Which Travel Rewards Card Would I Start With?
If I had to start over with credit cards and award travel with the knowledge I have now, what is the first card I would get? For me the answer is the Capital One Venture X Rewards card. There are a number of reasons for this. The card’s $395 annual fee is covered by the annual travel credit ($300) and annual 10,000 mile bonus ($100+ value), two ways you can redeem your miles, a solid sign-up bonus and great travel benefits. Below we’ll go more in-depth with a TLDR summary at the end.
This really is a great all around first rewards card (or any time after also). First, it provides an easy approach to earning points (miles). Some cards have confusing bonus categories, but the Capital One Venture Rewards Card is simple: earn 2 miles per dollar on every dollar spent. Also provides 10 miles per dollar on hotels and car rentals made through Capital One Travel and 5 points per dollar on flights booked through Capital One Travel. This means if you spent $100 on an everyday purchase, you’re getting 200 miles for that purchase. 2x per dollar on everything is a very strong return rate.
Reason number 2 is that the card only has a $395 annual fee, which isn’t as high as other top tier travel cards and is completely covered by the travel credit and anniversary miles. These mean that each year you keep the card open, you receive a new $300 travel credit (can be used for travel booked through Capital One Travel) and 10,000 miles (which are worth a minimum of $100 as we will see)
The third reason is that there are multiple ways to redeem/use the miles that you earn. You can redeem them to cover travel purchases with 1 mile = 1 cent. For example, if you had a travel purchase, say an uber charge for $15, you could pay for that charge using 1500 miles. This process is extremely easy, so even in the event you find yourself not wanting to pursue more complicated rewards travel, you can easily use your points and get solid value. The second (and more lucrative) way to use the points is to transfer them to a travel partner. This is where you can get the most value for your miles, particularly if you book international business or first class flights. You could book a roundtrip business class airline ticket to Europe for 126,000 miles using the right transfer partner (compared to a cash price of $4,000 for that same flight).
The 4th reason is that the sign-up bonus of 75,000 points after spending $4,000 in the first 3 months, which is worth a minimum of $750 when used to cover your travel purchases and far more when used for airline flights. One underrated aspect to this card is that it’s a Visa, meaning that it has great acceptance worldwide (can be used at Costco) and has no foreign transaction fees so you can use it without worry when you’re on your amazing overseas vacation.
Finally, with regards to travel, you will get a $100 credit for TSA PreCheck® or Global Entry every 4 years along with unlimited access to the new Capital One Lounges. Currently there is a Lounge in Dallas-Fort Worth (DFW) with more opening soon in Denver and Washington, DC. You also get free entry for 2 guests with you, which is perfect for small groups traveling together.
TLDR:
Capital One Venture X Card is the first rewards credit card I would get if I had to start all over.
The reasons for this opinion:
1. No confusing spending categories, you simply get 2 miles per dollar spent or 5x and 10x on spending for travel through Capital One Travel portal.
2. $395 annual fee isn’t as high as other premium travel cards, comes with yearly bonuses and credits that are worth $400 and comes with great benefits.
3. 2 good ways to redeem miles. Cover purchases at 1 mile = 1 cent (essentially wipe out purchases that are “travel”). Can transfer your miles to travel partners for even more value.
4. 75,000 sign up bonus is worth at least $750 (potentially much more when transferred), which far outweighs the annual fee price.
5. The card is a Visa which means it is widely accepted worldwide (can also be used at Costco) and comes with no foreign transaction fees.
6. Get a credit of up to $100 every 4 years to cover TSA PreCheck® or Global Entry application as well as unlimited access to Capital One airport Lounges.
