New account holders can earn 40,000 miles with the Capital One Venture Rewards card after spending $3,000 within their first three months of card membership.
The bonus will post to your account within two billing cycles.
The card has no annual fee for the first year; it’s $59 in subsequent years.
Ongoing perks include 2 miles per $1 spent, no foreign transaction fees and the ability to check your TransUnion credit score for free anytime.
Since you have to spend $3,000 to earn the bonus and you’ll get 2 miles per $1 on those purchases, you’ll end up with 46,000 miles to redeem once you receive your bonus.
The great thing about Capital One’s miles is that unlike traditional airline miles, you aren’t limited to redeeming them with a single airline.
You don’t have to book months in advance to find an available frequent flier seat.
You also don’t have to worry about maximizing redemption rates.
Just charge an expense to your Capital One Venture Rewards card, then redeem your miles to be reimbursed for that expense.
Miles don’t expire, either. If you close your account, however, you forfeit any unredeemed miles.
Miles can be redeemed for travel expenses at a 1:1 rate online or by phone. You could cover the cost of a $460 plane ticket, a $460 hotel stay, a $460 car rental or some combination thereof.
Capital One calls its redemption feature “Purchase Eraser,â€ and to redeem your miles for any particular travel purchase, you have 90 days from the date the travel purchase posts to your account.
It then takes five to seven business days to receive your credit.
You can’t purchase a $520 plane ticket and use your 46,000 miles to cover most of the cost, however. Capital One requires you to have enough miles to cover the whole purchase you want to “erase.”
Cost of financing with Venture Rewards
|Intro interest rate||Standard APR||Average APR|
|No intro rate||13.9%-20.9%||15.03%|
Another redemption option, which also requires that you have enough miles to cover the whole purchase, is to book a flight, car rental or hotel room through the Capital One Rewards Center, either online or by phone, and use your miles directly to pay for travel.
If you don’t travel much, you can redeem your miles for gift cards or cash. Capital One does not reveal its redemption rates for these options publicly, however; it only says that they “vary and are subject to change without notice.” You must be an account holder to log in and see these redemption offers.
To earn enough miles to break even with the annual fee after the first year, you’d need to charge $2,950 annually. This break-even point is significantly lower than what we see with other annual fee cards. If you expect to charge more than this amount each year, the fee may be worth paying.
If you’d prefer a card that doesn’t charge an annual fee in subsequent years, apply for the VentureOne Rewards credit card instead.
It offers a reduced ongoing rewards rate of 1.25 miles per $1 spent and a lower introductory bonus of 20,000 miles when you spent $1,000 in your first three months of card membership.
You’ll still get no foreign transaction fees and a free credit score.
Unlike the annual fee version, this card has a 0% introductory APR on purchases until August 2015 and a 11.9% to 19.9% variable APR after that, but there’s still no promotional rate on balance transfers.
Find the offer here: http://www.capitalone.com/credit-cards/venture-rewards/
Then compare it with the travel rewards credit cards in our database.