Is the Capital One Venture Card worth it?
Key takeaways
- With a solid 2X miles per dollar earning structure and healthy welcome offer opportunity, the Capital One Venture Rewards Credit Card is a good choice for both simplicity and for maximizing rewards on everyday purchases.
- Make the card worth the annual fee by fully utilizing perks such as a Global Entry/TSA PreCheck application fee credit and flexible redemption options for travel purchases.
- The card’s value may be limited for those who do not travel frequently or prefer rewards that can be redeemed for cash back.
The Capital One Venture Rewards Credit Card was my very first foray into the travel credit card landscape, and I’m still glad for it years later. When I first signed up, I knew very little about credit cards. Suffice it to say, the $95 annual fee seemed daunting at the time, but it’s been easy to get more than the annual fee’s worth of value out of the Venture card each year I’ve owned it.
I love having a flexible miles card that also earns a flat rate of rewards on every purchase. Additionally, the card offers a welcome bonus of 75,000 miles when you spend $4,000 on purchases in the first 3 months after opening your account. That size of a welcome bonus (worth around $750 in travel) is typically only offered by the priciest luxury cards on the market. To top it off, for a limited time, you can also get a one-time $250 Capital One Travel credit during your first year as a cardholder.
So, is the Capital One Venture Card worth it? I think so, but it’s not for everyone. Here’s a breakdown to help you decide if this Capital One credit card is right for you.
Capital One Venture Rewards Credit Card: Overview
Capital One Venture Rewards Credit Card
Pros and cons of the Venture Card
To better understand whether the Venture Card is right for you, let’s break down the pros and cons.
Pros
- Flat rate unlimited 2X miles on all purchases and 5X miles on hotels, rental cars and vacation rentals through Capital One Travel
- Hefty welcome offer competes with luxury cards
- Metal card design
- Flexible points redemption
- Up to $120 Global Entry or TSA Precheck credit
- $50 experience credit at Lifestyle Collection hotels.
- No expiration date on your miles.
Cons
- No U.S.-based airline transfer partners
- Non-travel miles redemptions provide poor value
- No complimentary airport lounge access
- Cardholders who aren’t frequent travelers may find less value.
Reasons the Venture Card is worth the annual fee
The Capital One Venture Card comes with several benefits and a relatively low annual fee. Here are some reasons why this card may be worth it for you.
The welcome bonus is top-notch
The Venture card is currently offering 75,000 miles for spending $4,000 in the first 3 months after opening your account. Plus, for a limited time, you can also take advantage of a one-time $250 Capital One Travel credit during the first year you have the card.
While the full $4,000 spend threshold might be too high to meet for some cardholders, the value of this bonus is incredible for an entry-level travel card. If you redeem for travel purchases, those 75,000 miles can score you $750 worth of flights, hotels, rental cars and more when you redeem them for statement credit toward travel purchases.
You can also transfer your miles to one of Capital One’s high-value travel partners. According to Bankrate valuations, your miles could be worth about 1.7 cents each if you choose this type of redemption.
You earn a solid flat rate of miles on every purchase
Unlike other rewards credit cards that offer more rewards in particular categories of spending, the Venture card offers the same two-miles-per-dollar rate on nearly every purchase. This straightforward framework takes all the planning and guesswork out of earning with the card. There’s no need to only pull it out for certain categories of spending or worry about merchant category codes; simply swipe your Capital One Venture Card whenever you make a purchase and watch the rewards pile up.
The great thing about a flat-rate rewards card that offers a high earnings rate is that it suits multiple kinds of cardholders. Those who like to keep things simple with a go-to card for all their purchases can count on a competitive rate no matter what they buy.
Then again, cardholders like me who like to juggle multiple credit cards to earn more in particular categories have a lot to gain, too. That’s because the 2X miles per dollar earned on general purchases with the Venture is higher than the standard 1 mile/point per dollar on cards with tiered earning categories.
For instance, the Blue Cash Preferred® Card from American Express is one of my favorite credit cards thanks to its 6 percent cash back on U.S. supermarket purchases (up to $6,000 spent per year, then 1 percent). But it only earns 1 percent cash back on purchases like airline tickets or online shopping. By using my Blue Cash Preferred for groceries and my Venture card for new clothes, I can make sure I get the best possible return on my spending.
The Global Entry/TSA PreCheck credit covers the annual fee in the first year
In addition to a great rewards rate, the Capital One Venture card will cover up to $120 (as a statement credit) for your application fee toward Global Entry or TSA PreCheck every 4 years. If you maximize this offer, that more than pays for your first-year’s annual fee and a renewal every fourth year after that.
Not to mention, these programs can save frequent travelers a lot of time at the airport.
