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Updated on Wednesday, November 2, 2016
If you frequently travel for business or leisure, a travel rewards credit card is one you want to keep close. Using a travel card to earn and redeem rewards can lower your out-of-pocket travel costs.
The Capital One Venture Rewards Credit Card is a credit card that rewards cardholders in miles for everyday spending. The miles you accumulate can be used to cover the cost of flights, hotel accommodations, and more through the Capital One rewards center. In this post, we’ll dive into:
- The credit card basics
- How to redeem cashback
- The fine print details
- The pros and cons
The Basics of the Capital One Venture Rewards Credit Card
- Earn unlimited 2 Miles per dollar on every purchase, every day
There’s no cap on how many miles you can earn. 100 miles earns you $1 in travel rewards, so 1 mile equals 1 cent when you redeem miles for travel purchases.
- Earn a Enjoy a one-time bonus of 60,000 miles once you spend $3,000 on purchases within 3 months from account opening, equal to $600 in travel
How to Redeem Miles Earned
Capital One has temporarily expanded the Capital One Venture Rewards Credit Card‘s redemption options to include eligible restaurant delivery, takeout and streaming service purchases through June 30, 2020.
You can also use miles to book travel first with your Venture card and then use miles to credit the travel purchases on your statement. Or you can use miles like cash to pay for new travel bookings upfront. Miles are worth 1 cent each when redeemed for travel.
Here’s how to do it:
Using miles to credit past travel purchases
After making a travel purchase on the card, log in to your online account or call the Capital One rewards center to use the Purchase Eraser tool. The Purchase Eraser feature will credit your account for qualifying travel purchases. You must use the Purchase Eraser tool within 90 days of making a travel purchase for it to be eligible for statement credit. It usually takes two to three days for the amount to be credited to your account. You may also be able to do partial redemptions to cover a portion of the cost of travel, but this is subject to minimum redemption amounts.
Previous travel you can get a credit for includes:
- Bus fares
- Car rentals
- Hotel accommodations
- Limo services
- Taxicab fares
- Train fares
- Travel agency costs
Using miles to pay for new travel bookings
For new travel bookings, you also log in to your online account or call the Capital One rewards center. You can book flights, car rentals, and hotel accommodations with your miles.
Besides travel, you can also cash in miles earned to receive a gift card, check, or account credit (for non-travel purchases). Gift cards have the same value as travel redemption. However, the value you get for a check or account credit on non-travel spending is only 50 cents per mile.
Venture cardholders will get the most bang for their buck on gift cards and travel. For example, if you use the 40,000 bonus miles to request a check, you’ll only get $200. Using the bonus miles for travel or a gift card instead will get you 50% more value.
The Fine Print and Fees
The Capital One Venture Rewards Credit Card doesn’t hit cardholders heavy with fine print or fees. There’s no limit to how many miles you can earn, and miles never expire. Participating in the rewards program will be smooth sailing as long as you pay the monthly bill on time. You forfeit miles you earn during any billing cycle when you’re charged a late fee.
We briefly mentioned the card’s annual fee, $95. You’ll need to spend at least $2,950 each year on the card to earn enough miles to cover the cost of the fee in travel rewards value.
The credit card APR is 17.24% - 24.49% (Variable). To get the most value from the Capital One Venture Rewards Credit Card (or any rewards card, for the matter), you need to pay off your entire balance in full each month to eliminate interest charges. Otherwise, interest charges from a revolving balance will decrease how much you’re really gaining from miles earned.
Benefits and Protections
Let’s cover the protections the Capital One Venture Rewards Credit Card can offer you while globetrotting since it’s a rewards card for travelers. There’s $0 fraud liability, which means you won’t be held responsible for unauthorized purchases if your card is lost or stolen.
The Capital One Venture Rewards Credit Card also comes with travel accident insurance and 24-hour travel assistance. The card comes with rental car insurance that can cover you for rental car collision and theft.
