How Does Capital One Venture Rewards Work?

Question

Cash back is the most versatile type of credit card rewards, as it can be redeemed for anything, and there’s never any doubt about how much it’s worth. Points have a value set by the credit card company and tend to be worth the most when redeemed for travel. Credit card companies won’t always clearly disclose points values, and those values can change over time. It’s possible that points could be worth 1 cent apiece one day and 0.8 cents each the next. … read full answer

You can spend points for many different things. Usually, you can trade them for travel, gift cards, unique experiences, charitable donations or even cash. There are no restrictions on what you can use cash for. You can typically redeem cash back for a statement credit, paper check, or direct deposit to a bank account.

One thing credit card shoppers should watch out for are cards advertised as offering cash back that really provide points. For example, the Chase Freedom card offers “5% cash back” in certain bonus categories. But what it actually gives is 5 Chase Ultimate Rewards points per $1, which cardholders can then trade for cash back at a rate of 1 cent each.

Cash Back vs Points:

Best cards: Citi Double Cash for cash back. Chase Sapphire Preferred for points.

Best initial bonus: Bank of America Cash Rewards for cash back - $200 for spending $500 in the first 90 days. Marriott Premier Plus Credit Card for points - 100,000 points for spending $3,000 in the first 3 months.

Earning rate: Usually at least 1% cash back or 1 point per $1 spent.

Devaluation: Points can be devalued by the issuer, while cash back can’t.

Redemption options: Statement credit, check or deposit for cash. Travel, merchandise, gift cards, cash and more for points.

When it’s the best choice: Points for frequent travelers. Cash back for everyone else.

Let’s take a look at two high-profile cards in a battle of cash back vs. points.

Citi Double Cash tops the cash back offerings with 2% cash back on all purchases and an introductory APR of 0% for 18 months on balance transfers. It also chases a $0 annual fee and requires good credit to get.

But if you have excellent credit and you’re a frequent traveler, Chase Sapphire Preferred is a more attractive option. It gives 2 points per $1 spent on travel purchases and 1 on everything else. It has an initial bonus of 50,000 points for spending $4,000 in the first 3 months. Preferred’s points are worth 1 cent each toward cash back or gift cards or 1.25 cents each toward travel. There’s a $95 annual fee, which is waived the first year. The card requires excellent credit.

For both cash back and points cards, you can expect to lose your rewards if your account closes for any reason. Most cards don’t let your rewards expire over time. But Citi Double Cash’s cash back expires if you don’t use your card for 12 months. And on points cards alone, your points can be devalued if the issuer decides to charge more points for its rewards. So frequent redemption is essential.

So the bottom line is that frequent travelers should check out points cards. Otherwise, cash is king.

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Answer 1 · 2017-10-25 14:35:59

Thom Fotenberg, Avid backpacker

@thom.f10/25/17

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The Capital One Venture Card’s rewards program is one of the simplest and most flexible available to travel credit card applicants. You’ve probably seen Jennifer Garner explain how it works on the TV commercials. But let’s take a closer look, anyway, starting with the basics.

Capital One Venture Rewards works by giving you two miles for every dollar that you charge to your Venture Card. You can then redeem those miles for gift cards, cash back or travel expenses – with no blackout dates or restrictions. Although it’s nice to have options, there’s a catch hiding here. Venture’s double miles are worth half as much when redeemed for gift cards or cash.

Each Venture mile is worth a penny when redeemed for travel. That gives you what amounts to 2% cash back on all the purchases you made to earn them. But they’re worth half a cent each, otherwise, leaving you with just 1% back.

That makes sense, considering how travel-oriented the Venture Card is. But it’s certainly something to be aware of going in. On that note, there are a few other details that you should probably know about before submitting an application. They’re listed below.

Here’s how Capital One Venture Rewards works:

Initial bonus. When you spend $3,000 within the first 3 months of account opening, you’ll earn 50,000 bonus Venture miles. That’s the equivalent of $500 in travel expenses.
Double miles on everything. The Capital One Venture Rewards Card rewards you with 2 miles per dollar on every purchase. That equals 2% “cash” back when you redeem for travel.
Lots of flexibility. Many credit cards have blackout dates, seating restrictions and other limitations that block you from booking travel with points or miles. Capital One Venture doesn’t. You can pay for any travel-related purchase charged to your Venture Card with miles. You can also book travel through Capital One‘s Rewards Center, if you’re interested.
Travel redemption is the way to go. Your miles are worth 1 cent apiece when used to pay for travel but only half a cent each when cashed in for a gift card or cash back.
Annual fee. Venture costs $0 for 1st yr, $95 after. If you use it regularly, that shouldn’t be an issue.
Prompt payment requirement. You absolutely must pay on time with this card. If you don’t, you lose all the rewards that you earned the month you were late. Plus, there’s a high APR to contend with.

In conclusion, Capital One Venture Rewards offers plenty of spoils. But it requires responsibility on your part, too.

Answer 2 · 2017-11-10 13:29:17

Debbie Fischer, Working Mom

@globetrotter4li11/10/17

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Well, you pay for stuff with it, you rack up miles. They've got a great sign-up bonus as well, if you spend $3000 in the first 3 months. This one is pretty much travel oriented, so if you're into that, the rewards are pretty good.

How Does Capital One Venture Rewards Work?

Thom Fotenberg, Avid backpacker

Debbie Fischer, Working Mom

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