There are typically two types of rewards credit cards: cash back credit cards and travel rewards cards. If you’re a jet-setter, a travel rewards card is probably most appealing; if you’re a homebody, cash back is the way to go.
But what if you want both? While the Capital One Venture Rewards Card is marketed as a travel rewards card, savvy users will find that it’s actually a very good cash back card as well – thus making it an impressive “combo” card.
Capital One Venture Card Double Miles Challenge
In 2011, Capital One offered one of the best credit card sign-up bonuses ever for its, then new, Venture Rewards card with a promotion called “Match My Miles.” New applicants were able to submit their frequent flyer mile balances, and Capital One would offer an equivalent amount of their miles, up to 100,000 as a sign-up bonus. Considering that each of Capital One’s miles is worth one cent as a statement credit towards any travel related expense, this promotion was worth as much as $1,000.
For some time, there have been rumors that Capital One would resurrect this promotion in some form or another. Ultimately, Capital One released the details of their Double Miles Challenge. New applicants of the Venture Rewards card are able to earn a sign-up bonus in miles equal to double the amount spent in 2011 on a competitor’s mileage earning credit card. Here’s how it works:
- First, customers must receive their new card and register for the promotion within seven days.
- Next, cardholders must fax in a year end summary from a competitor’s mileage earning card. Any card that earns travel rewards that can be converted to airline miles will qualify.
- For each dollar spent in 2011, cardholders will receive two Capital One miles.
- Finally, holders of other Capital One cards that upgrade their product to the Venture Rewards card will qualify for this promotion. Like the previous promotion, there is a limit of 100,000 miles that can be received. In this case, customers will earn the maximum amount of miles if they are able to present a year end statement showing at least $50,000 in spending. Also, this promotion is limited to the first billion miles handed out.
How to Use Capital One Miles
Like an airline, Capital One uses the term “miles” to refer to their loyalty points. Nevertheless, these miles can be redeemed for one cent each as a statement credit towards any travel related expense. Cardmembers simply log on to their account, select the hotel, airfare, or rental car charge they wish to be reimbursed for, and Capital One will credit their account for the equivalent amount.
Capital One and other card issuers have shown that they are willing to spend whatever it takes to earn new business. By taking advantage of valuable sign-up bonus offers like this, credit card users can earn hundreds of dollars of rewards just for giving companies an opportunity to earn their business.
Let’s look at the pros and cons of the Capital One Venture Rewards Card to see if it’s the right rewards card for you.
Key Features
- Two “Miles” Per Dollar Spent. Though it’s marketed as a travel rewards card and you earn two “miles” for each dollar you spend, the miles aren’t just valid towards airfare as they are with other travel cards. Each mile is actually worth one cent and can easily be redeemed for any travel expense such as airline tickets, hotel stays, or car rentals – and you’re not limited to any specific companies or airlines. For example, if you have 20,000 miles earned, you can use those miles toward any $200 hotel stay, train ticket, or flight. In essence, the Venture Rewards card is a cash back card that delivers a remarkable 2% return on all expenses.
- Sign Up Bonus. If you take advantage of the Double Miles Challange, you can receive miles worth up to $1,000! Their other current offer is a sign up bonus of 10,000 miles, worth $100. To receive it, you must charge $1,000 in the first 90 days.
- $59 Annual Fee. This is a modest fee compared to other credit cards, and it’s waived your first year. One way to look at it is that the fee will pay for itself after you spend $3,000.
- No Foreign Transaction Fees. Foreign transaction fees are a terrible rip off. Most credit cards charge between 1-3% on all transactions processed outside of the United States for no reason other than the fact that they can. While some other credit cards, like the American Express Platinum, have recently announced that they will be eliminating these fees, Capital One has never charged this on any of its cards in the first place.
- 11.9% to 19.9% Variable APR. The interest rate you receive will vary based on your credit history. It will change further depending on the Prime Rate.
Advantages
- Outstanding Reward Rate. While some cards may offer higher cash back rewards on purchases during some periods, 2% cash back is the highest non-promotional rate offered by a credit card on all purchases. So long as you spend at least 2% of your charges on something that is travel-related, the miles granted are as good as cash.
- Earn Points and Miles on Awards. If you were to earn genuine airline miles that were redeemable for an award that was worth 2 cents per mile, you still would not earn miles on the award flight itself. Since this Capital One program issues their awards in the form of a statement credit, the airlines treat your award flights just like any other paid ticket. That means that you will earn miles, qualify for elite status, and can even be eligible for upgrades on your award tickets.
- Award Flexibility. Anyone who has ever tried to redeem an airline award seat knows that availability can be scarce at best, and non-existent in many cases. Capital One’s No Hassle award program is entirely independent of these restrictions, allowing you to book travel on any airline at any time.
Disadvantages
- Double Miles Promotion Requires Documentation. You have to show your year-end statement to claim the double miles. To receive all 100,000 possible miles, you would have to have spent $50,000 on a competing card.
- You Must Claim Credits for Travel Expenses. It’s not difficult to claim credits on the Capital One website, but it is an additional step you have to go through. And if you rarely travel, it will be difficult to claim your rewards. They do offer other redemption opportunities for merchandise and gift cards, but they are usually not as good as cash back.
- High Interest Rates. Like all rewards credit cards, you can expect to pay a higher interest rate than you would on a card that does not offer any kind of miles or cash back. Rewards cards are only for people who intend to pay off their balance every month in full and on time. If you ever have to carry a balance, you should consider a non-rewards card with a very low interest rate such as the Promise Card from PenFed.
- No Opportunity for High Value Redemptions. People who travel using frequent flyer programs from airlines hope to redeem their points for international business and first class award seats that normally cost thousands. If successful, this strategy can represent a value of far more than the one or two cents in value per dollar spent on a rewards card.
Final Word
If you travel occasionally, and are looking to avoid the unregulated lottery that frequent flyer programs have become, then the Capital One Venture Rewards card may be the best travel rewards card out there. Offering 2% cash back on all purchases, this credit card is a win-win for those who pay off their balance every month and want to save money on vacations.
Do you carry the Capital One Venture Rewards Card? In your experience, how does it compare to other cash back and travel rewards cards?
