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UPDATE: I posted about this yesterday, but it looks like many other bloggers as well have confirmed that the 7% annual bonus is no longer a perk for new card members. It looks like changes most likely went into place this morning so if you apply today chances are you will not be grandfathered into this 7% benefit. Those that are an existing card member will have this benefit until December 31, 2015. Additionally, ALL card members (regardless of when you applied) will get two new benefits: 1) An increase in trip cancellation/trip interruption (from a maximum payout of $10,000), and 2) Primary rental car collision insurance. I’ll write more about these two benefits this week – especially #2 as it is a great perk!
A few bloggers have written about the possibility of the 7% annual bonus for the Chase Sapphire Preferred card being eliminated in the future, but yesterday blogger One Mile at a Time informs us that this change might actually happen this coming Monday, July 21, 2014. UPDATE: This change might have actually taken place this morning (Sunday July 20, but again no 100% confirmation – but I’d be cautious applying today and assuming you’ll get the 7% bonus).
While there is no definite confirmation of this elimination, sources seem to be valid. If the Chase Sapphire Preferred credit card was on your short list of cards to apply for, you might want to consider it now. From what I read, as well as a phone call into Chase myself, those who already have the card will be grandfathered into the 7% annual bonus program. However, those who apply for the card on July 21st or later will no longer have access to this yearly bonus. The grey area is for those who apply now – the application does not currently include the 7% annual bonus as a benefit, although those who have recently applied state that the bonus is listed in the membership terms guide they receive with the card.
While nothing is definite, chances are if you apply for the card before Monday you’ll still be grandfathered into this program. I have no official information so if you apply do know that this benefit is not guaranteed as of this point! I hold no responsibility, but I do have my fingers crossed! And reliable sources do make it sound like you should be good. I personally hope they do not eliminate this benefit ever!
So what exactly is this 7% annual bonus anyways? After each calendar year, you will receive a 7% bonus on all points earned on the Chase Sapphire Preferred card from that year. So let’s say you earn 20,000 points in 2014, at the beginning of 2015, you will earn an additional 1,400 points. While this is by no means the main benefit of the card, it is nice to get free points! With this perk, it means that you ultimately receive 2.14x points on all dining and travel purchases!
And while the bonus points are nice, I am not suggesting applying for this card spontaneously if you are not ready to apply for another card just yet. I do personally like this card in general and is one of my two go-to cards for everyday spend (that along with the Starwood American Express). For me, it is one of the best all around cards.