Question from Reader: Should I Switch My Points Earning to Capital One Venture X?

Now and again we get questions from readers, and in this particular case, I thought it might be beneficial to share my thoughts via a blog post. You can always email us at milesforfamily@gmail.com or nancy@milesforfamily.com

First things first. This post is meant for folks who have been dabbling in miles and points hobby for a few years and are familiar with various flexible points currencies. If you are new, I suggest looking at this page first.

Anyway, this particular reader was debating on whether he should cancel his Chase Sapphire Preferred card ($95 annual fee) and switch to Capital One ecosystem instead, specifically Capital One Venture X. As you’ve probably guessed, my answer was “it depends.”

There are many factors to consider, like your preferred airline programs and booking classes, your schedule flexibility, as well as airports you tend to use the most. That said, I think my family’s situation is fairly typical of those who participate in this hobby. We have four people (five when my MIL comes with us), my kids are in public school, and we fly 3-4 times per year at most.

So, let me share my perspective below.

Chase Ultimate Rewards vs. Capital One program

To me, it’s not even close. Chase wins, hands down. Here are the programs it partners with that you can’t touch with Capital One: Southwest, Jet Blue, United and Hyatt. Sure, most of these programs have gone through award chart “enhancements” in the last few years, but there is still plenty of value to be had for average folks. In each case, you can easily get 1.3 cents per point, and usually more with United and Hyatt.

I got 1.4 cents per Hyatt point on a Rio Perdido resort in Costa Rica where I would otherwise pay cash

More importantly, all of these programs are easy to use. Just search for your dates online, transfer UR points and book your tickets or hotels. Sure, sometimes there are bugs and phantom availability, but usually things work as intended. On top of it, if you have Chase Sapphire Preferred card, you can get 1.25 cents per point for redeeming them via Chase travel portal towards flights, hotels and car rentals. You get 1.5 cents if you happen to have Chase Sapphire Reserve. Of course, you also have access to Air France and Aeroplan programs if you want to get fancy and redeem points towards business class at a favorable rate. But Capital One has those in its toolbox as well.

Now let’s talk about unique value proposition you can get with Capital One card. I can only think of two useful partners that Chase doesn’t have: Turkish program and Avianca Lifemiles. There is no question that both can be lucrative in certain circumstances, and I’ve just redeemed Avianca miles for a flight from JFK to Brussels. For 22k miles per person in economy I consider it a good deal. That said, Avianca program is very much a mixed bag, with website not working half the time. This is simply not a scheme for busy people who don’t like hassle. On top of it, you have high award cancellation fees ($200 per person in my case), something else you need to take into account. Sure, it’s nice that Capital One partners with Avainca, but remember, you can often buy these miles at a reasonable cost.

Now let’s talk about Turkish program. This is a very useful scheme in theory (who doesn’t like paying 7.5k miles one-way for a United flight to Hawaii?). But good luck finding saver United tickets when your kids are out of school. You also may have to email various Turkish airline offices and wait a few days for a response (which may never come).

Again, I’m not saying it’s not possible to get a ton of value here, but it can be similar to spotting a unicorn if you are a regular family who plans trips during spring break and summer. Last but not least, the miles expire three years after they are earned, with no possibility of extension. It may not seem that drastic, but it’s something else to consider before you pull the trigger. Think about Covid pandemic. Nobody saw it coming. I recently had to use my Asia Miles on a trip from Orlando to DC at a very poor rate, just so I wouldn’t lose them.

In addition, Capital One is still going through some growing pains. Transfers to airline partners can be down for weeks at a time, with no explanation. I’ve seen folks complain that you currently can’t transfer your hard earned points to Avios. Things sort of work, but right now the program is second-tier at best and just doesn’t measure up to Chase, at least IMO. It’s possible things will improve in the future, but if you want the best of the best and like to keep it simple, you should probably stick with Ultimate Rewards. Again, I’m talking about average family like mine.

So, how come I don’t currently have any premium Chase cards, yet keep on renewing our Capital One Venture X card? It comes down to a simple cost vs. benefit analysis.

Why I consider Capital One Venture X card a keeper for now

For those not familiar, this card has a $395 annual fee, which is quite steep. However, it also gives 10k points upon renewal (worth $100 to me) and $300 credit for travel booked through Capital One travel portal. So far, I’ve been able to burn the credit for airfare we needed anyway, where using miles was not advantageous.

When my Venture X card renews in January, I plan to use it towards a flight from Eidenhoven to Krakow or perhaps from Brussels to Antalya (Turkey). It depends on where my Belarusian family is able to meet us, but either way, I will likely opt to pay cash for our flights within Europe. Alternatively, I may use it towards a car rental in Detroit, since the price via portal is the best I’ve found so far. In the two years we’ve had the card, I didn’t have to do any mental gymnastics to use up this $300 credit and utilized it for my existing plans.  

