A Simple Travel Rewards Card for the Average Traveler
Credit Needed: Good/Excellent
Capital One Venture Rewards Credit Card is designed to make booking travel plans a little bit easier. The card earns unlimited double miles per dollar spent on all eligible purchases. This means any travel purchases or any groceries you buy will earn double miles. You will receive a one-time early spend bonus of 100,000 miles when spending $20,000 in the first 12 months. Or, you can still receive a one-time early spend bonus of 50,000 miles for spending $3,000 in purchases within your first three months of owning the card. Your rewards won't ever expire as long as your account remains open.
Then once you've easily earned enough miles, they are best redeemed toward travel purchases. This is because when redeemed for travel rewards, every 100 miles equals $1. So if you have 60,000 miles that will get you $600 toward travel rewards. You can use your earned miles to book flights, hotels or car rentals through Capital One's Rewards Center. Already made travel plans on a different travel website? As long as you made your purchase with your Capital One Venture Rewards Credit Card, you can use Capital One’s Purchase Eraser to redeem your miles for an account credit for the full or partial cost of your travel purchase.
While you can redeem your miles for other rewards, the return isn’t as great. You can use your miles toward cash back in statement credit or a check, gift cards and more. You can find out about the rates of redemption for those rewards once you have a Capital One account.
The Capital One Venture Rewards Credit Card comes with an annual fee of $95, which is relatively low considering all the perks the card carries. These include, but are not limited to, travel upgrades, auto rental insurance, extended warranties and no foreign transaction fees. Capital One further provides protections when it comes to account security and convenience. For one, you can choose your own monthly due date and payment method. You can also enable autopay and account alerts so you never miss a payment or notification.
Your Capital One Venture Rewards Credit Card purchases and transfers carry an APR of either 17.24% - 24.49% Variable, based on your creditworthiness and the Prime Rate. The APR for cash advances is 24.49% Variable, but will vary with the Prime Rate. Cash advances will also cost a fee of either $10 or 3% of the transaction amount, whichever is greater. Luckily, there is no penalty APR. You will still be charged a fee of up to $40, however, for late payment.
No foreign transaction fees - This feature always comes in handy with a travel card like Venture Rewards. Whether you’re making travel plans through a foreign website or using your card at a European supermarket, you won’t have to worry about an extra charge from Capital One.
No penalty APR - Capital One won’t hit you with higher rates should you forget about payment.
Auto rental collision protection - When you pay for a rental vehicle with your Capital One card, Capital One can cover you for damage and theft of the vehicle.
24-hour travel assistance - If you’re traveling and your credit card is lost or stolen, Capital One can provide you with an emergency replacement card and a cash advance.
Travel accident insurance - In case an accident should befall you or your family, you get automatic coverage at no extra charge as long as you used your Capital One card to pay for your travel plans.
Extended warranties - Capital One will extend warranties on your eligible purchases made on your Capital One card.
Visa Signature benefits - These include complimentary travel upgrades and savings when relaxing at hotels, resorts and spas, 24/7 concierge service, shopping discounts and more.
Easy account management - Capital One makes it easier for you to manage your account and your money through account alerts, letting you choose your own due date, autopay and 24/7 customer service.
Security measures - With account alerts, you can be notified immediately about any suspicious account activity. In case of fraud, you won’t ever be liable for those charges.
Who it Benefits
First off, Capital One stresses that you must have excellent credit to apply for the Venture Rewards Credit Card. So if you do not have excellent credit, you probably won’t be eligible for Venture Rewards. That said, if you do meet the qualifications, you stand to benefit from this card if you like to travel.
All eligible purchases will earn you two miles per dollar spent. This means that your everyday purchases will reward you. You don’t have to be constantly spending on travel to earn miles and rewards. This benefits people who like to travel, but aren’t necessarily constantly on the road. When you’re home and buying groceries or filling up the tank, those purchases can get you closer to your next vacation.
How it Works
With the Capital One Venture Rewards Credit Card, you earn two miles per dollar spent on all eligible purchases. There is no limit to how many miles you can earn, nor will they expire as long as your account is open. You will receive a one-time early spend bonus of 100,000 miles when spending $20,000 in the first 12 months. Or, you can still receive a one-time early spend bonus of 50,000 miles for spending $3,000 in purchases within your first three months of owning the card.