Points redemption is flexible
The miles you earn with the Capital One Venture card are also extremely flexible and offer the same 1-cent-per-point value whether you book travel through the Capital One portal or any third-party site. That’s because Capital One Venture cardholders can make a qualifying travel purchase on their card with any site or travel vendor and then redeem miles as statement credit to cover the purchase.
Money tip: If you find a cheaper booking on another site within 24 hours of making a travel purchase, Capital One will price match your booking as long as it’s an exact match for the one you booked on Capital One Travel.
Many travel credit cards only offer full point value when you book through the issuer, so this is a big perk for cardholders who like to budget hunt on multiple platforms.
Plus, as already mentioned, transferring your miles to one of Capital One’s partners could yield the best possible value for your redemption.
The card just feels luxurious
The Capital One Venture card is a metal credit card, and while this is obviously not a make-or-break feature, it does add a certain sense of luxury when pulling it out of your wallet. In fact, the Venture is one of the heaviest metal credit cards on the market — even heavier than some cards that require a $400+ annual fee.
Learn more: Capital One Venture Card benefits guide
Reasons why the Venture Card might not be worth it for you
Although the Capital One Venture Rewards Card is a solid travel card for many, it isn’t the best fit for everybody. Here are some reasons you may want to consider finding another rewards card to put at the top of your wallet.
Less-than-stellar travel transfer partners
Savvy points and miles collectors know that a good list of transfer partners is the best way to get the most value out of your credit card rewards. Capital One’s travel partners don’t quite measure up to lists from American Express or Chase — in fact, there are no U.S.-based airlines on the list. That said, there’s plenty of value to be found if you frequently find yourself on international flights or you’re willing to put in the effort to understand frequent flyer programs and airline alliances.
The value for non-travel miles redemptions is low
The Venture card is first and foremost a travel card, and that’s obvious in its rewards redemption structure. While redeeming for travel purchases is super flexible and gets you steady value, trying to spend your miles for options outside of travel is not so lucrative. Cash back, for instance, only gets you 0.5 cents per mile, and Amazon purchases get 0.8 cents.
That means you’ll need to travel at least semi-regularly to really make use of the Venture card’s rewards.
Is the Capital One Venture Card worth the annual fee?
If you can take advantage of the welcome bonus, application credit for Global Entry or TSA PreCheck and flexible redemption options for travel purchases, the Venture card is absolutely worth the annual fee.
But if you don’t spend much on travel and prefer rewards that can be leveraged for cash back, you might want to opt for a different card. The Citi Double Cash® Card, for instance, earns up to 2 percent cash back on every purchase — 1 percent as you buy and an additional 1 percent as you pay off your purchases. It doesn’t have many fancy perks, but it also doesn’t charge an annual fee and the cash-back rewards are much more straightforward.
How to offset the annual fee?
If you’re hung up on the annual fee and whether you’ll be able to offset it, consider the following example.
Let’s say you spend $24,000 annually on your card, broken down as follows:
|
Spend and category |
Miles earned |
|
$6,000 on groceries |
12,000 |
|
$3,000 on flights |
6,000 |
|
$2,400 on gas |
4,800 |
|
$4,000 on dining out |
8,000 |
|
$2,600 on hotels and rental cars through Capital One Travel |
13,000 |
|
$2,000 on other purchases |
4,000 |
|
$20,000 total spend on card |
47,800 total miles earned |
Those 47,800 miles are worth $478 in travel if you redeem through the Capital One portal or for statement credit to cover qualifying travel purchases. They could be worth even more if you transfer them to high-value transfer partners.
Here’s how, based on the 1-cent-per-mile valuation, to offset the annual fee in the first year and on an ongoing basis.
|
First Year Value |
Ongoing Basis Value |
|
|
Welcome bonus |
+$1,000 (75,000 miles after spending $4,000 in the first 3 months; one-time $250 credit toward Capital One Travel, for a limited time only) |
$0 |
|
Rewards from spending |
+$478 |
+$478 |
|
Global Entry/TSA Precheck credit |
+$30 (up to $120 every four years) |
+$30 (up to $120 every four years) |
|
Annual fee |
-$95 |
-$95 |
|
Total value |
$1,413 |
$413 |
The bottom line
At the end of the day, the Capital One Venture Card offers a straightforward way to earn a solid amount of rewards. Travel buffs who like to rack up as many rewards as possible will find their spending could go further with other travel rewards card issuers who offer tiered rewards structures and more robust transfer partner programs.
Even so, the Capital One Venture Rewards Card is no slouch. If you’re looking for a simple way to earn miles and enjoy a few cardholder perks, the Capital One Venture Card does keep things simple — providing an easy way to earn lots of valuable travel miles on everyday purchases.
Frequently asked questions (FAQs) about the Capital One Venture card
