Chase Sapphire Preferred® Card 7% Annual Dividend Being Eliminated?

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Link: Chase Sapphire Preferred® Card

Why I love the Chase Sapphire Preferred® Card

The Chase Sapphire Preferred is my all around favorite credit card, and the one that I use the most for my everyday spend. It offers:

  • A generous sign-up bonus of 40,000 Ultimate Rewards points after spending $4,000 within three months, plus an additional 5,000 Ultimate Rewards points when you add an authorized user to the card that makes a purchase within three months
  • Double points on dining and travel, which is a large chunk of what I spend money on
  • No foreign transaction fees, so is great for international travel (and especially great since when traveling abroad, virtually all my spend fits in the “dining and travel” category)

The 7% annual points dividend

One of the nice perks of the card is that it has offered a 7% annual points dividend. Basically you’d receive a 7% “points dividend” towards the beginning of the year for all the spend you put on the card the previous year.

In and of itself I don’t think it’s a benefit that makes or breaks the card, but it certainly was nice to earn that extra 7%, meaning you were earning 2.14 Ultimate Rewards points per dollar spent on dining, and 1.07 Ultimate Rewards points per dollar spent on everyday purchases.

Will the card no longer offer a 7% dividend?

Rumors have been circulating that the Chase Sapphire Preferred® Card will no longer offer a 7% annual points dividend for new cardmembers. The benefit was quietly taken off the application page a while ago, though no official announcement has been made.

I called Chase Sapphire Preferred customer service today, and they said that the benefit is indeed going away for new cardmembers, but that existing cardmembers will be grandfathered in and continue to earn the 7% points dividend.

Again, this hasn’t been officially communicated to me, though that’s what the phone representative that I spoke with said.

Will you get the 7% points dividend if you apply now?

I don’t know.

The 7% dividend is not listed as a benefit anymore. Unofficially, someone “in the know” told me the Sapphire Preferred 7% dividend would no longer apply for new accounts as of July 20, 2014, which would be this Sunday. He has never been wrong in the past when it comes to the information he has shared with me.

At the same time, when I called and asked, they said that the 7% dividend no longer applies for new applicants.

If I had to guess — and this is entirely speculation on my part — I would say that the July 20 date is true, and that Chase is just trying to manage expectations by not telling new applicants about the 7% dividend, so that there’s no one screwed over during the “transition.”

Again, this is pure speculation on my part, and the 7% annual points dividend isn’t listed on the application page, so if you apply now you have no “right” to it.

Bottom line

If you’re in the market for a Chase Sapphire Preferred, I’d definitely rather apply today than Monday.

There’s no guarantee you’ll receive the 7% annual points dividend if you apply now, but there’s a much better chance than if you apply on Monday.

I just think Chase is trying to overpromise here rather than potentially get someone “stuck” during the transition period.

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Comments

  1. @ Al — Everything except the sign-up bonus counts (so shopping portal bonuses, etc.), as far as I know.

  2. @James – God forbid Lucky earns a living and can continue providing YOU with FREE leisure reading material. Really hard to complain about something YOU DON’T PAY FOR.

  3. Off the topic but my MC Ink Bold is being replaced by a new Visa Ink Bold within a couple of weeks. I just learned about it two days ago when I paid my bill at a local branch.

  4. If they take the 7% away, they should add something else. This makes the non travel/dining spend significantly less rewarding than the Freedom with a Chase checking account. They should add that feature to the Preferred. Maybe they can add X bonus points for $Y, 2X for $2Y, etc spend on the card.

  5. I was approved for CSP a few days ago and in the welcome email fine print, it said I will receive the 7% annual bonus.

  6. Just apply through your link, and my status is decision pending. So, wait to see that I get approve or not . If I get it, hopefully this dividend is still exist. (^_^)

    By the way, just booking trip to Europe by PointsPros, your team ,Jimmy is very efficient and helpful.
    Thanks!

  7. After applying online (via your link, of course), and being told to call the #, and 20 minutes of “well, why do you . . . why did you . . . . etc.” and being disconnected and starting over (hey, I was motivated!), I finally got approved. Had to move 10k from my Explorer card, but since they’d given me an insane 25k on that card, it was no problem. So, we’ll see what the fine print says when I get the packet. Fingers crossed . . . .

  8. I was approved on Friday July 18, and my welcome email fine print says I will get the 7%, so THANKS LUCKY for getting me off my duff and finally getting a card (via your link, of course)

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