Friday, 8 December 2023
Select’s editorial team works independently to review financial products and write articles we think our readers will find useful. We may receive a commission when you click on links for products from our affiliate partners.
Earlier this month, Capital One unveiled the Capital One Venture X Rewards Credit Card, its first premium credit card, adding even more variety to the competitive travel credit card space.
The Chase Sapphire Reserve® is another premium credit card; it launched in 2016 and quickly became a popular choice for travelers looking to earn valuable rewards and take advantage of high-end benefits.
Both cards also come with high annual fees, so you might think twice before having both in your wallet. But which one is best?
Select walks you through the benefits of both cards so you can choose the one that aligns with your financial and travel needs.
Chase Sapphire Reserve Vs Capital One Venture XWelcome bonus50,000 Ultimate Rewards® bonus points after you spend $4,000 on purchases in the first three months from account opening100,000 Capital One mile after cardholders spend $10,000 in the first six months travel credits$300 annual travel credit up to $300 annual travel credit when booking through Capital One Travel; limited time offer: Up to $200 vacation rental credit when you pay with your Venture X cardTSA PreCheck/Global Entry creditYesYesLounge AccessYes: Access to Priority Pass and Chase loungesYes: Access to Capital One and Priority Pass lounge travel insurance YesYes, through Visa InfiniteCell phone protection Yes, through Visa InfiniteYesForeign transaction fees waivedYesYesAnnual fee$550 $395Chase Sapphire Reserve vs. Capital One Venture X Rewards Credit Card
Capital One Venture X Rewards Credit CardRewards10X miles on hotels and rental cars, 5X miles on flights when booked via Capital One Travel; unlimited 2X miles on all other eligible purchases
Welcome bonus100,000 bonus miles after spending $10,000 on purchases within the first six months of account opening
Annual feeIntro APRRegular APR16.99-23.99% variable APR
Balance transfer fee Either $10 or 4% of the amount of each transaction, whichever is greater
Foreign transaction fees credit needed
RewardsEarn 5X total points on air travel and 10X total points on hotels and car rentals when you purchase travel through Chase Ultimate Rewards® immediately after the first $300 is spent on travel purchases annually. Earn 3X points on other travel and dining & 1 point per $1 spent on all other purchases plus, 10X points on Lyft rides through March 2022
Welcome bonus earn 50,000 bonus points after you spend $4,000 on purchases in the first 3 months from account opening
Annual feeIntro APRRegular APR16.99% to 23.99% variable
Balance transfer fee Foreign transaction fee credit needed welcome bonus
Venture X is currently offering a large welcome bonus of 100,000 Capital One miles after cardholders spend $10,000 within the first six months. Capital One miles can be redeemed through the Capital One Travel portal or transferred to one of 17 airline or hotel partners. When these points are redeemed through the Capital One Travel portal, they're worth $1,000.
The Sapphire Reserve is offering new cardholders the chance to earn 50,000 Ultimate Rewards® bonus points after they spend $4,000 on purchases in the first three months from account opening. Similar to Capital One miles, Chase points can be redeemed through the Chase travel portal or transferred to one of its 14 airline and hotel partners. The 50,000 bonus points are worth $750 when redeemed through the Chase travel portal.
Winner: Capital One Venture X, as you can earn twice as many rewards points with the current welcome bonus.
Earning points
Each card has its own unique spending categories, so you'll want to choose your card based on where you spend the most money.
Cardholders with Venture X can earn:
10X miles per dollar spent on hotels and rental cars booked through Capital One Travel5X miles per dollar spent on flights booked through Capital One Travel2X miles per dollar spent on all other eligible purchased the Sapphire Reserve earns:
10X points per dollar spent on hotels and car rentals when you purchase travel through Chase Ultimate Rewards® portal after the first $300 spent on travel purchases annually10X points per dollar spent on Chase Dining purchases with Ultimate Rewards®5X points per dollar spent on flights when you purchase travel through Chase Ultimate Rewards® portal after the first $300 is spent on travel purchases annually3X points per dollar spent on dining at restaurants, including eligible delivery services, takeout and dining out3X points per dollar spent on other travel purchases worldwide (such as airlines, hotels, motels, timeshares, car rental agencies, public transportation and at gas stations) after the first $300 is spent on travel purchases annually1X point per dollar spent on all other purchases Winner: Unless you're booking a significant amount of travel through the Capital One Travel portal, the Chase Sapphire Reserve® offers much broader bonus categories. If you don't frequently dine out though, earning 2X miles on all of your purchases is a pretty good deal.
Redeeming points
Once you earn the rewards, the fun part is redeeming them for free travel. However, some rewards are more valuable than others because of the redemption options.
