- 1 Capital One Venture – the card NOT to travel with
- 2 Capital One ® Venture ® Rewards Credit Card vs Capital One ® VentureOne ® Rewards Credit Card
- 3 Chase Sapphire Preferred vs. Capital One Venture Rewards Credit Card Offer
- 3.1 Chase Sapphire Preferred vs. Capital One Venture: Best Sign-Up Bonus
- 3.2 Chase Sapphire Preferred vs. Capital One Venture: Better Card?
- 4 Is the Capital One Venture Card Worth It? Good Alternatives to the Card
Capital One Venture – the card NOT to travel with
Those of you who know me know that I do a fair bit of travel; in the last year and a half I flew at least 250,000 miles through Asia and Europe for work.
As part of being a regular traveler I wanted a credit card with travel benefits. After doing some research I settled on the Venture Card from Capital One primarily because of its decent interest rate and its competitive points system. With that said I still cannot recommend this as a travel card.
Why you ask? Well there is more to a travel credit card than the interest rate and points. To explain let me tell you about my trip to Russia.
First to be honest I did not explicitly tell any of my cards that I was going to Russia. That said when I know I am going to be a heavy traveler like I was in this time of my life I will notify any cards (which I did in this case) I intend to use them while traveling that I will essentially be living on the road.
Though it is a good practice to notify your card companies every time you travel internationally calling them every 3 weeks isn’t a reasonable thing to do — and in my defense until this event it was never a problem.
The first part of the trip was in Belarus where almost no one took cards and I ended up paying for everything with cash — even Internet access. The second part of this trip we went to Moscow and the first time I tried to use the Venture card it was denied.
This is the same card I had previously used throughout the rest of Europe and Asia with no problem. Assuming it was an attempt to “protect” me from card fraud I calmly called support reaching what was apparently a Philippines call center where I was instructed that my card had been flagged as stolen by someone in Russia.
I explained this was the first use of the card in Russia and the suspected fraud was me. The agent informed me that despite this fact in the name of my best interests she would be canceling my credit card.
I of course protested; I was after all in another country for another month and had planed to use the points I earned to cover some of the costs of the trip and more importantly I had left my backup travel cards in Belarus. Without this card I was in essence dependent on the limited amount of cash I had left.
I explained my situation to the agent and was told not to worry that she would have a card to me at my home within 24 hours. I explained again that I was in Russia and that sending card to the states wouldn’t be of any use.
The agent then offered to mail me the card in Russia but couldn’t guarantee when it would arrive. I explained that this could take weeks — when I ship items via the fastest choice to Russia they typically get to the country within two days but don’t get delivered for three or more weeks. The agent responded that that this was the best they could offer but after some pushing I managed to get escalated to someone in the US where I hoped I might get a better answer.
It turned out that the US office was closed at that time but a few days later I did get a call back — unfortunately though it was clear this office at least understood the situation (the agent in Philippines office was very poorly trained) I was informed that since the other agent had already canceled my card there was nothing else they could do other than send me a replacement to my home in Seattle.
This is the core of why I wouldn’t recommend Capital One for a travel card — at least to an international traveler; when your traveling your credit card is your safety net, it is how you handle currency conversions, make sure you can feed yourself, have a place to stay and can handle the surprises you may encounter. More than the points, more than the interest rate this is what a travel card is. American Express built its reputation on being that card and when I have had issues in the past they have been there to help – Capital One on the other hand left me stranded.
Anyway I was so dissatisfied with Capital One’s handling of this when I got home I paid off the balance and did not activate the new card they sent.
Fast forward to over 6 months later and I get an email saying they have charged me the renewal fee for this card that in my mind was closed. I was a little disgusted by them charging me a renewal fee for an account they in-essence took from me when I needed it most but I was going to open a card anyway and decided to activate the card they had sent previously and pay the fee.
When I activated the card the automated system told me the card was ready for use but when I tried to use the card the first time it was denied. Frustrated I set the card aside until I had enough time to mess with their support again.
When I called to resolve this I was treated like someone who was avoiding paying a long standing balance and not someone who was trying to just resolve them miss-handling an issue so I just canceled the card.
Long story short — a good travel card has to have good customer service, they have to be your partner and look out for you and Capital One just doesn’t do that.
Though in my new role I don’t do much if any international travel I do a ton of domestic and have been using the Barclay Arrival card. I have had the occasion to talk to their customer service several times, each time they were professional and helpful. While I have not had a similar situation happen while using them as my primary travel card I suspect based on these experiences they would handle things differently.
