Originally Posted by Productivity

That's the point about the free cards and the 'premier' (with annual fee) cards. If you only have free cards, you can't redeem for anything but cash back. If you have a annual fee card you can transfer it to that to turn it into other points.

Originally Posted by Productivity

There most certainly is an annual fee for a Sapphire Preferred. It may be waived the first year but there still is a fee. Again without it (or one of the Ink cards or the Palladium) you couldn't have turned your Ultimate Rewards earned on the Freedom or Freedom Unlimited into Hyatt points.