If you’re looking for a travel rewards credit card, the Capital One® Venture® Rewards Credit Card is one of the best. But there’s one aspect of the card that might turn off frugal travelers: an annual fee. For that, you may be inclined to consider the card’s lite version, the Capital One® VentureOne® Rewards Credit Card. But passing on a card simply because it has an annual fee may cost you.
| At a glance | ||
|---|---|---|
| Capital One® VentureOne® Rewards Credit Card | Capital One® Venture® Rewards Credit Card | |
| Annual fee | $0 | $95 |
| Sign-up bonus | Earn a bonus of 20,000 miles once you spend $1,000 on purchases within 3 months from account opening, equal to $200 in travel | Earn 100,000 bonus miles when you spend $20,000 on purchases in the first 12 months from account opening, or earn 50,000 miles if you spend $3,000 on purchases in the first 3 months. |
| APR | 0% on Purchases for 12 months, and then the ongoing APR of 14.49% - 24.49% Variable APR | The ongoing APR is 17.24% - 24.49% Variable APR |
| Rewards rate | Unlimited 1.25X miles per dollar on all purchases | Unlimited 2X miles per dollar on all purchases |
| Who would want each card? | ||
| Capital One® VentureOne® Rewards Credit Card | Capital One® Venture® Rewards Credit Card | |
| Good for: |
|
|
| Bad for: |
|
|
Capital One® VentureOne® Rewards Credit Card vs. Capital One® Venture® Rewards Credit Card: The basics
The Capital One® VentureOne® Rewards Credit Card and the Capital One® Venture® Rewards Credit Card share the same basic DNA. With each card, your daily swiping generates miles, which you can use to book travel or redeem for travel statement credits or gift cards at a rate of $0.01 per mile. There are other redemption options, including cash back, but they come at a lower rate and aren’t recommended. Neither card charges a foreign transaction fee.
Beyond the basics, a few features can help you decide which card is for you.
The Capital One® VentureOne® Rewards Credit Card and the annual fee dilemma
For thrifty travelers, paying an annual fee can be painful. So on the surface, the Capital One® VentureOne® Rewards Credit Card might seem like the better choice with its $0 annual fee. But if you dive deeper into the math, you’ll see that paying the Capital One® Venture® Rewards Credit Card’s annual fee might be worth it.
The Capital One® Venture® Rewards Credit Card’s annual fee is $95. Also, the card’s high ongoing rewards rate makes it easier to overcome the annual fee. If you spend more than $12,666.70 annually — or $1,055.50 monthly — you’ll earn more rewards with the Capital One® Venture® Rewards Credit Card, and the annual fee will be paid for. If you expect to spend less, then the Capital One® VentureOne® Rewards Credit Card might be a better option.
Get a bigger sign-up bonus with the Capital One® Venture® Rewards Credit Card
If you’re still wondering if paying the Capital One® Venture® Rewards Credit Card’s annual fee is worth it, consider its sign-up bonus: Earn 100,000 bonus miles when you spend $20,000 on purchases in the first 12 months from account opening, or earn 50,000 miles if you spend $3,000 on purchases in the first 3 months..
For a $0 annual fee card, the Capital One® VentureOne® Rewards Credit Card’s sign-up bonus isn’t bad: Earn a bonus of 20,000 miles once you spend $1,000 on purchases within 3 months from account opening, equal to $200 in travel. But compared with its sister card, you’re not getting nearly as much value. Again, those who spend less may still find value in the Capital One® VentureOne® Rewards Credit Card because its spending requirement is lower. But if you can afford the Capital One® Venture® Rewards Credit Card’s requirement within the frame of your normal spending, the Capital One® Venture® Rewards Credit Card makes more sense.
Take your time to pay off a large purchase with the Capital One® VentureOne® Rewards Credit Card
One major advantage the Capital One® VentureOne® Rewards Credit Card has over the Capital One® Venture® Rewards Credit Card is its introductory APR period: 0% on Purchases for 12 months, and then the ongoing APR of 14.49% - 24.49% Variable APR. While its intro period length may not measure up to the top 0% cards on the market, it’s an impressive addition to a card that already has a decent sign-up bonus and better-than-average rewards.
If you want travel rewards and you have a big purchase coming up, add the amount you’ll save in interest payments with the Capital One® VentureOne® Rewards Credit Card to how much you can earn in rewards to help you make your decision.
Which card is better?
Both the Capital One® VentureOne® Rewards Credit Card and the Capital One® Venture® Rewards Credit Card have strengths that are difficult to discount. If you’re not sure which one to choose, take a look at your current spending. If it’s more than $666.67 a month, the Capital One® Venture® Rewards Credit Card is likely the better option. But if it’s less, or if you’re buying a big-ticket item soon, you’ll find more value in the Capital One® VentureOne® Rewards Credit Card.
Image via iStock.
