If you watch television, you’ve likely seen a commercial or two for the Capital One Venture card. These ads feature a hot, A-list celebrity going on about the card’s benefits to anyone who will listen.
But what’s all the hype about the Venture card? Why should an average consumer consider putting it in their wallet?
Today, we’ll discuss the hidden truths behind the Venture card that begs the question:
Is it worth it for you to make the switch?
To answer the above question, we have to take a look at the Capital One Venture card and all that it has to offer consumers interested in financing.
- 50,000-bonus miles when you spend $3,000 in the first 3 months, that’s $500 in travel cash
- Points on every purchase, bonuses given for spending on travel related items
- No foreign transaction fee
The annual fee on the Capital One Venture card is moderate at $95. That’s a reasonable fee in the world of credit, and it’s only assessed after your first year as a customer.
Your first-year membership fee is $0.
Rewards and Perks
The card comes with a number of bonuses and rewards that amount to the following:
- 50,000-mile bonus for spending $3,000 on purchases in an initial three-month period, a total bonus value of $500 worth of travel cost
- Miles are unlimited, don’t expire and cardholders always get double miles on purchases
- Earn a perk of 10-miles per dollar when you use your Capital One Venture card on hotel stay purchases
- Fly on any airline or stay in any hotel to earn miles that have no blackout dates
- No foreign transaction fees are assessed
When evaluating the rewards system, it’s important to note that one mile is equal to one cent.
The annual percentage rate (APR), or interest, on the Capital One Venture Card comes in between 14.24% – 24.24% and is variable based on credit score and decision.
Other Comparable Cards
There are two cards worth comparing to the Capital One Venture card. These are:
- Capital One VentureOne card
- The Chase Sapphire card
Keep reading to see the similarities and differences between the Capital One Venture card and another card that might be in your wallet right now.
Capital One VentureOne
- 1.25x-miles on every purchase
- 20,000-miles back when you spend $1,000 in the first month
- 10-miles for every dollar spent on hotel stays
The Chase Sapphire
- $0/first year, $95 additional year membership fees
- 50,000-bonus miles when you spend $4,000 in the first 3 months, that’s $625 in travel cash — miles are worth 1.25 cents
- Points on every purchase, bonuses given for spending on travel and dining
- No foreign transaction fee
There are many advantages to carrying a Capital One Venture card. Among these are the following ‘pros’ for cardholders:
Incentivizes Travel Related-Purchases:
If the goal of a travel card is to reward you for traveling this card answers the call! It’s hard to argue with $500 in travel perks and bonuses for bookings.
When compared to other cards that offer travel perks, the Capital One helps cardholders actualize value with competitive rewards and rates.
The Venture card is accessible to many people who have fair to good credit scores.
While the Venture card delivers on travel perks, being accessible and being competitive, there are still a few reasons a consumer might want to steer clear of requesting it:
The card delivers double points on every purchase. But points are valued relatively low. Capital One is offering each point valued at one penny, which is lower than Chase and other card financiers.
With the Venture card, Capital one is hoping to appeal to traveler’s, but the point system acts more like a cash-back reward card than a travel points card.
In a traditional travel point market, consumers can use points to purchase first-class plane tickets at a discount. That’s not so with the Venture card.
Instead, you earn pennies on qualifying purchases, much like a cash-back card. But unlike a cash-back reward card, the Venture card requires the points be spent on travel only.
For people with reasonably good credit who like to travel, the Venture card is a good choice. But keep in mind it doesn’t provide the same flexibility as a cash-back rewards card, or the same offerings as a traditional travel card.
Those who are good at saving money for travel might reap more value from a cash-back rewards system that offers more per point. And travel aficionados may want the perk of first class tickets at a reduced price.
For those people, and people with less-than-stellar credit, it makes more sense to seek other options with the help of a professional in personal finance.
Double points sound awesome in theory, but in practice when the value of a single point is very low, the reward isn’t as remarkable as it sounds.
Will You Venture?
This Capital One card helps consumers get value out of all their purchases, especially travel-related ones, with point incentives that provide cash-back for traveling. But it isn’t the only card out there that can make that claim.
With a number of options to choose from, it’s important that every-day shoppers understand their options and what’s important to them.
To learn about what cards are best for the savvy traveler and more about personal finance, visit Bonsai today. We help you find personal financing options to meet the demands of your lifestyle, click here.