Capital One ® Venture ® Rewards Credit Card vs Capital One ® VentureOne ® Rewards Credit Card
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CompareCards: Capital One® Venture® Rewards Credit Card vs Capital One® VentureOne® Rewards Credit Card Showdown
The Capital One® Venture® Rewards Credit Card and the Capital One® VentureOne® Rewards Credit Card are two of the most popular cards we have at CompareCards.com. They are also some of the more confusing cards to compare, after all they are literally "One9quot; word away from each other. It’s a matchup between the big traveler and the bigger traveler. Both of these cards are entirely aimed towards people who like to travel by themselves or as a family. So if you travel, you should really consider both of these cards. Let’s get down to the matchup.
CompareCards Verdict: The breaking point between the two cards is $7,866.67. If you are going to spend below that each year, apply for the Capital One® VentureOne® Rewards Credit Card. If you are going to spend above that, get the Capital One® Venture® Rewards Credit Card.
Matchup: Capital One® VentureOne® Rewards Credit Card vs Capital One® Venture® Rewards Credit Card
40,000 Bonus Miles vs 20,000 Bonus Miles
- In more definitive language, $400 vs $200. You get double the amount of money for the Capital One® Venture® Rewards Credit Card, that’s not to be taken likely. $200 in flights can buy you a ticket more often than not. Winner:Capital One® Venture® Rewards Credit Card
2x miles per dollar vs 1.25x miles per dollar
- Another value that shouldn’t be taken lightly. You get 75 cents more with the Venture Card. So if you use $5,000 on both cards the Capital One® Venture® Rewards Credit Card will give you 10,000 miles and the Capital One® VentureOne® Rewards Credit Card will give you 6,500 miles; a 3,500, or $35 difference. Winner:Capital One® Venture® Rewards Credit Card (depending on how much you plan on putting on your travel rewards card)
$59 annual fee vs $0 annual fee
How Much Do I Have to Spend in Order to Offset the Annual Fee?
A very common question that everyone wants to know before choose one of these two cards is what is the breaking point in regards to the annual fee? Let’s assume that it is year two. You already received your bonus miles, and you already took advantage of the $0 annual fee for the first year. Now we want to see how much we need to spend to offset the $59 annual fee for the Capital One® Venture® Rewards Credit Card card.
Here are the variables:
- Each Mile is worth 1 cent.
- Venture: 2 miles per dollar, $59 annual fee
- VentureOne: 1.25 miles per dollar, $0 annual fee
- The Venture makes .75 more miles per dollar.
The Capital One® Venture® Rewards Credit Card needs to cover the annual fee, so take that number and divide it by the difference. $59 / .75 per mile = 78.66
78.66 * 100 (since each mile is worth 1 cent, multiply by 100 to get the correct dollar amount)
You need to use just $7866.67 on the Capital One® Venture® Rewards Credit Card in order to make more than $59 in a calendar year.
Which Capital One Credit Card is Better?
Both the Capital One Venture and Capital One® VentureOne® Rewards Credit Card are great cards to have. It all comes down to how much you travel/how much you want to travel. If you are single and travel sparingly, the Capital One® VentureOne® Rewards Credit Card might be for you. If you travel a lot, or have a family that likes to take vacations, the Capital One® Venture® Rewards Credit Card is definitely up your alley. The biggest deciding factor there is whether or not you plan on using roughly $8,000 on your card, if you don’t think so get the Capital One® VentureOne® Rewards Credit Card. If you think you’ll be over that, get the Capital One® Venture® Rewards Credit Card.
Which one did you choose? Comment below on your review of whichever card you chose.
CompareCards: Capital One® Venture® Rewards Credit Card Quick Review
The Capital One® Venture® Rewards Credit Card is one of our most trusted and applied for credit cards. It's meant for people who travel a lot, with some of the best travel rewards that any credit card offers. Right off the bat, it offers a one-time bonus of 40,000 miles once you spend $3,000 on purchases within 3 months of account opening, equal to $400 in travel. You also earn 2 miles per dollar on every purchase, every day.
If you like to travel a lot, the Capital One® Venture® Rewards Credit Card tops the market. It's not limited to a specific airline or hotel chain. It is redeemed as credit on your statement for your travel purchases. It's annual fee is $0 intro for first year; $59 after that.
