Tuesday, 18 January 2022

Chase Sapphire Preferred vs. Capital One Venture Rewards

Chase Sapphire Preferred vs. Capital One Venture Rewards
09 Aug

Hey I'm Adam Jusko from ProudMoneycom and in this video we're going to compare two travel credit cards — the Chase Sapphire Preferred card versus the Capital One Venture Rewards card

Two credit cards that I consider to be sort of in the intermediate travel space — not the luxury cards, not the no annual fee cards They have sort of a nominal annual fee and they kind of fit in the middle of those things But before I talk about those I would ask you to please subscribe to our YouTube channel if you have not already and if you have I thank you for doing so So, the first card we're gonna look at is the Chase Sapphire Preferred Now this card has no annual fee in the first year and then there's a $95 annual fee after that

That is the same as the Capital One Venture Rewards, so we're looking at pretty much an apples-to-apples in terms of what the costs are of these cards Now the Chase Sapphire Preferred people always want to know about the bonuses that you can get with this type of card

the Chase Sapphire Preferred offers you a 50,000-point bonus if you spend $4000 with the card in the first 90 days of having it Kind of a high hurdle but if you want to hit that bonus you'll get those 50,000 points And assuming you use them for travel, which is what we're talking about so we are going to assume that, those points will be worth $625 in travel

Usually you think of the way points work as a point is going to equal a penny — 10,000 points would equal a hundred dollars for example In this case a point actually equals 125 cents, so with the Chase Sapphire Preferred you're getting a 25% bonus on your points So 50,000 points in this case equals $625 worth of travel, assuming you hit that bonus Now in terms of the ongoing points, you'll get two points per dollar on travel and dining purchases, you're gonna get one point per dollar on everything else

Again, assuming that 25% bonus, the actual worth of those would then mean that it's more like you're getting 25 points per dollar on the travel and dining and then a 125 on the other purchases that you make with the card if you're thinking of it in terms of using it toward travel, which we are There's no foreign transaction fees with this card And one of the big highlights is that it also it gives you a one-to-one transfer with many popular frequent flyer and hotel programs including United MileagePlus, Southwest, British Airways and some other international airlines

In terms of hotels Marriott, Ritz, the IHG program, and Hyatt So that is a popular thing with many people — if you are someone that they're already in those programs, these points can be transferred to those as well

Now let's look at the Capital One Venture Rewards Now this is a card, like I said, same thing with no annual fee, $95 any year after that Has a bonus: you can earn 50,000 points if you spend $3000 within the first three months So it's a that is essentially worth $500 in travel rewards versus the $625 with the Chase Sapphire Preferred, although you have a lower hurdle to get to that bonus But still, assuming you can hit the bonus of either one, this is going to give you a little less in terms of that bonus Now, points-wise, you're going to get two points per dollar on everything that you purchase with this card, so depending on how you spend, this card may give you a little better than what the Chase Sapphire Preferred gives you Because you're gonna get those two points across the board and you also can get 10 points per dollar when you use this card to purchase hotel stays through Hotels

com That's a nice perk but you may not use that super often But it is another way for you to get a little bonus on top of that what is essentially 2% of your travel Again, there's no foreign transaction fees here But unlike the Chase Sapphire Preferred, the Capital One Venture Rewards does not have any exchange partner So you can't put it into United or Southwest or Marriott or any of those other points programs This is a card that you're gonna earn the points and you're gonna use them on a penny per point basis to offset travel purchases that you make with the card

If you've got 10,000 points that equals a hundred dollars in travel that you can then use as a credit on your statement after you have made travel purchases with the card So when you look at those two, there's not a ton of difference Sort of a better bonus with the Chase Sapphire Preferred In terms of the ongoing points, it's sort of a wash Because depending on what you actually spend on, the Capital One Venture Rewards could be better, but the Chase Sapphire Preferred could be better if you really use a lot on travel and dining with this card

Now this all assumes that you use these cards as an everyday card Now even if we think that all those other things are sort of a wash, the fact that the Chase Sapphire Preferred has the one-to-one exchange with these travel partners, as far as I'm concerned, is sort of the tiebreaker here They're not a lot different in a lot of ways, these cards, but that is sort of a big feature, especially if you're already in these programs Now if you're not in these programs, not a ton of difference here necessarily, but if you are that is going to sort of be the tiebreaker as far as we are concerned Now, all of that said, go back to what I said at the beginning of the video

If you are not someone that travels very often, other than the bonuses on these cards, they don't really offer you a ton on an ongoing basis So it kind of doesn't make sense to have them at all after that first year Because as soon as that annual fee kicks in, you would be better off just having one of the top of the line cash back credit cards like the Citi Double Cash that gives you 2% The Capital One Venture Rewards, if you're getting two points per dollar, which is essentially a two percent cash back and using it towards travel, it's really the same thing, but you're spending $95 for it in this case Same thing in some ways with the Chase Sapphire Preferred — yes, you have points that can transfer to other partners, but once that $95 annual fee kicks in, it's a little less attractive, so that's when you really have to start thinking, "well I don't know if I really want to hold these cards beyond that first year, beyond getting that bonus

" And getting these benefits before you have to pay that annual fee So that is it Thanks for watching Please go to ProudMoneycom where we do other credit card reviews and personal finance news and other good stuff too

Thanks Bye

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