The internet was on fire with the recent 100,000 mile sign up mileage offer for the Sapphire Preferred card.
And with good reason. This card has a litany of fantastic perks for an annual fee of $95. Points are earned in the Chase Ultimate Reward system, one of the best award redemption programs in the game. With 11 airline and 3 hotel transfer partners, the flexibility is a key feature to the tremendous value of these points.
The card offers solid benefits for the cost, and it has continued to be a staple in my wallet. But one of the most incredible features of this card is something that does not garner much attention, and that is the option to add unlimited authorized users at no additional cost.
What is an Authorized User?
Authorized Users are people that can be added to a credit card account without needing to apply on their own. They will not pay the annual fee or undergo a credit check, but will still gain access to the card’s benefits. and share the credit limit of the primary cardholder.
Authorized users do not need to be family members, but do make sure they are trustworthy additions to the account as the primary account holder will ultimately be legally responsible for all charges on the credit card (outside of fraudulent activity).
Another benefit of being an authorized user is having access to all the additional travel insurance, warranty extensions, and purchase protections that come with holding cards in the Chase Sapphire card family. For travel protections such as trip delay, trip cancellation, bag delay, and accident insurance booked with the credit card, these protections will cover the authorized user and immediate family traveling on the same booking.
Adding Authorized Users can help build credit
Being an authorized user on an account helps to establish credit history and build credit.
For anyone needing to build credit or rehabilitate their credit score, becoming an authorized user can be an effective and free resource.
Some savvy parents add their children as authorized users early on to help build credit history. By the time they graduate high school and are looking for apartments of their own, the kids have strong credit which eliminates the need for parents to co-sign on a rental which would normally be required in the absence of any credit history.
Earning more points with Authorized Users
Adding authorized users can be a smart way to maximize credit card points as all spending contributes to the primary account holder’s Ultimate Rewards Account. This can be an ultimate strategy for families with dual benefits- kids can begin to build credit from an early age while combined purchases from multiple users can boost the points earn into one loyalty program that can be redeemed for future family vacations.
Final Thoughts
For a card with a $95 annual fee, adding this card into your collection is a no brainer, especially if you have any intention of adding authorized users to the account.
Although it lacks more premium features such as airport lounge access and elevated hotel credit, this card remains an excellent choice to add to your wallet.
Compared to the Chase Sapphire Reserve that charges $95 for each additional authorized user, the Preferred knocks it out of the park, especially since it still includes many of the travel protections and warranties offered for the Reserve.
The Reserve continues to be the premium credit card for travelers, with perks including lounge access through the Priority Pass network, an additional $250 in hotel credit and $120 to cover TSA precheck or Global Entry fees, but with a whopping $550 annual fee and $95 for each additional authorized user, the additional multiplier on the travel category (3x for Reserve and 2x for Preferred) and the handful of extra bonuses just does not feel worth it.
If you want to help build credit for loved ones or simply want to extend any kind of warranty or travel protections, the Chase Sapphire Preferred is a fantastic option.
The only other card that comes close to similar perks with free authorized users is Venture X credit card from Capital One. Although it is one of my favorite travel credit cards, the annual fee is significantly more than the Chase Sapphire Preferred at $395. See my review of the Venture X card here.
For further details about the Chase Sapphire Preferred credit card, please visit their website here to review the latest updates.
If you are ready to sign up for the credit card, please feel free to use my referral link here.
