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If you’re in the market for a travel rewards card, there’s one major decision that will help narrow down your choices: do you want to redeem your points as a statement credit, or transfer them to a loyalty program? The answer depends on how you earn points and how you travel.
In this article, we’ll compare the value of miles earned on the Venture Card with the value of the transferable points offered by some other travel rewards credit cards. In other words, Capital One® Venture® Rewards Credit Card vs. Transferable Points.
How Does the Capital One Venture Card Work?
The Capital One Venture Card earns 2x miles on all purchases. You can redeem those miles in two ways. You can get a statement credit towards travel-related purchases or book travel through Capital One. Either way, your miles are worth 1 cent each, making for an overall redemption rate of 2%.
However, compared to some similar travel rewards cards, that 2% redemption rate can be pretty low. But, that depends on how exactly you earn and use your points.
Credit Cards with Transferable Points
The Venture Rewards Credit Card doesn’t let you transfer your miles to another points program, but similar cards do. The Chase Sapphire Preferred®, Premier Rewards Gold Card from American Express, and Citi ThankYou Premier all offer extra points on travel purchases, carry similar annual fees, and let you transfer your points to a partner airline, hotel, and retail loyalty program.
You’ll usually get the best value out of transferring your points to an airline transfer partner, but your exact redemption rate will depend on how good of a deal you find on an award flight. To understand how to maximize your points on an award flight, let’s take a closer look at each of those three cards.
Chase Sapphire Preferred
The Chase Sapphire Preferred earns 2x points on travel and dining and 1x points on all other purchases. You can use your Preferred points to book travel through Ultimate Rewards (for 1 cent each) or you can transfer them at a 1:1 ratio to one of the card’s 11 airline and hotel transfer partners, including Air France/KLM Flying Blue, British Airways, Korean Air, Singapore Airlines, United Airlines, and Virgin Atlantic.
Citi ThankYou Premier Rewards Credit Card
The information for the Citi ThankYou Premier Rewards Credit Card has been collected independently by Johnny Jet. The card details on this page have not been reviewed or provided by the card issuer.
Citi ThankYou Premier Rewards Card earns 3x points on travel, 2x points on dining and entertainment, and 1x points on all other purchases. This card comes with a slew of redemption options (like booking travel through the ThankYou Travel Center at 1.25 cents per point) and lets you transfer your points to their airline, hotel, or retail partners.
With Chase’s Ultimate Rewards, you’ll always get a 1:1 transfer ratio. With AMEX and Citi, you’ll have to check their promotions before you transfer your points. With all three cards, however, point transfers are final.
How to Redeem Your Points
With the Capital One® Venture® Rewards Credit Card, you’re capped out at a maximum redemption rate of 2 cents per dollar, or 2%. However, with transferable points, that math gets a little trickier.
You’ll generally get the best value out of transferable points by transferring them to an airline partner. Maximizing your value is then a matter of determining which airline offers the best award flight for your route.
To give you a few examples, let’s look an airline that partner with Chase, AMEX, and Citi: Singapore Airlines.
Singapore Airlines is known for offering excellent award value on First Class international flights and has a straightforward awards chart. Let’s say we want to fly round-trip on Singapore Airlines between San Francisco (SFO) and Bangkok (BKK). How much would that cost in miles?
I’ve found a flight that fits my schedule, and it will cost either $785 (plus taxes and fees) or, according to the awards chart, 76,000 miles.
Therefore, in the Capital One® Venture® Rewards Credit Card vs transferable points debate, what works better? How much spending would it take to save up for that flight? Here’s the math:
Capital One Venture Card: $39,250
You would have to book this flight through Singapore and redeem your Venture miles for a statement credit. At a 2% rewards rate, you would need to spend $39,250 to be able to redeem 78500 miles for a statement credit toward that round-trip ticket—not including taxes and fees.
Chase Sapphire Preferred: $38,000
Let’s take a closer look at this popular card. For instance, let’s say you only used the Chase Sapphire Preferred for its 2x bonus categories. You then transferred your points to Singapore Krisflyer and booked the flight online with points. You would need to spend $38,000 to earn the 76,000 points for this flight. That comes to a redemption rate of 2.1%.
Citi ThankYou Premier: $37,250
Like with the AMEX Gold, your overall redemption rate with the ThankYou Premier depends on how much of your spending falls into the card’s bonus categories. Let’s say you spend $500 in the travel category (for 3x points, coming to 1,500 points). You also come up with the rest of your points by making charges in the card’s 2x spending categories. The math is then the same as with the AMEX Gold. You’d have to spend $37,250, for a redemption rate of 2.1%.
The math above shows that in the Capital One Venture Card vs transferable points debate, the other cards are only slightly cheaper for an economy flight. BUT, transferable points are more valuable when you’re looking to redeem your miles for a business or first class flight. That’s because those flights generally cost $5,000 – $15,000. It would take a considerable amount of fixed value points to make those redemptions. However, miles in an airline program will stretch much farther which really makes your transferable points more valuable.
Capital One Venture Card vs Transferable Points
In this example, the transferable points from Chase, AMEX, and Citi are only slightly more valuable. But they are still close to the statement credit redemption option from the Venture Card. Those numbers can still fluctuate though. However, depending on how well you take advantage of each card’s bonus spending categories, what kind of deals you can find on award flights, and whether or not you take advantage of your card’s welcome bonus, these may change.
If you’re deciding between signing up for the Capital One Venture Card vs transferable points credit cards, there are a few main factors to look at. Will you be able to earn their welcome bonuses? Will you be able to take full advantage of their bonus spending categories? Which transfer partner offers the best award flight for your trip?
In summary, ask yourself these questions and analyze your spending. This will help you make the right choice for you in the Capital One® Venture® Rewards Credit Card vs transferable points credit card debate.
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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.