It can be tough choosing the right rewards credit card, so today, I’ll be reviewing the Chase Sapphire Preferred® Card and Capital One Venture credit card offers.
The Chase Sapphire Preferred or Capital One Venture cards are two of the most advertised cards on TV and online, so I receive a lot of emails asking for advice on which offer to apply for. Let’s do a comparison review, shall we?
You can see both of these offers on their bank’s secure web site through the banner below:
Apply Now: Chase Sapphire Preferred® Card
Link: Capital One Venture Card
Chase Sapphire Preferred vs. Capital One Venture: Best Sign-Up Bonus
The Chase Sapphire Preferred® Card has a sign-up bonus of 50,000 bonus points when you spend $4,000 on purchases in the first 3 months. Plus, you will receive a 5,000 points bonus if you add an authorized user and they make a purchase in the same 3 month period.
The Chase Sapphire Preferred earns Ultimate Rewards points, which can be used for a statement credit, redeemed for travel through the Ultimate Rewards portal, or transferred out to over 10 travel partners. 50,000 Ultimate Rewards points are worth $500 in hard cash, $625 in travel booked through the Ultimate Rewards program, or even more when you transfer them out to travel partners (more on that later).
The Capital One Venture card has a sign-up bonus of 40,000 points after you spend $3,000 in 3 months. Capital One Venture points can be redeemed for travel at a $.01 per point ratio, or used for cash back. Unfortunately, the cash back ratio is half the value of the redeeming for travel. For example, 40k Venture points are worth $400 in travel, or $200 in cash back. Ouch.
Even though the minimum spending requirement is a little bit higher with the Chase Sapphire Preferred, you earn 10,000 ($100) more points after meeting the minimum spending requirement. Plus, you have the option to get an additional 5,000 ($50) points by adding an authorized user (which won’t affect authorized users from getting their own card, btw), and you have more options when it comes time to use your Ultimate Rewards points.
Winner: Chase Sapphire Preferred® Card
Capital One Venture or Chase Sapphire Preferred: Better Perks?
The Chase Sapphire Preferred vs Capital One Venture cards both have some great perks, but the Chase Sapphire Preferred has more travel benefits. The Capital One Venture spending benefits are a tad bit better though.
The Capital One Venture card earns 2 points per $1 on all purchases. Nifty. The $59 annual fee is waived for the first year, it comes with no foreign transaction fees, and Capital Credit Tracker (gives you access to your credit score).
The Chase Sapphire Preferred comes with 2x points per $1 on travel and dining, no foreign transaction fees, chip & signature technology, primary CDW on car rentals, $10,000 trip cancellation insurance, and many more travel benefits that justify keeping this card in your wallet.
Both of these cards have Visa Signatures benefits, like free movies, hotel discounts, and wine tastings.
I like the simplicity of earning 2x points on all purchases that the Venture offers, but I personally think the Sapphire Preferred has more robust benefits, especially for travel. However, I think it’s a tie on this one because I feel like being nice.
Winner: Tie Capital One Venture & Chase Sapphire Preferred® Card
Ultimate Rewards or Capital One Venture the Best Point System?
Ok, on to the point systems, which really set the Chase Sapphire Preferred and Capital One Venture cards apart.
The Capital One Venture is a fixed value card. Fixed value points can be easier to use, but you can get MORE VALUE with transferrable points, like the Chase Sapphire Preferred’s Ultimate Rewards.
40,000 Venture points are worth $400 in travel. That’s it. $400 in travel is not too shabby, but you can just do more with 50,000 Ultimate Rewards points. A lot more.
Not only do you have the flexibility to use your 50,000 Ultimate Rewards points as $500 in cash back or $625 in travel through the Ultimate Rewards website (20% discount), you can transfer Ultimate Rewards points out to travel partners. This is where the real value is found. The list of Ultimate Rewards travel partners are:
As you can see, there are a lot of options. Some of my favorite travel partners to transfer Chase Ultimate Rewards points out to are Hyatt, British Airways, Southwest, United, and Singapore Airlines.
Here are just a couple examples of how I could get more than $500 in value by transferring my Ultimate Rewards out to travel partners.
I could fly Aer Lingus one-way in business class from Boston to Dublin for only 37,5000 British Airways Avios (transfer partner) points! That same flight could cost up to $3,594, or 359,400 Venture points. Ummmmm, no thanks.
Another example is that by transferring 50,000 Ultimate Rewards points to Hyatt, I could get two free nights at the Park Hyatt (category 5 property) in Melbourne, Australia. Swanky. Two nights at the Park Hyatt in Melbourne can easily run $800, so 80,000 Venture points.
The lesson is that you probably don’t want to primarily earn Venture points if you want to use them for international travel, especially premium travel.
However, fixed value points can be good for trains, taxis, b&bs, and taxes on award tickets. Basically, travel expenses that miles don’t cover.
I think it’s important to diversify your miles and points, so having fixed value points is a plus, but if I had to choose, I would focus on transferable points, because that’s where you can get more value from your points.
Winner: Chase Sapphire Preferred® Card
It’s worth mentioning that Capital One will pull ALL three credit bureaus when seeing if you’re credit worthy for their cards. Ouch. That’s important to know since having fewer inquiries will keep your credit score in better condition, and give you more room to apply for other rewards cards, if that’s your style.
Is the Chase Sapphire Preferred or Capital One Venture the Better Card?
The Chase Sapphire Preferred® Card and Capital One Venture cards both have their advantages. If you want a simple card that earns 2x on all your purchases and is good primarily for domestic travel, then the Venture card can be a good option. However, there’s more opportunity with the Chase Sapphire Preferred. The sign-up bonus is larger (even more if you add an authorized user), points have a better cash value, you get a 20% discount through redeeming through the Ultimate Rewards portal, and you can get INSANE value by transferring your Ultimate Rewards points out to travel partners.
You can see both of these offers on their banks secure website below:
Link: Capital One Venture Card
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Editorial Note: The editorial content on this page is not provided by any bank, credit card issuer, airlines or hotel chain, and has not been reviewed, approved or otherwise endorsed by any of these entities.