Capital One Venture Card (Visa Signature)
Updated April 25, 2021. For the temporary benefits during the COVID-19 pandemic, please see our featured review.
The Facts
The Math
When you are not using the frequent traveler miles/points transfer feature, this card is essentially a fixed value 2% rewards card with a $95 annual fee. In comparison, there are a few non-annual-fee cards that offer 2% cashback (such as Fidelity Visa and Citi Double Cash). In addition, Alliant Visa Signature offers 2.5% cashback with a lower annual fee ($95, also waived for the first year). In this way, Capital One Venture is not that attractive other than its signup bonus.
However, the frequent traveler miles/points transfer feature introduced in 2018 does separate Venture from its cashback competitors, because you might achieve higher rewards value and/or get yourself into premium cabin which you won't otherwise spend your cash on. The 2021 enhancement has increased the flexibility as well the valuation of C1 Miles further. Our current valuation of C1 Miles is 1.3 cent per Mile based on the transfer feature, so that Venture returns an amazing 2.6% on paper. To beat 2% cashback offered by the competitors and the $95 annual fee, you will need to spend $15,833 per year on Venture. Of course, the transfer feature represents a very different redemption option with potentially higher rewards but also increased complexity. Compared to other high returning cards for general spending with frequent traveler miles/points transfer feature - Citi Double Cash (no annual fee, 2x points = 3% rewards, requiring a premium ThankYou card to activate the transfer feature), Amex EveryDay Preferred ($95 annual fee, 1.5x points = 2.25% rewards, requiring at least 30 transactions per month to achieve 1.5x), and Chase Freedom Unlimited (no annual fee, 1.5x points = 2.25% rewards, requiring a premium Ultimate Rewards card to activate the transfer feature), Capital One Venture is very well positioned.
Venture vs. VentureOne: Since Venture has a $95 annual fee, you need to spend $12,667 per year to beat VentureOne ($12,667 x 0.75 mile/$ x 1 cent/mile = $95) if you are using cashback option. If you make use of the transfer feature, Venture is an even easier winner.
The Conclusion
With the demise of Charles Schwab Visa in 2011, Capital One gained great market share with its Venture card. However, when the market was being filled with several cards that offer 2% cashback with no annual fees, Venture slowly lost its appeal. In 2018, Capital One surprised us in bringing the frequent traveler miles/points transfer feature, which suddenly made this card interesting again. In 2021, Capital One further increased the flexibility and valuation of C1 Miles and made the Venture Card a powerhouse for general spending, and that is why it is currently ranked as one of Best Credit Cards for Rewards and also one of the Top 10 Best Credit Cards by Dr. Credit Card.
© 2011-2021 DrCreditCard.net All rights reserved.
The Facts
- Annual Fee: $95
- Signup Bonus: up to 100,000 Miles (50,000 Miles after spending $3,000 within 3 months of new account opening, and additional 50,000 Miles after spending a total of $20,000 within 12 months). Please keep in mind that unlike other credit card issuers, Capital One pulls all three of credit reporting agencies when you open a new account. Historical best bonus of this card: (1) up to 100,000 Miles with 1st year annual fee waiver in 2011 & 2012; (2) 100,000 Miles with $20K spending requirement in 2020 & 2021; (3) 75,000 Miles with 1st year annual fee waiver in 2018.
- Application Landing Page
- Rewards: 2x everywhere
- Best Use of Capital One (C1) Miles: You may redeem your C1 Miles for travel, gift cards, charity, etc. at exactly 1 cent per mile, or for cash at 0.5 cent value. The fixed value travel rewards can be achieved by either booking future travel through Capital One's travel portal or receiving statement credit for any travel expense within the last 3 months. In addition to fixed value redemption options, you may also transfer your C1 Miles to frequent traveler miles/points at 1000:1000 or 1000:750 ratio. In this way, the value of Miles depends on how you redeem your frequent traveler miles/points of the specific program you choose to transfer to. Note that you can only transfer your Capital One Miles to a frequent traveler program under your name. You may share your Miles with another Capital One cardmember without being charged a fee. Please check out our featured review Marriott vs. MR vs. UR vs. TY vs. C1 vs. CR for the programs that allow points transfer to frequent traveler accounts.
