Is the annual fee worth it?

Select’s editorial team works independently to review financial products and write articles that our readers will find useful. We may receive a commission when you click on product links from our affiliate partners.

The Capital One Venture X Rewards credit card launched earlier this month as the first premium credit card offered by the bank. The card comes with features geared towards travelers, such as airport lounge access, travel credits, and a big welcome bonus offering 100,000 Capital One miles after cardholders spend $ 10,000 at the airport. during the first six months.

However, the Venture X comes with an annual fee of $ 395. While this is on the lower end of a premium credit card, many wonder if it’s worth the hefty price tag.

Below, Select details the rewards, benefits, and fees of Capital One Venture X to help you decide if this is the right card for you.

Is Capital One Venture X Worth It?

The Capital One Venture X packs a punch for consumers who want a credit card that focuses solely on the benefits of travel. Other premium cards, notably the Platinum Card® from American Express and the Chase Sapphire Reserve® Card, have enriched their benefits in recent years, making each more a “lifestyle” card than a pure travel card. Conditions apply.

With the Venture X, the valuable rewards and perks you’ll have access to can quickly make the annual fee worth paying – that is, for as long as you use it. In the first year alone, the card offers benefits worth up to $ 1,600, not including those with variable values ​​like cell phone insurance and no overseas transaction fees.

Also, if you have multiple credit cards, you might get frustrated as there are several popular travel cards that have similar benefits to the Venture X. If so, it may be best to analyze which card can offer you. most valuable. If Capital One Venture X can offer you more for a better annual rate, canceling your other cards is an option to reduce the weight.

Here is a list of the benefits of the Capital One Venture X card:

Benefits of Capital One Venture X

Benefit from Potential value Benefit details
Welcome Offer: Earn 100,000 bonus miles after spending $ 10,000 on purchases within the first six months of opening the account. $ 1,000 (Miles are valued at 1 cent each) As you spend with the card you will earn: 2X unlimited miles per dollar spent on all qualifying purchases and, when booking through Capital One Travel, 5X miles per dollar spent on flights and 10X miles per dollar spent on hotels and rental cars
$ 300 travel credit $ 300 Receive up to $ 300 in statement credits for bookings through Capital One Travel
Limited time offer: $ 200 vacation rental credit $ 200 Receive up to $ 200 in statement credits for vacation rentals charged to your account
10,000 bonus anniversary miles $ 100 (Miles are valued at 1 cent each) Each year you will get 10,000 bonus miles, starting on the first anniversary of your account.
$ 100 TSA PreCheck / Global Entry credit $ 100 You will receive up to $ 100 every 4 years after you apply for Global Entry. Since TSA PreCheck is included with Global Entry, it is beneficial to request Global Entry to use the full $ 100 credit every 4 years.
Access to the airport lounge Variable You will have access to the Priority Pass and Capital One lounges
Free Hertz President’s Circle Status Variable Benefits include: skip the counter and electronic return, largest selection of vehicles, guaranteed upgrades, free extra driver and more
Cell phone insurance Variable Up to $ 800 in coverage if your phone is stolen or damaged

With this long list of benefits, the annual fee of $ 395 can be recouped very quickly, especially in the first year. While you won’t earn a welcome bonus in year two, the 10,000 bonus anniversary miles plus the $ 300 travel credit easily outweighs the annual fee. And perks like Hertz Elite status, access to airport lounges, and ongoing spending rewards are there.

What to know if you are considering Capital One Venture X

If you are considering the Capital One Venture X card, it is best to apply if you have any significant expenses ahead, especially if it is travel related.

First, you’ll be able to use the $ 300 annual travel credit and $ 200 limited-time vacation rental right off the bat, effectively recouping the annual fee, plus some. This makes the card ideal for someone who is in the process of travel planning.

Also, make sure that you will be able to meet the minimum spending threshold before you apply. The requirement is a bit high at $ 10,000 in six months, so having big upcoming expenses such as travel, vacation shopping, or a new iPhone can take the stress out of earning the bonus.

But more importantly, add the annual fee of almost $ 400 to your budget. While saving money on travel with reward miles and credit cards can be exciting, it’s not worth putting yourself in a financial bind. So, before you apply, be sure to consider the annual fee as it will be applied on the first billing statement.

Alternatives to Capital One Venture X

Capital One Venture Rewards Credit Card

Capital One Venture Rewards credit card information was independently collected by Select and was not reviewed or provided by the card issuer prior to posting.

