Capital One has been in the travel reward card game for a long time, but it’s only recently that it’s really started to target higher-level travelers. In November 2021, the company launched the Capital One Venture X Rewards credit card. While it offers many of the great features of famous cards like the Chase Sapphire Reserve Card and the American Express Platinum Card®, it only costs $395/year compared to $550 and $695/year. respectively.
However, it’s a hefty price tag. Fortunately, the cost of the annual fee is easily offset by the benefits of this card. We’ll show you how.
A look at Venture X from Capital One
The first thing that jumps out at the Capital One Venture X card is its $395 annual fee, making it just about the most affordable luxury travel card on the market. If you are new to the high price of luxury bonus cards, don’t worry too much about it. As we’ll discuss below, it’s very easy to get that kind of travel benefit from the card every year.
Another nice feature of this card is that it does not charge foreign transaction fees. A nice bonus is that you can take this card with you on an overseas adventure without paying extra to use it. While it charges various balance transfer fees, cash advances, and late fees, it’s really not that different from the rest of the industry. Similarly, its interest rate (from 16.99% to 23.99% with a variable annual interest rate) is about what we expected.
Signup bonuses and rewards
Typically, when a new rewards card is launched, it offers a juicy signup bonus, and the Capital One Venture X card does not disappoint. You can earn 75,000 miles by spending $4,000 on purchases within the first three months. That’s a pretty big signup bonus, especially considering the Chase Sapphire Reserve and Chase Sapphire Preferred Card offer 15,000-25,000 points less for the same $4,000 spend.
Receiving awards
The regular reward rate with this card isn’t bad either. You’ll earn 2 miles for every dollar spent on every purchase, which means you don’t have to keep track of categories or choose which card to use if you have more than one. The only thing to remember is that if you book your trip, do it through the Capital One Travel portal because you will earn a much higher rate: 10 miles per dollar spent on hotels and car rentals and 5 miles per dollar spent on airfare. .
The Capital One Travel Portal has recently been updated with many convenient features such as price protection and flexible trip cancellations, making it a useful first stop when you’re shopping for travel.
Finally, one of the things we love about this card is that you will earn an annual bonus of 10,000 miles into your account every year on your anniversary. There are no strings attached to this gift; you’ll earn it whether you spend $10,000 or $0 (although be careful because if you don’t shop for too long, it’s not uncommon for credit card companies to close your card for you).
Use of awards
It is also very easy to redeem your rewards with this card. The best way to exchange them for travel, and you can do this in two ways. You can use your miles to book travel on Capital One Travel or you can pay for any trip with your card and then redeem the miles at 1% as a credit statement for that purchase.
Keep in mind that Capital One, like other card issuers, relies on the Merchant Category Code (MCC) to figure out what counts as a travel purchase and what doesn’t. If you’re worried that a purchase might not count, it’s safer to go through the Capital One Travel portal as it’s guaranteed.
You can also redeem your rewards for gift cards, checks, or credit for an account, but you probably won’t be able to maximize your value that way.
Travel allowances and credit statements
The Capital One Venture X card also offers two money saving credits to help you travel further:
- $300 Annual Travel Credit: Each year you will receive a $300 credit towards travel booked through the Capital One Travel Portal. Just shop and Capital One will automatically credit you for those purchases on your statement.
- $100 Global Entry/TSA PreCheck Credit: If you charge a Global Entry ($100) or TSA PreCheck ($85) application fee on your card, Capital One will automatically grant you credit for this purchase. You are eligible again every four years so you can continue to stay in the program.
In addition to loans, the Capital One Venture card also has several other benefits:
- Free Priority Pass: This shared luxury pass privilege gives you access to over 1,300 airport lounges worldwide.
- Capital One Lounges: As a Capital One Venture X cardholder, you and two guests will receive complimentary access to the Capital One Lounges. Every year. There is currently only one at Dallas/Fort Worth Airport, with two more coming in 2022 at Denver International Airport and Dulles International Airport.
- Free Hertz President’s Circle Membership: This elite status at a car rental agency gives you convenient perks such as a wider selection of cars to choose from, a free additional driver and a guaranteed upgrade.
- Mobile phone protection: If you pay your bill with a Capital One Venture X card, you automatically get up to $800 of coverage in the event your cell phone is stolen or damaged. This can be very handy for travelers with a mobile connection.
This list of other benefits is not as long as Chase Sapphire Reserve or Amex Platinum. But then again, you pay a lot less for this card while still retaining the most valuable perks.
How to maximize the benefits of Venture X
With the Capital One Venture X card, it is much easier to recover your annual fees every year than with other luxury cards. Only a $300 Annual Credit and a 75,000 Miles Bonus (earned after you spend $4,000 in the first three months) will completely negate the cost of the $395 Annual Fee. Since these statements and miles can be used for any travel purchases, not just those booked through the card issuer’s own travel portal as with other cards, this is a particularly powerful travel card.
However, you will still want to use the Capital One Travel Portal if you are paying with your card. This is because you can earn between 5 and 10 miles for every dollar spent through the portal on flights, hotels and car rentals, respectively.
bottom line
If you wanted to try a more expensive travel reward card but are put off by the high annual fee, try the Capital One Venture X card instead. It offers many of the same benefits but at a more reasonable price.
What’s more, it’s much easier to offset the cost of the card every year. 10,000 points annual bonus (worth $100 per trip) and $300 annual travel credit for Capital One Travel bookings together add up to $400 in free travel each year for a card that costs you just $395 US dollars. And that’s not even taking into account your usual earnings and other privileges.
Editorial disclaimer
The editorial content on this page is based solely on the objective judgment of our contributors and is not based on advertising. It was not provided or ordered by credit card issuers. However, we may receive compensation when you click on links to our partners’ products.
