Capital One Venture miles are worth 1 cent each when you redeem them for travel expenses. For example, you can either use miles to pay for travel-related purchases that appear on your bill or book travel with miles through Capital One. But each Venture miles is worth just half a cent or less each when redeemed for gift cards or cash back.
It makes sense that Capital One Venture Rewards miles are worth the most when redeemed for travel. It’s a travel rewards credit card, after all. And there are clues everywhere, from “Venture” being part of its name to the fact that it offers rewards in the form of miles. So it’s pretty straightforward: full value if you use the card as intended, half as much if you want the flexibility of cash. But continue reading if you’d like more details on all of the redemption options.
Here’s how much Capital One Venture miles are worth:
Travel purchase “eraser”: 1 cent. You can use miles to pay for travel expenses once they appear on your bill, instead of using money from your bank account.
Travel booking tool: 1 cent. You can book airfare, hotels and rental cars through Capital One and pay with miles.
Cash back: Half a cent. You can opt for either a statement credit or a check in the mail.
Gift cards: Half a cent. Gift cards from 80+ retailers are available. They range from Amazon.com and Applebee’s to Walmart and Wa wa.
Donations: Half a cent or less (if available). In the past, Capital One has let you redeem miles for a charitable donation. But that option isn’t available right now. And I don’t know when (if) it will return.
Although Capital One provides a few different options for redeeming your Venture Rewards miles, they’re worth most when used for travel. So if you don’t plan to travel enough to make good use of the miles you earn, look for a card with cash back rewards instead.
Cash back vs. miles is a frequent debate among rewards credit card shoppers, but it’s like comparing apples and oranges. Both are fruit, or rewards that you earn on every purchase, in this case. And both have their virtues, though a lot depends on your personal tastes. For example, you always know how much cash back is worth, while miles tend to be more mysterious. Miles are also associated with travel, which is fun. But much like you can eat both an apple and an orange, there’s room in your wallet for a … read full answercash back credit card and a credit card with miles. The best approach is to use a cash back card with a high baseline earning rate for everyday purchases and a credit card with miles for travel expenses.
It’s still good to know how these two major rewards currencies compare, no matter how many credit cards you decide to get. So let’s take a look at some of their biggest similarities and differences.
Typical Redemption Method: Statement credit vs. Eligible travel expenses
Averages are from WalletHub’s 2020 Credit Card Landscape Report. And if you’re wondering, rewards devaluation is when a credit card company increases the number of points or miles needed for a certain amount of redemption value, which decreases the value any unredeemed points or miles you may have. That’s not a concern with cash back because a credit card company can’t change the value of a dollar.
Cash back is just a lot more straightforward than miles because it’s already in dollar terms. So you’ll always know exactly how much you’re earning on a particular purchase as well as how much your unredeemed rewards are worth. With credit card miles, you have to compare the number needed for a certain redemption item – a flight, for example – to how much that item would cost if purchased normally.
But cash back and miles credit cards have a lot in common, too. For example, you’ll find a similar mix of rewards programs among both types of cards. Some offer the same rewards earning rate on all purchases. Some give you more rewards in designated bonus categories, if only up to a certain amount spent. And others offer even higher bonus rates in categories that change every few months. You’ll also find initial bonuses on both types of cards but only on some offers in each group.
Travel credit cards work just like any other rewards credit card, but they prioritize travel in their rewards and other benefits. Travel credit cards usually reward cardholders more for making travel-related purchases than anything else, and their points/miles tend to be worth more when used to pay for travel. Plus, travel credit cards commonly offer features such as travel insurance, no foreign transaction fee, airport lounge access, and reimbursement for TSA PreCheck/Global Entry application fees.… read full answer
Travel rewards credit cards offer rewards in one of two currencies: miles or points. There isn’t much of a difference between the two, but miles are more frequently used in the context of airline rewards, while points are often associated with hotels. However, plenty of credit cards with points or miles don’t favor airfare or hotel reservations in particular – just travel purchases in general.
Overview of how travel credit cards work:
They often reward you more for travel. Travel purchases are usually going to be a lot more profitable rewards-wise than other types of purchases. For example, Chase Sapphire Preferred gives 2 points per dollar spent on travel and dining, and 1 point per dollar on other purchases. But this isn’t true for every card. Capital One Venture, for instance, gives 2 miles per dollar on all purchases.
Travel redemption is usually the best value. In most cases, you don’t have to spend your rewards on travel, but the credit cards companies give big incentives for you to do so. Take Chase Sapphire Preferred, for example. You get 25% more value from your points when you redeem them for travel, which turns the 80,000 points initial bonus into $1,000.
No foreign transaction fees. Very few travel cards will charge you extra for using your card abroad or with foreign merchants online. But you should check your cardholder agreement just to be sure.
There may be booking restrictions. Some travel cards, like Capital One Venture, pride themselves on rewarding you equally for any type of travel, no matter where you book it. But other cards, especially airline or hotel cards, may only give travel-specific rewards rates if you book directly through the issuer.
Your credit rating counts. Travel rewards cards are typically available only to people with good or excellent credit. You should shoot for a credit score of 700+ for cards that require good credit and 750+ for excellent credit.
You’ll often get travel insurance & more. Travel insurance is a big plus; cards like Chase Sapphire Preferred will cover you for trip cancellation, delays or accidents. Many travel credit cards still offer rental car insurance, too, though many regular credit cards have dropped that benefit. Some cards, like Chase Sapphire Reserve or Amex Gold, also give you a yearly credit toward airline or travel purchases. You may even get other perks like free airport lounge access and the ability to transfer your points or miles to hotel and airline loyalty programs.
So if you travel frequently, getting a travel credit card is a good idea. After all, if you’re going to take trips anyway, you might as well get rewarded for it. Some of your best choices are Capital One Venture for miles, Chase Sapphire Preferred for points, and Amex Platinum for luxury travel.
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