We used the credit for a flight from St. Maarten to Saba, not bookable via miles

So, in reality, I consider the annual fee for this card to be zero. Ok, but why bother keeping the card just to break even? Two words: Priority Pass. It’s unusually generous, since primary cardholder and up to four authorized users get it for free. Plus, each person can bring two additional guests for free as well. We extracted a ton of value from it last year when we met my family in Europe (see related post). This summer we used it a good bit as well, in order to get five people into three lounges. It saved us real cash each and every time.

If stars align, I anticipate using Priority Pass access at least three to four times next year as well. To be clear, I would not pay a whole lot for this perk otherwise. Truth be told, the experience is often quite mediocre, especially at domestic Priority Pass lounges. My husband is not a big fan, because the food is not that great and lounges are often very crowded. Plus, it’s impossible to predict in advance whether you will even have enough time to enter a lounge before your flight. Some airports have Capital One lounges, which are usually a bit nicer. But most don’t.

Still, I insist on using Priority Pass airport lounges when it’s convenient because it usually saves our family real money. Free is free. Even getting a few drinks is worth at least 10 bucks considering high airport prices. Some lounges, like Strata in Auckland are wonderful, but that’s an exception. In general, I keep my expectations low, which is a key to avoiding disappointment. I wish Priority Pass offered by Capital One Venture X covered airport restaurants, but you can’t have everything, comrades.

My conservative estimate is that Priority Pass has saved us at least $100 in food costs this year alone. And that’s nothing to sneeze at. Plus, it doesn’t hurt that the card earns 2 points per dollar. A minor benefit, but still.  The value proposition may change in the future, but right now the juice is worth the squeeze.

Chase Sapphire Reserve is the direct competitor to Venture X, and it’s superior in every way. Travel insurance benefit is better since it covers award tickets. Also, Priority Pass includes airport restaurants, which would be music to my husband’s ears. And of course, let’s not forget the ability to get 1.5 cents per point towards travel redemptions via Chase portal.

But you will pay dearly for these perks. First, the annual fee is $550 and if you have a family of four, you will need to add your spouse as an authorized user (another $75) in order to access Priority Pass lounges at no cost. The travel credit ($300) is superior to one offered by Capital One, since you don’t have t go through Chase portal. And you get $5 monthly Doordash credit, plus $15 monthly Instacart credit. All in al, if you are diligent enough and use Instacart and Doordash each and every month anyway, it’s possible  to get your annual fee down to under $100.

I don’t really use Instacart and prefer Kroger delivery, so this credit is not much of an incentive. Doordash is finally available in my area, but not something I use locally all that much. Plus, I absolutely hate credits that you have to keep track of on a monthly basis. With Capital One’s $300 credit, I usually utilize it in one transaction and don’t have to think about it until next year. I hate the idea of shelling out $625 upfront, only to claw back my tiny credits month after month. Just not my cup of tea, and the reason I would never renew Amex Platinum. But again, different strokes for different folks.

Why not having premium Chase cards doesn’t mean dumping Ultimate Rewards program forever

I happen to have Chase Freedom Flex (earns 5X in rotating categories), and at the moment there is almost 80k Ultimate Rewards safely parked in that account. No, I can’t currently transfer them to travel partners. However, the ability to do so is only a phone call away. I can convert my Chase Freedom or my husband’s Chase Freedom Unlimited to Chase Sapphire Preferred at any time. Ideally, I would do it when I can organically use up CSP $50 annual hotel credit. Sure, I wouldn’t have Priority Pass restaurant access via Preferred card, but it’s not that big of a deal. My Capital One Venture X covers lounges, which is good enough.

So, if you are thinking about breaking up with Chase, there is no need to cut the cord completely. Convert your premium card to Chase Freedom, which is a good product in its own right. Your UR points will be safely stored, waiting for the perfect moment. In a way, it will force you to be careful with your precious stash and not to spend it thoughtlessly. Of course, I assume that in the meantime you have access to other mileage and hotel points currencies, like I do.

Capital One Venture X is worth getting for 75k points bonus alone, despite the high fee. Again, if you value airport lounge access, you can potentially save a good bit of money. Plus, you will have $300 travel credit as well. There was a targeted offer available recently that offered 90k points, which was mentioned on several blogs. But when I Googled the link, it was dead. Update: our referral links are showing 90k points offer.

If you don’t want to shell out $395 on an annual fee, you can get Capital One Venture Rewards (our affiliate link) instead. It also offers 75k bonus points after spending $4000 in first 3 months, $95 annual fee is not waived.

Capital One points transfer 1:1 to many valuable partners like Air France, British Airways Avios and Aeroplan, which may suit your needs just fine. And of course, as a last resort, there is always an option to burn them towards travel expenses at 1 cent apiece.  If you don’t end up liking the program, you can just cancel your Capital One card before renewal fee hits and go back to Chase ecosystem. Just don’t forget to use up your points first.

Leana’s personal referral link for 90k points on Capital One Venture X card

Nancy’s personal referral link for Capital One Venture X