What's the Best Unique Feature About the Capital One® Venture® Rewards Credit Card?
The best part is the one-time bonus of 40,000 miles once you spend $3,000 on purchases within 3 months of account opening, equal to $400 in travel, which essentially earns one or two free round trip tickets to any airport within the United States. On top of that, you're not limited to any specific airline. So feel free fly United, American, or Virgin Airlines!
What's the Capital One® Venture® Rewards Credit Card's Downfall?
It’s a very travel incentivized card. So, if you don’t travel a lot or don’t plan on traveling much in the coming years, there are probably better cards out there for you. But if you like traveling even just once a year, this card can help you get there at a reduced rate.
How do I Redeem the Capital One® Venture® Rewards Credit Card No Hassle Miles?
After making a purchase (flight, cruise, hotel or car rental) with your Venture Card, access your credit card statement within 90 days of the purchase, and use their new Purchase Eraser to literally erase costs off of your credit card. This can be done through desktop or mobile device.
Is the Capital One® Venture® Rewards Credit Card for You?
If you like to travel a lot, enjoy getting travel rewards, and don't want to pay a high annual fee, then this card fits all of your needs.
CompareCards: Capital One® VentureOne® Rewards Credit Card Quick Review
The annual fee for this card is $0. That alone is enough incentive to try out this card and get your One-time bonus of 20,000 miles once you spend $1,000 on purchases within 3 months of account opening, equal to $200 in travel. Remember that flashy new 60-inch HDTV for $1,000 you’ve been looking at? If you use your shiny new Capital One® VentureOne® Rewards Credit Card you’ll immediately receive 20,000 miles + 1,250 miles from the purchase, and have a low APR of 0% intro on purchases for 12 months!
This card is great for Singles or Couples looking to travel once a year, or even just use it once. If you get it today, reach your goal within 3 months, you’ll be on your way to anywhere in the country with over $200 in credit. Vegas here we come! If you want to travel without an annual fee, this card is the one for you.
Pros of the Capital One® VentureOne® Rewards Credit Card
- In case it wasn’t mentioned enough, $0 annual fee. It’s perfect for helping you save on a trip you have later in the year.
- You don’t have to commit to the card, and are welcome to hold onto it without incurring additional fees.
- There aren’t specific places you need to use it at, you get the same 1.25 miles per dollar on every purchase, every day.
Cons of the Capital One® VentureOne® Rewards Credit Card
- Its initial bonus isn’t as high as some other cards.
- Not great for cash back rewards.
- It’s highly travel incentivized
What’s the Best Way to Use The Capital One® VentureOne® Rewards Credit Card?
This card is used for anything. Meaning no matter what, you’re going to get the same rewards. It’s perfect for people who purchase from many different places and want to rack up rewards. Then when vacation time strikes - this card is perfect to use as a getaway, especially with no foreign transaction fee.
This is definitely a travel-based reward system. So if you have big travel plans, or want to take your family or spouse out once a year this card can definitely help save you some money along the way.
*General Disclaimer: See the online credit card application for details about terms and conditions. We make every effort to maintain accurate information. However, all credit card information is presented without warranty. To confirm terms and conditions, click the "Apply Now" button and review info on the secure credit card terms page.
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How to Break Into Venture Capital
“I’m an engineer with a 3.6 GPA at a top university. I have a full-time investment banking offer lined up at Credit Suisse, and I’ll be working in their tech M&A group. Do you think I can I break into venture capital?”
While venture capital receives less attention than private equity and hedge funds, I’ve gotten many, many VC-related questions over the years.
In this 2-part interview (part 2 on the job itself, lifestyle, hours, and pay right here), we’re going to speak with an investment banker who broke into venture capital.
In part 1 – focused on recruiting – you’re going to learn:
- How to make the move from investment banking to venture capital
- What types of people VC firms look for and the 3 entry points into VC
- The role of headhunters in the VC recruitment process
- How resumes and interviews for VC differ from banking and PE
- How to position yourself to break into the industry
Q: Can you tell us about your background and how you got into finance in the first place?
A: Sure. I studied engineering at a top university in the US – I wasn’t sure what I wanted to do afterward, so I applied to Master’s programs and took a combination of math, finance, and engineering classes once I got into my top choice.
Since it was a target school and the market was much better back then, banks and consulting firms came to recruit at my school and I interviewed for everything from engineering jobs at companies like Google to consulting and finance positions.
