New! No-Annual-Fee Card Earns Up to 3% Cash Back

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Via Reddit, there’s a new card that earns 3% on dining, 2% on groceries, and 1% on everything else.

With the Capital One® Premier Dining Rewards Credit Card, you’ll earn a sign-up bonus of $100 when you spend $500 on purchases within the first 3 months of account opening.

That’s not bad for a card with no annual fee.  But it’s NOT a good card for folks just getting into the miles & points hobby!

Capital One Dining Rewards

You’ll Get the Most Cash Back When You Use Your Card for Dining. But There Are Other Cards With Even Better Returns

I’ll tell you what you need to know about this card.  And help you decide if it’s worth it for you!

New Capital One Cash Back Card

Link:   Capital One Premier Dining Rewards

The Capital One Premier Dining Rewards is geared toward folks who spend at restaurants.  Here’s what you’ll get from this card:

  • Earn $100 after spending $500 within the first 3 months of account opening
  • 3% cash back on dining
  • 2% cash back on groceries
  • 1% cash back on all other purchases
  • NO foreign transaction fees
  • NO annual fee

One thing I like about this card is that you can redeem your cash back with no minimum redemption amount.  This is something you can NOT do with many other cash back cards, like the Blue Cash Everyday® Card from American Express, where you can only redeem in increments of $25.

And if you frequently travel overseas, earning 3% back at restaurants with no foreign transaction fees is a nice bonus.

According to folks on Reddit, if you have other Capital One cards and are considering product changing to this card to take advantage of the higher earning rate on restaurants, you won’t be able to do so yet.

Should You Apply for This Card?

If you are new to miles & points, you should NOT apply for this card.  That’s because there are plenty of other more valuable travel cards you should get first.

And applying for this card can hurt your chances of being approved for Chase cards in the future!  That’s because if you’ve opened ~5 or more credit cards (from any bank) in the past 24 months (excluding certain business cards), Chase is unlikely to approve you for most of their cards.

Capital One Dining Rewards

Other Credit Cards, Like the Chase Sapphire Preferred, Can Take You to Hawaii With a Single Sign-Up Bonus

This is a decent no-annual-fee credit card.  While the sign-up bonus isn’t great ($100), it’s no worse than several other no-annual-fee cards, like the Discover It.

But aside from its NO foreign transaction fees and 3% cash back on dining, it’s a below-average card.

For example, there are plenty of no-annual-fee cards that give you 2% cash back on all purchases, not just dining.  For example, the Citi Double Cash earns 1% cash back on all your purchases and another 1% cash back on payments.

Capital One also pulls your credit score from all 3 major credit bureaus, which is NOT good if you plan to apply for lots of other cards later.  It’s like applying for 3 cards, which will lower your credit score in the short-term.

And once you have a certain number of credit inquiries over a 2 year period, your chance of getting approved for credit cards and other loans is greatly reduced.

Other Cards With Comparable Earnings at Restaurants

There are several other cards that get an equal or better return for spending at restaurants, like:

Bottom Line

Capital One has introduced a new cash back card with no annual fee, called the Capital One Premier Dining Rewards.  It comes with:

  • $100 sign-up bonus after spending $500 on purchases in the first 3 months of account opening
  • 3% at restaurants
  • 2% at grocery stores
  • 1% everywhere else
  • NO foreign transaction fees
  • NO annual fee

This is NOT a good card to apply for if you’re new to miles & points, because there are other more valuable cards you should get first.

Emily and I don’t earn a commission on this card, but we’ll always tell you about new and interesting deals!

What do you think of the Capital One Premier Dining Rewards?

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Editorial Disclaimer: Neither the responses below nor the editorial content on this page are provided or commissioned by the bank advertisers, and have not been reviewed, approved or otherwise endorsed by the bank advertisers. Opinions expressed here are the author’s alone, not those of the bank advertisers. It is not the bank advertisers’ responsibility to ensure all posts and/or questions are answered.

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