When redeemed towards travel purchases, every 100 miles equals $1. You have a number of options when redeeming towards travel purchases. You can book flights, car rentals or hotel stays through Capital One, using your miles to pay. Or, if you use your Capital One card to book travel plans through any travel outlet, you can utilize Capital One’s Purchase Eraser. With Purchase Eraser, you can redeem your miles after your travel purchase, and you’ll receive a statement credit for the full or partial cost of your travel purchase. You have to use Purchase Eraser within 90 days of your original purchase.
You could also redeem your miles toward other rewards like cash back, gift cards and more. However, you won’t get as much for your miles with these options. You will have to become a Capital One cardholder to find out the exact rates of return for those rewards.
As a Capital One Venture Rewards cardholder, you get access to a number of benefits and perks. This includes auto rental collision and theft protection, travel accident insurance, extended warranties and security assistance and protections. This card also carries further Visa Signature benefits like complimentary travel upgrades and savings, 24/7 concierge service and shopping discounts.
The card carries an annual fee of $95. There is no foreign transaction fee, though, nor a penalty APR. When paying off purchases and transfers, a variable APR of either 17.24%-24.49%, based on your creditworthiness and the Prime Rate, will apply. The APR for cash advances is 24.49% Variable and will vary with the Prime Rate, as well. Cash advances also cost a fee of either $10 or 3%, whichever amount is greater. Luckily, you get to choose your own due date and payment method. Autopay and account alerts will also help you stay current on your payments.
What’s the Catch
The card’s catch is that your best redemption options are travel purchases. So you would have to use this card’s miles mainly to make travel purchases. This could be good news for frequent travelers, but people often want more from a rewards credit card. While being able to use miles toward travel plans isn’t a bad thing, there are other cards that offer good redemption rates for both travel and other options like cash back or merchandise.
Just the Math
You earn two miles per dollar spent on all eligible purchases. You will receive a one-time early spend bonus of 100,000 miles when spending $20,000 in the first 12 months. Or, you can still receive a one-time early spend bonus of 50,000 miles for spending $3,000 in purchases within your first three months of owning the card. When redeemed for travel rewards, 100 miles = $1.
The APR for balance transfers is 17.24%-24.49%, based on your creditworthiness and is variable with the Prime Rate. There is no transaction fee for balance transfers.
Interest Rates and Fees
Annual Percentage Rate (APR) for Purchases
17.24% - 24.49% Variable based on your creditworthiness. This APR will vary based on the Prime Rate.
APR for Balance Transfers
17.24% - 24.49% Variable based on your creditworthiness. This APR will vary based on the Prime Rate.
APR for Cash Advances
24.49% Variable, varies depending on the Prime Rate.
Penalty APR and When It Applies
How to Avoid Paying Interest on Purchases
Your due date will be a minimum of 25 days after the close of each billing cycle.
Capital One will not charge you interest on purchases if you pay your entire balance by the due date each month. You will be charged interest on cash advances starting on the transaction date.
Balance Transfer 3% if Capital One offers you a promotional APR. None, if your balance is transferred at the regular transfer APR.
Cash Advance $10 or 3% of each transaction, whichever is greater
Foreign Purchase Transaction
Late Payment up to $40
Returned Payment None
On the whole, the Capital One Venture Rewards Credit Card is a solid card for the everyday traveler. By earning double miles on every purchase, you can get to your vacation goal faster than without a travel rewards card. The card may not be the best for super frequent travelers, though. While earning double miles on everything is great, there are cards that can earn frequent travelers much more on travel purchases and all other expenses, too.
Luckily with this card, you won’t be limited to a certain airline or hotel. So whether you purchase travel bookings through Capital One or not, your earned miles can get you to your vacation just the same. Especially beneficial is the solid return rate of $1 for every 100 miles when redeemed towards travel. You also don’t have to worry about a foreign transaction fee when you take your card on your abroad travels.
Even though the card’s $95 annual fee isn’t high, you should make sure that you can afford the fee before applying. You will especially want to take into consideration what your APR will be since the rate will depend on your creditworthiness. Should you get this card, you should take advantage of the opportunity to choose your own due date, as well as the autopay option. Even without a penalty APR, you won’t want to get charged any more than you really need to. That way, you’re free to make the most of your rewards.
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