Ultimately I had become more interested in business, so I went to a well-known tech banking group.
Q: Right. We’ve been over how to break into investment banking about 597 times before, so let’s skip over that and talk more about getting into VC.
Did you know you wanted to get into the industry in the beginning, when you first started out in banking?
A: No, I barely knew anything about the buy-side and exit opportunities in the beginning. At bulge bracket banks you get exposed to this early on because headhunters start calling you 6 months into your time on the job, but at smaller and regional places you don’t get as much exposure.
By the time I started thinking about exit opportunities, I had been working for a few years and had already been promoted to Associate – so I didn’t want to leave right away.
After I had been an Associate awhile I started looking more seriously at buy-side job postings on sites like Glocap and I began to contact headhunters in my area, but at that point I still wasn’t set on VC.
Q: You mentioned job posting sites and headhunters – don’t you have to network a lot to break into VC?
I always thought that networking was even more important there because the firms are so small and they have less money to spend on recruiting compared PE firms or banks.
A: Networking and cold-calling Partners yourself can be helpful – and especially when it’s a bad market you need to do more of it.
But a lot of it depends on what type of firm you want to work at. The biggest and most well-known VC firms – think Sequoia – use headhunters, as do many late-stage VCs. The smaller the firm and the less capital they manage, the less likely they are to use headhunters.
I didn’t network that much because I had a brand-name school on my resume, I was already in banking, and I was aiming for late-stage funds that actually used headhunters.
Q: Right, so let’s talk about headhunters in the VC industry. I’ve written before that in private equity – at least in the US – the 3 major recruiting firms are SG Partners, CPI, and the Oxbridge Group, with a few others also contributing. Are those 3 active in venture capital as well?
A: SG Partners doesn’t do much early stage VC recruitment, CPI had a good number of VC openings, and Oxbridge I can’t speak to because I didn’t work with them too much.
Glocap had a good number of VC openings across different types of funds, and I used them quite a bit – I’m not sure how good they are for PE or hedge funds, but for VC they were helpful in my search.
Q: Interesting. I dealt mostly with SG, CPI, and Oxbridge when going through private equity recruiting but I guess it’s different for venture capital.
What do recruiters look for when you apply to VC jobs? I’m assuming they act as the “initial screen” and then recommend you for interviews depending on their impressions of you?
A: Yeah, that’s accurate. What they look for is not too much different from what headhunters in private equity or investment banking look for: they want people who are well-spoken, have good deal experience, and show the potential to source investments themselves.
The last point in particular is really important for the buy-side because even at the Associate level, you’ll be expected to cold-call executives and find interesting companies yourself.
Q: Are they looking for any particular type of person? For example, do VC headhunters value banking experience more than consulting or business development experience?
A: I would frame it a little differently. There are 3 entry points into venture capital:
- Pre-MBA: You’ve done banking, consulting, business development, or product management before and now you want to apply what you’ve learned to invest in tech companies.
- Post-MBA: You’ve done any of the above or maybe you’ve been an engineer or marketer or anything else, and you’ve gone to business school to re-brand yourself.
- Operating Partner: You’ve been a VP of Sales at Oracle or another tech company for 10 years, and you’ve had a lot of success and risen to a senior level. Your boss or another colleague knows a VC, and you get a referral like that.
Of these methods, #3 is the most difficult to use when breaking in because you actually have to be successful in the real world.
At the pre-MBA level, they like bankers with good deal experience or anyone with product management / business development experience at tech companies because you have a lot of insight into how companies operate.
Consulting backgrounds are also good, but some are more helpful than others – advising tech companies on strategic partnerships is a lot more relevant than doing HR consulting, for example.
At the post-MBA level you see people with a wider variety of backgrounds getting in – you just need to go to a top school and have access to recruiting channels there.
Pedigree also matters quite a bit – not so much in terms of the specific bank you worked at, but more so with the university or business school you attended. VC firms are very traditional and they get tons of resumes, so they like to take the path of least resistance and filter by school name.
Stuff Venture Capitalists Like
Q: Interesting. I guess it’s unlike private equity, where you pretty much need to have been an investment banking analyst before breaking in at the post-MBA level.
We’ve talked about the entry points and what recruiters look for, but what about venture capitalists themselves? What characteristics do they look for in recruits?
A: It depends on what type of VC firm you’re applying to – Early stage? Late stage? – and what the firm’s focus is – Sourcing? Due diligence? Portfolio company work?
