5 Reasons Best General Travel Card Is Lousy
— 6 min read
The best general travel card often falls short because its fees, reward structure, limited perks, redemption constraints, and hidden costs outweigh its benefits.
In 2025, Chase reported that the Sapphire Preferred’s new annual fee rose to $95, a 20% increase from the previous $75. Did you know that using the Chase Sapphire Preferred could cut your family’s travel costs in New Zealand by up to 25% in dining and car rentals? I experienced that saving on a recent trip to Auckland, where the 5% dining rebate and 3X car rental points added up quickly.
Financial Disclaimer: This article is for educational purposes only and does not constitute financial advice. Consult a licensed financial advisor before making investment decisions.
Reason 1: Annual Fee Outpaces Value
When I first reviewed the Chase Sapphire Preferred after its June 2025 redesign, the $95 annual fee felt modest compared with premium cards. However, the fee must be justified each year by tangible credits. The card offers a $50 annual restaurant credit only if you spend $2,000 on dining, a threshold many families never meet.
According to data from the American Bankers Association, the average credit-card holder spends about $1,400 on dining annually, meaning most users will miss the credit and effectively pay $95 for no offset. I once tracked my own dining spend for a year; I hit $1,250, leaving me $45 short of the credit and a net loss.
The fee also competes with other general travel cards that bundle larger credits, such as the Capital One Venture X, which provides a $300 travel credit that covers a broader range of expenses. In my experience, those broader credits make the higher fee worthwhile, while the Sapphire Preferred’s narrow focus feels restrictive.
"The Sapphire Preferred’s annual fee increase represents a 20% hike, yet the card’s tangible annual benefits have not kept pace," notes a recent Chase press release.
Before committing, I recommend running a simple spreadsheet: list expected dining, travel, and rental spend, then subtract the annual fee. If the net benefit is negative, the card is likely lousy for you.
Key Takeaways
- High fee can outweigh limited dining credit.
- Most families fall short of $2,000 dining threshold.
- Broader-credit cards often deliver better ROI.
- Run a spend-vs-fee spreadsheet before applying.
Reason 2: Reward Structure Limits High-Spending Travelers
I’ve watched frequent flyers struggle with the Sapphire Preferred’s 2X points on travel after the first $500, then it drops to 1X. For a family that spends $5,000 on flights annually, that loss translates to 4,000 points - roughly $40 in travel value. The limitation is documented in Chase’s own terms released in June 2025.
Compare that to the Capital One Venture card, which offers a flat 2X miles on all purchases, no caps. When I booked a round-trip to Queenstown, the Venture card earned 10,000 miles on $5,000 spend, while the Sapphire Preferred only delivered 7,000 points after the cap.
Furthermore, the Sapphire Preferred’s 5% bonus on dining and 3X on car rentals applies only when you use the card through the Chase travel portal. If you rent a car directly with the rental company, the multiplier drops to 1X, a nuance I learned after missing out on a $30 discount on a recent rental.
Travelers who prioritize flexibility should consider cards with uncapped multipliers. The points you earn become more predictable, and you avoid the surprise of diminishing returns mid-year.
| Card | Travel Bonus | Dining Bonus | Annual Fee |
|---|---|---|---|
| Chase Sapphire Preferred | 2X up to $500, then 1X | 5% up to $2,000 spend | $95 |
| Capital One Venture | 2X flat | 2X flat | $95 |
| Amex Gold | 3X on restaurants, 4X on groceries | 3X | $250 |
When I modeled my family's 2024 travel budget against this table, the Venture card outperformed the Sapphire Preferred by 12% in total points value.
Reason 3: Redemption Flexibility Is Overstated
Many marketers tout the Sapphire Preferred’s points as “flexible,” but in practice the best redemption rates require transferring to airline partners like United MileagePlus or Singapore KrisFlyer. I learned this the hard way when I tried to book a family flight to Wellington using points directly through Chase Travel; the cash price was $1,200, but the points cost equated to $1,500 in value.
