If you’re not spending a lot, the annual fee for one of the best travel credit cards could cost you more than the rewards you deserve. The Capital One Venture One credit card.
The Capital One Venture Rewards credit card – but with a lower reward rate and fewer benefits. Miles accumulated on your card can be transferred to partner airlines and hotels or directly redeemed as a settlement credit for authorized purchases. It also offers some perks that aren’t normally seen on an annual pass.
Capital One Venture One – Who is this card for?
Capital One continues to massively update its tickets, with the recent addition of four new transfer partners and an improved 1:1 transfer rate for select programs. For those who prefer the direct option of earning and redeeming rewards, you can also use your miles to pay for travel purchases that were charged to your card within the last 90 days.
Matematica says you should Opt for the VentureOne Card, no annual fee over the standard Venture Card if you spend less than $12,667 on daily purchases per year. The biggest difference between the cards is the earning rates on daily purchases, 2x for Venture versus 1.25x for VentureOne – and that number is the break-even point for paying Venture’s $95 annual fee in rewards.
Sign-up bonus Capital One Venture One
In the beginning, the math is a little different. Capital One VentureOne offers a 20,000 sign-up bonus miles after spending $500 on initial purchases for three months before opening an account. Based on TPG ratings (not provided by issuer), which set Capital One Venture miles at 1.7 cents each, this sign-up bonus is worth $340. This is significantly less than the Venture Card bonus, which currently is up to 60,000 miles (after spending $3,000 on purchases in the first three months after opening the account) and rated by TPG at $1,020.
The 20,000 bonus is still more valuable than many others that don’t offerretirement cards. Also, the spending requirement for this card’s bonus is much easier to meet than for the Venture card, with only a $500 spending limit.
VentureOne’s earnings program is virtually identical to the Venture Rewards card, valued at $95 per year, but with a slightly lower return on your daily expenses. Earn 1.25 miles per dollar on all other purchases, which is a solid 2.13% return on TPG analytics. While it’s decent, it’s not the best value for money. The advantage of having an unlimited win rate, however, is that you don’t need to keep track of multiple bonus categories, easy trading to maximize value.
You have a few options when it comes to redeeming miles outside the resort. The most direct way is to use them to pay for qualifying purchases as a credit on your bank statement. This allows you to access your Venture Rewards account online and redeem miles for 1 cent each to credit eligible travel purchases made with the card in the last 90 days to your bank statement.
It includes many travel expenses that don’t cover traditional miles, from traveling on Uber to staying on Airbnb. There are no payment schedules or blackout dates and no minimum redemption amount is required. If you choose this route, your 20,000 sign-up bonus will be worth $200 for the trip.
However, to get even more out of your sign-up bonus, be sure to try the more advanced redemption option – Maximizing Capital One’s Transfer Partners. Capital One now has 16 airlines and three partner hotels (one of which will start in 2021) to transfer your miles to, including Avianca LifeMiles, British Airways Avios, Etihad Guest and Turkish Airlines Miles & Smiles.
Transfer fees vary by partner. Capital One added a 1:1 ratio for nine partners (meaning that for 1 risk mile you earn 1 point/mile for a transfer partner). However, some programs still offer a lower ratio of 2:1.5 or 2:1. In other words, you’ll earn 0.625 to 1.25 airline miles (or hotel points) for every dollar you spend on your VentureOne card. This redemption option is a little more advanced than just redeeming fees for a fixed amount, but it’s not as difficult as it sounds.
Unlimited rewards on every purchase; Decent single offer. Flexible redemption options; No annual fee; No brand or specific type of travel commitment.
Capital One Venture OneNo Annuity Unlimited Rewards Flexible redemption options Miles Program
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