Each firm focuses on different things, so they look for different qualities in recruits. Let’s take a firm that’s very heavy on sourcing – an example would be Summit Partners, where you do a lot of cold-calling as an Associate.
A firm like that would assess how presentable you are in front of a CEO, how articulate you are, and how confident you are in making presentations and talking to people. In an interview, they might even ask you to make an impromptu presentation to them.
The closer a firm moves to the “private equity” side of the spectrum, the more important due diligence and deal execution work becomes.
So those types of firms expect you to know a lot about coordinating lawyers, accountants, and bankers, analyzing a company’s financial statements and creating financial models – similar to investment banking.
Early stage firms place more of an emphasis on sourcing, market sizing, and investment thesis development – e.g., how many people will adopt Mobile TV? When will it hit the “tipping point?”
Interviews at those places are very subjective and consist of chatting about the industry, recent trends, and companies you’re interested in.
Finally, some firms focus more on working with portfolio companies – they’re not as common as late-stage or early-stage VC firms, but they do exist.
They’re more interested in people with strong operating backgrounds and anyone who has experience creating and managing products, developing partnerships, marketing to customers, and so on.
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Q: Wow, I didn’t realize there was so much variety just within venture capital. Most people just think of trying to find the next Twitter or Facebook when you talk about VC, but there’s a lot more to it than that.
You mentioned what types of people different VC firms prefer to recruit, but is there anything that all firms really like to see? Any common mistakes that recruits make when pitching themselves to VCs?
A: I’d say the biggest point is having a strong opinion on a given company or industry. Lots of people walk into interviews and just casually chat about the tech industry without expressing a specific opinion.
That’s fine if you’re an investment banker, but on the buy-side you’re making investment decisions and you need to be very opinionated about what industry is going to take off and what companies you should invest in.
You need to be ready to go in there and say, “XX is awesome because of points #1-6, and they’re going to be huge in 5 years – we should invest in them.”
The other mistake a lot of people make is focusing too much on a company’s products rather than its market position and how it stacks up against the competition. Even though VCs invest in technical companies, investing itself is still a business decision driven by the market rather than technical product details.
What’s important to emphasize on your resume or CV when applying to venture capital jobs?
A: You don’t want to seem like you’re a hedge fund, PE, or quantitative finance guy or girl – they want people who are interested in startups and technology.
Deal experience is fine to list but you want to focus more on how you worked with CEOs and other executives and the market sizing / business development work you did.
They don’t want to look at your resume and see tons of numbers and obscure acronyms everywhere.
In the Interests section, you want to list items that are related to technology (or bio-tech / clean-tech if you’re applying to those types of VC firms).
VCs would rather have presentable people with a passion for technology than number crunchers with no interest in startups.
Q: Ah, ok. So if you’re applying to VC jobs, you can use the deal experience resume template but you might have to modify your descriptions a bit. What about the interview process for VC firms – how is it different from investment banking and private equity?
A: It’s very informal. They’ll say, “Come in for lunch and let’s chat. We’ll see who’s around and they can sit down and meet with you.”
You’re just going in to have casual conversations with the Partners – compare that to private equity interviews or investment banking interviews, which are more structured and technical.
They might respond quickly or they might drag out the process over many months – there’s never a rush unless you have an exploding offer.
VCs pay less money than PE firms, so they can’t just throw wads of cash at you and expect you to work 80 hours a week for them.
They are obsessed with cultural fit because they don’t want people who are in it only for the money – they want people who are genuinely passionate about technology and finding exciting companies.
This is in total contrast to banking, PE, and hedge funds, where many people only do it for their year-end bonus.
Q: So I’m guessing you never received modeling tests during the recruiting process?
A: Nope. Even at late-stage firms I didn’t get modeling tests – though again, if you move closer to the private equity side of the spectrum they might be more common.
One other point I would raise: we’ve mostly spoken about VC firms that invest in technology companies.
But if you go to one that does bio-tech, healthcare, or clean-tech investments, you may get more detailed technical questions on the technology itself – they may ask you about fuel cells or different types of solar panels, for example.
Q: Great. I just have a few more random / miscellaneous questions that we haven’t gotten to yet.
A: Either do investment banking or consulting first, or get an MBA from a top school. There are just too many other engineers who want to do venture capital and you won’t stand out unless you have some kind of “validation.”
I have a few friends who didn’t even do banking or consulting before business school but who are now going to VC firms – just because they got an MBA from a top school.
