Or, consider other cards for 50,000 more miles or points that transfer into United miles with additional flexibility for your everyday spending.
$1,000 toward travel or transfer to United, Southwest, and more.
Citi® Hilton HHonorsTM Visa Signature® Card - no annual fee.
The new American Express EveryDay Preferred credit card, which is available starting April 2, 2014, is a legitimate new contender in the race for getting the most reward value out of your credit card spending.
For a few years now the Chase Sapphire Preferred Card has been an easy choice for saving for travel rewards, thanks to 2x points on dining and travel spending, and powerful point transfer partners including Southwest Rapid Rewards and United MileagePlus which make getting good value out of flight awards easy.
But the Amex EveryDay Preferred is making that decision harder because it is possible to earn over 2x Membership Rewards points on your total spending with the EveryDay Preferred without a lot of effort. And those Membership Rewards points can be transferred to many airline mile programs including Delta, British Airways, and Air Canada, while the annual fee is the same as the Sapphire Preferred at $95. You can also use points as cash towards travel with 10,000 points = $100 in travel, a truly hassle free fall back option.
Here’s why the EveryDay Preferred earns so quickly…
Our upfront advice is this:
Use our CardFinder tool to see exactly how the cards compare on point earning based on your monthly spending. We’ve factored in differences in value per point to help you see which will save you more.
It’s the only way to get a really accurate picture, though to get the best comparison make sure you check the results for ‘ongoing years’ and not just the first year because the EveryDay card doesn’t have a big sign on bonus.
Some basic guidelines for comparing the cards are:
The Amex EveryDay card’s 50% bonus and gas / grocery category boosts add up to powerful earning. Here are some examples versus the Chase Sapphire Preferred with $2,000 a month in spending:
With $200/ month dining, $200 gas, $500 groceries
With $500/ month dining, $200 gas, $500 groceries, $200 travel
With $500/ month dining, $0 gas, $0 groceries, $200 travel
So even if you don’t spend in the gas or grocery categories it’s still possible to earn more points with the EveryDay Preferred than the Chase Sapphire Preferred because of the 50% bonus on all points when you use the card 30 times each month.
You can see for yourself how point earning stacks up for the EveryDay Preferred, Chase Sapphire Preferred, and dozens of other travel rewards cards with our CardFinder tool.
Unfortunately while the Membership Rewards points the EveryDay card earns and the Chase Ultimate Rewards points the Sapphire Preferred earns sound similar, they are actually quite different.
Let’s take domestic flight awards for example.
The good news is we’ve done that math for you, so when you use our CardFinder tool the reward value we use factors the different point values to help you out. But the rule of thumb is unless you have a bunch of Delta SkyMiles to top off, you’ll need to earn about 20% more points with the EveryDay card to get more value than the Chase Sapphire Preferred. And that’s not hard with the 50% bonus on points earned each month you make 30 or more transactions.
If you are set on your Chase Sapphire Preferred you can still take advantage of the EveryDay card and some of its bonuses.
While it’s a lot to ask to carry two $95 annual fee cards in your wallet, there is a no annual fee version of the EveryDay card, and it earns a 20% bonus when you have 20 transactions in a billing month and offers 2x points on grocery spending (2.4x with the 20% bonus), up to $6,000 in spending per year.
So you can use the Sapphire Preferred where it’s strong – dining and travel, and the EveryDay for groceries and getting a 20% bonus each month. Then as you use it you can decide whether you want to upgrade to the EveryDay Preferred and focus more of your spending there.
And you can even justify carrying both the $95 EveryDay Preferred and Chase Sapphire Preferred.
As long as the EveryDay Preferred earns you an extra 10,000 or so points a year than other options it’s made back its $95 annual fee in value. That takes spending just $500 a month on groceries and hitting the 30 transaction per month bonus. And the Chase Sapphire Preferred will pay for itself if you use it for nothing but travel and dining spending as long as you spend about bout $800 a month on it.
While both the Amex EveryDay Preferred and Chase Sapphire Preferred have good protection for purchases, there are some key differences in travel benefits, including:
You shouldn’t overlook the value of the Chase Sapphire Preferred’s flight delay coverage. If your flight is delayed 12 hours or more, or overnight you’ll get reimbursed for several hundred dollars worth of expenses like hotels and meals when the airline leaves you out in the cold. That’s especially valuable when bad weather hits because airlines have no responsibility to help you out when weather causes a delay, and you could be stranded for days at a time. All you have to do is book your ticket with the Sapphire Preferred Card to be eligible for the benefit.
The new Amex EveryDay Preferred and the Chase Sapphire Preferred Card are both great credit cards for rewards. They combine the flexibility of transferable points with powerful category earning boosts to give you really solid reward value. It’s hard to go wrong with either, but for the first time the Chase Sapphire Preferred has some serious competition for a lot of spending. There’s some tricky math involved, but our CardFinder tool will help you sort through it.
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