  • Awards

    5X miles on hotel and rental cars booked through Capital One Travel℠, 2X miles per dollar on all other purchases

  • Welcome bonus

    Earn 60,000 bonus miles once you have spent $ 3,000 on purchases within the first 3 months of opening the account.

  • Annual subscription

  • Introduction APR

    N / A for purchases and balance transfers

  • Regular APR

    17.24% to 24.49% variable on purchases and balance transfers

  • Balance transfer fees

    3% for APR promotional offers; none for balances transferred to the regular APR

  • Foreign transaction fees

  • Credit needed

Advantages

  • 5X miles on hotel and rental cars booked through Capital One Travel℠
  • Global Entry or TSA PreCheck application fee credit up to $ 100 every 4 years

The inconvenients

  • No introductory APR
  • There is an annual fee of $ 95
  • Estimated rewards earned after 1 year: $ 1,466
  • Estimated rewards after 5 years: $ 2,931

Reward totals include miles earned from the welcome bonus

If you want more benefits, consider the Chase Sapphire Reserve® Card. It offers a long list of features, including: broad spending categories to earn rewards, access to airport lounges, discounts and credits with partners like Lyft, Peloton and DoorDash, comprehensive travel insurance, a purchase protection, return protection and 50% more value when you exchange. your Chase Ultimate Rewards® points for travel through the Chase Travel Portal. The card also comes with an excellent welcome offer: 50,000 bonus points after spending $ 4,000 on purchases in the first three months after opening the account. However, the card has a steep annual fee of $ 550 and an additional annual fee of $ 75 for each authorized user.

Chase Sapphire Reserve®

  • Awards

    Earn 5X the total points on air travel and 10X the total points on hotels and car rentals when you purchase travel through Chase Ultimate Rewards® immediately after the first $ 300 has been spent on travel purchases each. year. Earn 3X points on other trips and restaurants and 1 point for every $ 1 spent on all other purchases plus, 10X points on Lyft trips through March 2022

  • Welcome bonus

    Earn 50,000 bonus points after spending $ 4,000 on purchases in the first 3 months after opening the account

  • Annual subscription

  • Introduction APR

  • Regular APR

    Variable from 16.99% to 23.99%

  • Balance transfer fees

  • Foreign transaction fees

  • Credit needed

Advantages

  • Annual travel credit of $ 300 for travel purchases
  • Global Entry or TSA PreCheck application fee credit up to $ 100 every four years
  • Access to Priority Pass ™ Select lounges in over 1,000 VIP lounges in over 500 cities around the world
  • Points are worth 50% more when redeemed for travel through Chase Ultimate Rewards®
  • Special benefits at The Luxury Hotel & Resort Collection
  • DashPass subscription free for at least one year when you activate it before December 31, 2021
  • $ 60 in DoorDash credit in 2021
  • Free Year Lyft Pink Membership

The inconvenients

  • High annual fee of $ 550, but can be offset by taking advantage of all the card’s benefits
  • No introductory APR
  • Estimated rewards earned after 1 year: $ 1,469
  • Estimated rewards after 5 years: $ 3,346

Reward totals include points earned from the welcome bonus

At the end of the line

The Capital One Venture X is a great travel credit card for those looking for an easy way to earn and spend rewards with their purchases. The Venture X is focused on consumers who only want travel benefits, and it’s relatively easy to recoup the annual fee if you travel at least once or twice a year. Other premium credit cards offer a wider range of benefits, but it can be difficult to use them without making purchases that you wouldn’t normally make.

If you are able to afford the annual fee of $ 395, the Venture X card can be a great companion not only for shopping, but also for improving the quality of the trips you experience.

Capital One Venture X Rewards Credit Card

  • Awards

    2X unlimited miles on all qualifying purchases and, when booking through Capital One Travel, 5X miles on flights and 10X miles on hotels and rental cars

  • Welcome bonus

    100,000 bonus miles after spending $ 10,000 on purchases in the first six months after opening the account

  • Annual subscription

  • Introduction APR

  • Regular APR

    Variable APR from 16.99 to 23.99%

  • Balance transfer fees

    Either $ 10 or 4% of the amount of each transaction, whichever is greater.

  • Foreign transaction fees

  • Credit needed

To find out the prices and fees of the Amex Platinum card, click on here.

Editorial note: Any opinions, analysis, criticism or recommendations expressed in this article are the sole responsibility of the editorial staff of Select and have not been reviewed, endorsed or otherwise approved by any third party.


Source link