Capital One today announced that its ultra-premium credit cards will be launched. New applications for the Capital One Venture X credit card will be accepted starting November 9th. This card is the next big thing or a lot of nonsense?
Capital One Venture X Key Details
Welcome bonus: Get 100,000 bonus miles if you spend $10,000 within the first six months of your account opening. Limited-time offer: Get $200 in statement credits to pay for vacation rentals that you have charged to your account within the first year. The card will go live on November 9, 2021.
Key Card Details:
Annual fee $395
As statement credits, Capital One Travel can give you up to $300 annually in cash back for your Capital One Travel bookings
You get 10,000 bonus miles each year, starting with your first anniversary
Capital One Travel offers 10X Miles on all hotels and rentals cars
Fly through Capital One Travel to Earn 5X Miles
All other purchases qualify for 2X miles
Unlimited access to all-inclusive amenities in the Capital One Lounge (currently scheduled to be at Dallas, Denver, and Washington Dulles Airports).
Priority Pass Lounge Access with Up to 2 Guests
Get up to $100 credit for Global Entry and TSA PreCheck(R).
Authorized users don't pay any fees
Free cell phone insurance
Status in the Hertz Presidents Circle Complimentary
Quick Analysis
I was disappointed when I first saw the Venture X card details. The Venture X card offers the same 2x everywhere card as the Capital One Venture Card, so why spend $300 more per year on travel credits than the Venture Card?
Greg made me rethink my view and I realized that the Capital One Venture X Card might actually be the best ultra premium card available. Yes, that Greg, who Capital One approved him and gave him the welcome bonus. Then, he mysteriously closed his account and paid half a cent for his miles. I could still see the positive side of things and what was missing.
Venture X cards come with a $300 annual travel credit. You must book through Capital One Travel in order to receive this credit. However, anyone who spends $300 annually on flights or hotels through third-party OTAs will likely see it at almost face value. This card is almost net-free, or even better depending on how well you leverage your partners.
It was initially difficult to see it as a different card than the Capital One Venture Rewards card. It didn't seem worth adding $400 to my wallet.
But, as I thought more deeply about it, I began to wonder why I would pay $400 for $400 worth of credit with a better potential. Turkish Miles & Smiles is a favorite of mine. 10,000 miles can be used to purchase a round-trip ticket within the US, even to Hawaii and Alaska. Capital One miles also transfer 1:1 to all partners. This card is a win-win because it can easily be worth more than $100.
Although I was expecting to see a bonus category on the Venture X card, 2x miles is arguably better than any ultra-premium card. Some competitor cards have bonus travel spend (spent directly through providers), and Capital One offers travel booking bonuses. However, Venture X may be a better option for those who have a lot of spend. Most ultra-premium cards only offer 1 point per dollar.
The Venture X is a great option for anyone who only wants one ultra-premium card. Priority Pass for up to two people, access to Capital One lounges and cell phone insurance. The card also includes free authorized users. This card is a great ultra-premium card. Capital One has begun to offer transfer bonuses, such as the one to Air France, and partners are almost 1:1. This makes anniversary miles particularly appealing. With the right transfer bonus, you can turn these miles into 12,000 miles or more.
Capital One continues to lag behind its competitors in two key areas. Approvals: It is still very difficult, if not impossible, to get Capital One cards approved if you have already opened other cards. Capital One is also the only major issuer that consistently pulls reports from all three major bureaus. Another area that they are lacking is a portfolio of cards that can be used to create a winning combination. They do have cards that could be used as companions to Venture X, especially since you can transfer money back to miles and even to other cardsholders. However, it is very difficult to get any Capital One card (and Gregs experience with getting the card then having it removed without explanation). If you have at least one Capital One card, you can put together a great combo.
We don't know much about the card's purchase or travel protections. It could be very interesting if the Venture X offers travel protections comparable to those offered by other premium cards. Update: View from the Wing reports that the card comes with primary car rental protection; lost luggage reimbursement; trip delay + cancellation/interruption reimbursement; cell phone protection; and extended warranty protection. We are still waiting to hear more about these details.
Hertz Presidents Circle is a great benefit. A Chevy Camaro SSS was a great car to rent in San Diego.
Noting that the benefits such as Priority Pass, Capital One lounge acces, and Hertz Presidents Circle status all apply to both the primary cardholder and authorized users and account mangers, it is important to note that these benefits also include Capital One lounge access and Hertz Presidents circle status. This is a great benefit, as there is no extra fee to add authorized users.
Applications for Capital One Venture X will open on November 9th. The welcome bonus of 100K Capital One miles will also be available. Despite the $10K minimum spend, 100K worth of transferable miles is a great offer, especially considering the rebates and $200 short-term vacation rental statement credit kicker. This card is net-free, which I think will make it more attractive than the annual fees creep that we see with other cards.
Although I was initially not impressed, I found that Venture X is a good alternative ultra premium card if it offers travel and purchase protections comparable to the others in the game.
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