gift cards (get 1 cent per point)
• Paying for merchandise at select retailers including Amazon and Apple (get ~0.8 cents per point)
• Redeeming for experiences through Chase Ultimate Rewards (value per point varies)

For more information, see our complete guide to the Chase Ultimate Rewards program.

Other cards to consider

If you already have a Chase Sapphire Preferred® Card, or want to shop around before signing up, other travel rewards credit cards to consider include:

• Capital One® Venture® Rewards Credit Card— This card also has a $95 annual fee, but it earns 2x miles on every purchase, with no bonus categories to keep track of. You can trade Capital One miles for cash back or transfer them to more than a dozen travel partners, among other redemption options.
• Citi Premier® Card— The Citi Premier is another good travel card with a $95 annual fee. It earns 3x points at restaurants, supermarkets, and gas stations and 3x points on air travel and hotels (and 1 point per dollar on everything else). You'll want to learn about your options for using Citi points before you opt for this card.
• Chase Sapphire Reserve®— If you like the Chase Sapphire Preferred's benefits but you're looking for more perks, the $550-a-year Sapphire Reserve is a good alternative. It earns 3x (rather than 2x) points on travel (after earning the travel credit) and dining, and you get up to a $300 annual travel credit that automatically applies to purchases such as airfare, parking, tolls, subway fare, and hotels. It has a lower sign-up bonus than the Preferred, but if you travel a lot, the Reserve's extra benefits like Priority Pass Select airport lounge access could make it a better pick in the long run.

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