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On Friday I wrote about the rumor that the Chase Sapphire Preferred Card would be eliminating the 7% annual points dividend for new card members as of July 20, 2014.
Chase Sapphire Preferred eliminating 7% points dividend
Gary broke the news this morning that Chase is indeed making a few changes to the card. Regarding the 7% annual points dividend:
- New applicants will no longer receive the 7% dividend
- For existing card members, the 7% annual points dividend will continue to be offered for 2014 and 2015 (the dividends are typically awarded early in the year, so the last one would be awarded in early 2016)
The 7% points dividend was a nice bonus, though I don’t think it makes or breaks the value of the card — to me the double points on dining and travel and lack of foreign transaction fees are the two greatest benefits of the card.
New Chase Sapphire Preferred perks
Gary shares the two new perks being added to the card, effective today for both new and existing card members:
- Trip cancellation & interruption benefit increases in value from a maximum payout of $5,000 to $10,000
- The rental car collision damage benefit goes from being secondary to being primary
Primary rental car collision damage waivers are awesome — it basically means that the insurance offered by the card supersedes all other rental car coverage.
This is a pretty rare card benefit, and I can only think of a few other personal cards that offer the benefit. On the business side, the Ink Plus® Business Credit Card and Ink Bold® Business Charge Card both offer this benefit as well.
Car rental insurance comes in handy when your left mirror turn signal stops working
Based on my personal spend patterns, am I happy to see the 7% dividend go away? Of course not.
I think it was a nice thing that kind of provided the extra “edge” over other cards. But I can also see from Chase’s perspective that they may have been cannibalizing some of their other business with that.
I’ve always thought of the Chase Sapphire Preferred as a “super card” — if I could just recommend one personal card to someone, it would probably be it.
In addition to having a great points earning structure, it’s great to have other benefits that set the card apart. For me two of those benefits would be no foreign transaction fees and great car rental coverage, and in that sense I think the Chase Sapphire Preferred Card is even more unbeatable now.