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More than 10% back? Yes, you read that right. Unfortunately, it doesn’t apply to all of your spending, but even if it’s just a couple of categories, the ability to redeem points for 10% back is definitely something we want to pay attention to. In order to get this kind of return on your rewards, be prepared to put in some work. You’ll have to learn about Capital One’s transfer partners and find award availability that works for your schedule—probably in a premium cabin if you want to see 10%+.
For decades, banks have used rewards to entice customers to apply for and spend on their various credit card products. Sometimes those rewards come in the form of cash back and sometimes they come in the form of points or miles. Rewards of 1%, 2% and 3% can be commonly found and many of today’s cards even offer 5%, or 5x earnings, in certain categories.
We’ve always been able to take the points or miles earned with these cards and maximize their value for higher rewards, but the brand new Capital One Venture X Rewards Credit Card offers a unique opportunity. You will be able to start by earning 10 miles per dollar in eligible categories and then potentially turn around and maximize those miles to get more than a cent back per point.
The Venture X Offer
The Capital One Venture X Rewards Credit Card is a category-leading new entrant into the premium travel card market. It’s fairly easy to get enough value out of the card to make up for the annual fee each year and the other benefits of the card make it a definite keeper once you have it.
Welcome Bonus: 100,000 bonus miles after spending $10,000 on purchases within the first six months of account opening. Plus, for a limited time, receive up to $200 back in statement credits for vacation rentals charged to your account within your first year.
Earnings on Spend: 2 miles per dollar on all eligible purchases and 5 miles per dollar on flights and 10 miles per dollar on hotels and rental cars when booking via Capital One Travel.
- Unlimited access to Capital One Lounges for primary cardholders and their authorized users along with two guests per visit
- Cardholders, authorized users and their guests also have unlimited access to over 1,300 Priority Pass lounges internationally
Automatic Elite Status
- Complimentary Hertz President’s Circle status for primary cardholders, authorized users and account managers
- Status benefits with Avis, National and Silvercar car rental companies
How to Increase the Value of Your Miles
We mentioned in the introduction that you can use the miles you’ve earned to increase the value of your rewards even further. Let’s take a look at how you can do this to maximize your returns with the Capital One Venture X.
In this case, we are going to look specifically at the 10 miles per dollar spent that you will earn when booking hotels or rental cars through Capital One Travel. You can maximize any of the miles that you earn with your Venture X card, but in these specific categories, you can make your rewards worth even more than 10% of your spend.
Capital One miles are worth one cent per mile if you redeem them for statement credits to cancel out travel purchases. That would be an easy way to turn your 10 miles per dollar earnings into 10% back. But we want more value, right?
Luckily, Capital One also allows their premium cardholders to transfer miles to more than a dozen different airline and hotel loyalty programs. This is where the greatest value can be found. If you transfer to an airline partner and use your miles to book an upper class flight, you will get the most value possible out of your Capital One miles.
An Example of Outsized Value
As just one of many possible examples, let’s take a look at a round trip in business class on Turkish Airlines for next fall, from Washington, D.C., to Bodrum, Turkey. As a reminder, the Turkish Airlines Miles & Smiles program is a 1:1 transfer partner of Capital One.
As you can see, the cost of the round trip ticket in business class is $3,850.67. Those exact same flights can be booked for only 90,000 miles and $400.17 in taxes and fees. In this case, that makes each of those miles worth 3.8 cents. By transferring your Capital One miles to the Turkish Airlines Miles & More program and booking an award flight, you have more than tripled the value of your miles.
If you start with your 10 miles per dollar on hotels and rental cars booked through Capital One Travel, then redeem those miles in a way similar to the example above, you are looking at over a 30% effective return on your spending.
These redemptions may not always be available, but it’s an example of a great way to stretch the value of your points.The appeal of earning outsized rewards may sound too good to be true, and it might be. While you may be able to find outsized values when transferring points, the reverse can also be true. You can easily transfer points in a way that nets you less than 1 cent per point in value. This is why you should always verify that the flights you want to book are available before you transfer your points.
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Venture X, the new premium travel rewards card from Capital One, has a strong welcome bonus and a solid set of benefits that make it an easy choice for adding to your wallet. Once you start to see how much value you can get out of the miles you earn though, it gets even better.
Even though you likely won’t earn or receive the benefits of your elite status with hotel or rental car programs when booking through Capital One Travel, the incredible potential value of the miles you earn may make it worth it anyway. For non-chain hotels, smaller rental car companies, or for those who don’t concentrate on maintaining elite statuses, the earning and redemption values of this card are hard to beat.
Capital One has entered the premium travel card market aggressively, with a card that will allow cardholders to earn over 10% back in rewards when booking hotels and rental cars through Capital One Travel. No other card on the market comes close to these values with such varied partners for redemption.
If you will be able to move some of your travel bookings over to Capital One Travel and take advantage of this amazing opportunity, then the Venture X is worth considering.