- Other Benefits: (1) Reimbursement for Global Entry or TSA PreCheck application fees (up to $100). (2) No foreign transaction fees. (3) No over-limit fees. (4) Access to exclusive culinary, music, and sport events.
- Other Facts: (1) The Venture card has a metal design and weighs about 15 grams, three times as heavy as regular plastics. (2) Don't confuse this card with the non-fee VentureOne Visa Signature which offers 1.25 Miles on everything.
- The History: The hugely popular FIA Charles Schwab Visa which offers unlimited 2% cash back without an annual fee and foreign transaction fees was discontinued to new applications in 2010. Capital One rolled out its Venture Card attempting to fill the gap. In August 2011, FIA started replacing the existing cards with BofA cash rewards cards (1% on general spending) and we were not surprised to see many FIA card members picking up the Venture Card. The annual fee was increased from $59 to $95 in 2017. Global Entry / TSA PreCheck credit was added in 2018. In December 2018, Capital One introduced the frequent traveler miles/points transfer feature with 12 partner programs with a ratio of 1000:750 for most. The first annual fee waiver was discontinued as of May 2020. In April 2021, Capital One added 4 new transfer partners and increased the transfer ratio to 1:1 for 9 partners, which obviously increased the flexibility and value of this rewards program.
The Math
When you are not using the frequent traveler miles/points transfer feature, this card is essentially a fixed value 2% rewards card with a $95 annual fee. In comparison, there are a few non-annual-fee cards that offer 2% cashback (such as Fidelity Visa and Citi Double Cash). In addition, Alliant Visa Signature offers 2.5% cashback with a lower annual fee ($95, also waived for the first year). In this way, Capital One Venture is not that attractive other than its signup bonus.
However, the frequent traveler miles/points transfer feature introduced in 2018 does separate Venture from its cashback competitors, because you might achieve higher rewards value and/or get yourself into premium cabin which you won't otherwise spend your cash on. The 2021 enhancement has increased the flexibility as well the valuation of C1 Miles further. Our current valuation of C1 Miles is 1.3 cent per Mile based on the transfer feature, so that Venture returns an amazing 2.6% on paper. To beat 2% cashback offered by the competitors and the $95 annual fee, you will need to spend $15,833 per year on Venture. Of course, the transfer feature represents a very different redemption option with potentially higher rewards but also increased complexity. Compared to other high returning cards for general spending with frequent traveler miles/points transfer feature - Citi Double Cash (no annual fee, 2x points = 3% rewards, requiring a premium ThankYou card to activate the transfer feature), Amex EveryDay Preferred ($95 annual fee, 1.5x points = 2.25% rewards, requiring at least 30 transactions per month to achieve 1.5x), and Chase Freedom Unlimited (no annual fee, 1.5x points = 2.25% rewards, requiring a premium Ultimate Rewards card to activate the transfer feature), Capital One Venture is very well positioned.
Venture vs. VentureOne: Since Venture has a $95 annual fee, you need to spend $12,667 per year to beat VentureOne ($12,667 x 0.75 mile/$ x 1 cent/mile = $95) if you are using cashback option. If you make use of the transfer feature, Venture is an even easier winner.
The Conclusion
With the demise of Charles Schwab Visa in 2011, Capital One gained great market share with its Venture card. However, when the market was being filled with several cards that offer 2% cashback with no annual fees, Venture slowly lost its appeal. In 2018, Capital One surprised us in bringing the frequent traveler miles/points transfer feature, which suddenly made this card interesting again. In 2021, Capital One further increased the flexibility and valuation of C1 Miles and made the Venture Card a powerhouse for general spending, and that is why it is currently ranked as one of Best Credit Cards for Rewards and also one of the Top 10 Best Credit Cards by Dr. Credit Card.
© 2011-2021 DrCreditCard.net All rights reserved.