Pros and Cons
Pro: Waived annual fee the first year and miles bonus. New Capital One Venture Rewards Credit Card cardholders have a major opportunity to benefit from bonus miles and a $95 annual fee. Say you already plan to take a trip or make a major purchase over $3,000 in the next few months. You can apply for the card and charge the purchase to your new account. This will automatically earn you 50,000 miles to put toward another trip.
Con: The annual fee. The $95 annual fee waiver is a pro, but the fee for following years may be a deal-breaker if you don’t plan to spend enough on the card.
Pro: No cap. Earning unlimited miles is a positive for big spenders.
Con: The redemption value for cash and statement credit. If you want to use your miles for something other than travel, such as cash or a statement credit (for non-travel purchases), you will only get 0.50 cents per point. The Capital One Venture Rewards Credit Card is a travel rewards card, so it’ll likely attract cardholders who want to use miles for travel bookings, and the lower redemption value on other options may not be a huge deal. Just be mindful that you will get less for your miles if you use them for something else.
Pro: No foreign transaction fee. Many travel rewards cards besides the Capital One Venture Rewards Credit Card card don’t have foreign transaction fees. We’ll cover a few of them below. Not having this fee is a pro, but it’s also something that’s fairly common among travel rewards cards.
Other Travel Rewards Credit Cards to Consider
The Chase Sapphire Preferred® Card offers you 2X points on dining at restaurants including eligible delivery services, takeout and dining out and travel & 1 point per dollar spent on all other purchases worldwide When you use Chase Ultimate Rewards® to redeem points, 1 point equals 1 cent.
There are two standout aspects of the Chase Sapphire Preferred® Card that can benefit travelers. Points are 25% more valuable when you use them to book travel through Chase Ultimate Rewards®. You can also transfer the points you earn to other rewards programs, 1:1.
You can earn 60,000 bonus points after you spend $4,000 on purchases in the first 3 months from account opening. That's $750 toward travel when you redeem through Chase Ultimate Rewards®. The Chase Sapphire Preferred® Card has an annual fee of $95.
The Bank of America® Travel Rewards Credit Card allows you to Earn unlimited 1.5 points per $1 spent on all purchases and has a $0 annual and no foreign transaction fees. The card gives 25,000 online bonus points after you make at least $1,000 in purchases in the first 90 days of account opening - that can be a $250 statement credit toward travel purchases. This equals $200 in a statement credit or travel purchases.
Preferred Bank of America cardholders who have a balance of over $20,000 in a Bank of America banking or Merrill investment account can earn an extra 25% to 75% bonus on their rewards points. Ultimately, current Bank of America customers will likely get the most value from this card.
If you prefer to stick with Capital One, there is also the Capital One VentureOne Rewards Credit Card. This card offers unlimited 1.25 Miles per dollar on every purchase, every day and has a $0 annual fee and no foreign transaction fees. The card earns a Earn a bonus of 20,000 miles once you spend $500 on purchases within 3 months from account opening, equal to $200 in travel.
Comparing the Capital One Venture Rewards Credit Card and Capital One VentureOne Rewards Credit Card side by side, Capital One VentureOne Rewards Credit Card may be the better choice if you’re unlikely to spend $3,000 within the first three months. However, Capital One Venture Rewards Credit Card may be worth it if you are able to receive their 50,000 bonus miles, especially with the $95 annual fee.
Who Will Benefit the Most from the Capital One Venture Rewards Credit Card?
The Capital One Venture Rewards Credit Card has no spending cap, so if you use plastic often, this could be a card that will reward you well.
You still need to make sure you’re prepared to spend enough on the Capital One Venture Rewards Credit Card for it to be worthwhile. Estimate what your spending activity on the card will be each year to see if you’ll spend enough to cover the fee.
The information related to the Chase Sapphire Preferred® Card and Bank of America® Travel Rewards Credit Card has been independently collected by MagnifyMoney.com and has not been reviewed or provided by the issuers of these cards prior to publication.