With Venture X, you have a few options to choose from. You can use your points to erase recent travel-related purchases in the form of a statement credit or redeem them for travel through the Capital One Travel portal at a rate of one cent per point. You can also redeem them for gift cards or cash, but the redemption rate is less than one cent per point. Overall, the most valuable way to redeem Capital One miles is to transfer them to one of the 17 different hotel and airline loyalty program partners.
The Sapphire Reserve provides similar options but at different valuations. You can either redeem your Ultimate Rewards by booking travel through the Chase travel portal at 1.5 cents per point, or you can transfer them to one of the 14 hotel and airline loyalty program partners. You can also take advantage of other redemptions like Pay Yourself Back, gift cards, cash, and Chase Dining experiences.
Winner: Chase Sapphire Reserve®. While both cards offer a variety of options for redeeming rewards, the Sapphire Reserve wins since points can be redeemed for a minimum value of 1.5 cents per point when cardholders book travel through the Chase travel portal. Cardholders redeeming their rewards through the Capital One Travel portal only get a 1 cent per point value.
Benefits
Both cards come with a long list of features, including travel and lifestyle benefits. When analyzing these perks, it's important to reflect on your own needs to determine which perks you would take advantage of. The more benefits you can use, the faster you'll offset the cost of the annual fee.
The Venture X comes with:
$300 travel credit: Receive up to $300 back in statement credits when booking through Capital One TravelLimited time offer: $200 vacation rental credit: Receive up to $200 back in statement credits for vacation rentals booked with your Venture X card10,000 bonus anniversary miles: Every year, you'll get 10,000 bonus miles, starting on your first account anniversary$100 TSA PreCheck/Global Entry credit: You can receive up to $100 every four years after you apply for either TSA PreCheck or Global EntryAirport lounge access: Cardholders get access to Priority Pass and Capital One lounge complimentary Hertz President's Circle status: Benefits include the option to skip the counter and e-return, the widest vehicle selection, guaranteed upgrades, free additional driver and more cell phone insurance: Up to $800 in coverage if your phone is stolen or damaged Comprehensive travel insurance The Sapphire Reserve comes with:
$300 annual travel credit: Receive up to $300 back as statement credits for any purchases that register as travel on your card statement$100 TSA PreCheck/Global Entry credit: You can receive up to $100 every four years after you apply for either TSA PreCheck or Global EntryComplimentary DashPass: This benefit is worth about $119, but you must enroll by Dec. 31, 2021, $60 DoorDash credit: Once you enroll in this benefit, you will receive a $60 credit for any DoorDash order. This benefit expires Dec. 31, 2021, $120 Peloton credit: You can redeem for a digital Peloton membership; this benefit expires Dec. 31, 2021Lyft Pink membership: Receive 15% off car rides, relaxed cancellations, and priority airport pickups Priority Pass Select airport lounge access: Get access to 1,000+ airport lounges in over 500 cities worldwide cell phone insurance Comprehensive travel insuranceWinner: Tie. While Venture X is very focused on travel-related benefits, the Sapphire Reserve has more lifestyle benefits like Peloton credits and Lyft Pink membership. In this case, one card is not better than the other. It simply comes down to each consumer and what they find more valuable.
Annual fee
It's important to consider the annual fees before applying for a premium credit card. High annual fees typically mean the card comes with a long list of perks and statement credits that can help offset the cost. To get the most value out of your card, it's important to take advantage of as many benefits as possible.
Venture X has a $395 annual fee, while the Sapphire Reserve has a $550 annual fee. Additionally, Venture X does not charge for adding authorized users, while the Sapphire Reserve charges $75 each per year.
Winner: Capital One Venture X credit card. The annual fee is much more manageable, and authorized users can enjoy the same benefits for no additional cost.
Bottom line
Both the Capital One Venture X credit card and Chase Sapphire Reserve® are excellent travel credit cards for those who enjoy traveling regularly.
While both cards have great benefits and generous rewards categories for cardholders looking to earn a lot of rewards, the scale slightly leans toward Capital One Venture X. The welcome offer is more valuable than the Sapphire Reserve's, and you can easily offset the cost of the annual fee when you take advantage of the various statement credits.
While we think Venture X is the winner in this matchup, the Sapphire Reserve is still an excellent card for anyone who can afford the annual fee and make full use of the benefits.
It's important to remember is there isn't a single best credit card for everyone. The best credit card is the one that benefits you the most through its features, spending categories, and rewards.
Editorial Note: Opinions, analyses, reviews, or recommendations expressed in this article are those of the Select editorial staff alone, and have not been reviewed, approved, or otherwise endorsed by any third party.
From World News including Title: Chase Sapphire Reserve vs. Capital One Venture X Rewards Credit Card: Which is the better premium travel credit card?
Sourced From: www.cnbc.com/select/chase-sapphire-reserve-vs-capital-one-venture-x-credit-card/
Published Date: 1637764152
Amazon Prime Rewards Visa Signature Card