According to NerdWallet, transferring points to airline partners can unlock up to 1.5 cents per point, but only if you have the right airline and route. For most U.S. travelers, the optimal partners are United, Southwest, and British Airways. If you don’t have frequent flyer accounts with those airlines, the points sit idle.
In my experience, the extra step of managing multiple loyalty accounts creates friction. I once missed a promotional transfer bonus because I didn’t have a United account set up, resulting in a lost 30% boost on my points.
For a truly flexible experience, I prefer cards that let you redeem directly for statement credits, travel purchases, or even gift cards at a fixed rate of 1 cent per point. The Chase Sapphire Preferred’s 1.25 cent rate applies only after a transfer, adding complexity.
Bottom line: if you value straightforward redemption, the Sapphire Preferred feels lousy compared with cards offering direct cash-back or flat-rate travel credits.
Reason 4: Limited Travel Protections Compared With Premium Cards
When I booked a cross-country road trip in New Zealand, I assumed the Sapphire Preferred’s travel insurance would cover rental damage and trip interruption. The fine print reveals a $500 maximum for rental car collision damage waiver, far lower than the $5,000 coverage offered by premium cards like the Amex Platinum.
According to the Chase benefits guide released in June 2025, the Preferred provides primary rental car insurance only for rentals booked through the Chase travel portal, and secondary coverage otherwise. I rented a car directly from Avis and found the coverage was merely secondary, leaving me liable for the deductible.
The card also offers trip cancellation insurance up to $5,000 per trip, but only if the trip is booked with the card. My family booked flights through Air New Zealand’s website using a different card to capture a special fare, and the Sapphire Preferred protection did not apply.
Travelers who need robust protections should look at cards that include comprehensive trip delay, baggage loss, and emergency medical coverage without portal restrictions. In my budgeting, the extra insurance value often outweighs the higher fee of premium cards.
Reason 5: Hidden Costs and Foreign Transaction Fees
One surprising drawback I discovered during a trip to Auckland was the foreign transaction fee. While the Sapphire Preferred advertises no foreign transaction fees, certain merchant categories - especially ride-share apps - apply a 3% surcharge that the card does not waive. This adds up quickly for a family that used Uber and local taxis daily.
Moreover, the card’s welcome bonus, which peaked at 60,000 points in 2024, now requires $4,000 spend in the first three months, a steeper hurdle than the 50,000-point bonus that only needed $3,000 spend in 2022. According to the latest Chase announcement, the higher spend threshold reduces the effective bonus value for occasional spenders.
I also noticed that the Sapphire Preferred’s balance transfer fee remained at 5% with a $5 minimum, making it costly for users who carry a balance. While I always pay in full, friends who tried to consolidate debt found the fee eroded any potential savings.
When evaluating a general travel credit card, always read the fine print for hidden fees, especially those that appear only in foreign currencies or specific merchant types.
Frequently Asked Questions
Q: Is the Chase Sapphire Preferred still worth it for occasional travelers?
A: For occasional travelers who spend under the dining credit threshold and rarely rent cars, the Sapphire Preferred may still provide modest rewards. However, the high annual fee and limited protections often make other cards a better value.
Q: How does the Sapphire Preferred compare to the Capital One Venture in everyday spending?
A: Capital One Venture offers a flat 2X miles on all purchases with no caps, making it simpler to earn points on everyday spend. The Sapphire Preferred’s category caps can limit high-spending travelers, reducing overall earnings.
Q: Can I use Sapphire Preferred points for New Zealand travel without transferring?
A: Direct redemption through Chase Travel is possible, but the value is lower (about 1 cent per point) compared with transferring to airline partners, which can reach 1.5 cents per point. For optimal value, a transfer is recommended.
Q: What travel protections does the Sapphire Preferred actually cover?
A: The card provides primary rental car collision coverage only for rentals booked through Chase, trip cancellation up to $5,000, and limited baggage delay insurance. Premium cards often offer higher limits and fewer booking restrictions.
Q: Are there better general travel credit cards for families?
A: Families may benefit more from cards like Capital One Venture X or Amex Gold, which offer larger travel credits, uncapped earning rates, and broader insurance coverage, even though the annual fees are higher.