Some people argue that you have to have been a successful entrepreneur or operator to be a good VC – do you think that’s true?
A: No. The VC industry – just like investment banking or private equity – has many artificial barriers to entry, but in reality lots of people could do the job.
If you look at one of the top VCs in the world – Mike Moritz at Sequoia – he was a journalist at Time before getting into the industry.
He’s an outlier, of course, but I’ve seen lots of data showing that there is no correlation between operating experience and being a good investor.
It’s a “gut feeling” type of business, and having experience starting companies doesn’t mean you’ll be great at investing in companies.
Q: Another common argument is that you need a lot of connections to break into VC, because they want people who can tap their networks to find great companies.
If you look at the websites of some VC firms, the Associates seem to fall into that category – they’ve worked in a certain industry for a number of years and have a huge Rolodex. How important do you think connections are?
A: I don’t think it’s that important at the junior level.
Most firms don’t expect you to come in as a former investment banking analyst with a huge Rolodex – connections are more important if you’re moving in at a more senior level or you’re going to a “premium” firm like Sequoia or Kleiner Perkins where they want people who can hit the ground running.
Q: Awesome, thanks for your time. We could keep going but this is already quite long, so let’s pick up with part 2 next time.
Next In This Series: “What Do You Do as a Venture Capitalist?” – What you do day-to-day, how much you get paid, how you advance, and what our interviewee liked and disliked about the industry.
Chase Sapphire Preferred vs. Capital One Venture Rewards Credit Card Offer
It can be tough choosing the right rewards credit card, so today, I’ll be reviewing the Chase Sapphire Preferred vs. Capital One Venture credit card offers.
The Chase Sapphire Preferred or Capital One Venture credit 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:
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).
Which is better Chase Sapphire Preferred vs. Capital One Venture?
Side By Side Comparison
Capital One Venture Rewards Credit Card
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.
Chase Sapphire Preferred vs. Capital One Venture: 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.
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.
Chase Sapphire Preferred vs. Capital One Venture: 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:
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Is the Capital One Venture Card Worth It? Good Alternatives to the Card
Capital One does a great job at marketing, but when you dig in and look at the details, some of the cards aren’t worth keeping after the first year.
The sign-up bonus for the Capital One Venture card is 40,000 points for $3,000 in spend. When you redeem the points for travel, they’re worth 1 cents per point.
40,000 points x 1 cents per point = $400 value/ $3,000 in spend = 13.3% return on spend
Another option is to redeem the points for gift cards or cash, but that lowers the points valuation to 0.5 cents per point.
There’s a $59 annual fee that’s waived the first year.
If you have any other no annual fee credit card like the Chase Freedom and the Citi Double Cash, you can get the same benefits.
Capital One Points vs. Chase Ultimate Rewards
- 2x points on all transactions
- Redeem towards travel = 1 CPP
- Redeem as a statement credit = 0.5 CPP
- 2x points on dining and travel
- 1x points on everything else
- Redeem towards travel = 1.25 CPP to 2 CPP
- Statement credit = 1 CPP
- = 500 statement credit (cash)
- = $1,000 in travel
- = $1,000 statement credit (cash)
- = $1,250 travel via travel portal
- = $2,000 (or more) travel via transfer partners
When you compare these two cards, it depends on how often you travel and how you plan on redeeming points.
A good alternative to the Capital One Venture card is the Citi Double Cash card. You earn 2% cash back on every purchase, and it can be redeemed for straight up cash.
Given that both cards give you 2% back, you might as well opt-in for cash instead of being forced to redeem points for travel.
Citi Double Cash points are valued at 1 CPP when you redeem for statement credit, as opposed to Capital One, which is valued at 0.5 CPP.
Another thing to consider is the Citi Double Cash card does not have an annual fee. The Capital One card has a $59 annual fee, waived the first year. With better alternative cards on the market, it’s not worth keeping the Capital One card after the first year.
If you travel, the Capital One card has no foreign transaction fees. The Citi Double Cash card has a 3% foreign transaction fee.
Even with the fee, unless you plan on charging
$2,000 on your credit card, it doesn’t make sense to get the Capital One card.
- 2% back on everything when redeemed for travel
- $59 annual fee
- 2% back on everything, redeem for cash back
$2,000 foreign spend = $59 in fees
If you have the Venture card and want to product change it to a no annual fee card, the Quick Silver card is a good option.