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If you spend a lot on groceries and dining and are looking for a no-annual-fee card with a straightforward cash back structure, the new Capital One® Savor® Cash Rewards Credit Card could be worth considering.
It comes with a $150 sign-up bonus after meeting minimum spending requirements. And unlimited 3% cash back on dining, 2% cash back on groceries, and 1% cash back on everything else. Which can really add up!
But it isn’t the best card for folks new to miles & points. I’ll explain why.
Capital One Savor Card Review
With the new Capital One Savor card, you’ll earn $150 cash back after spending $500 on purchases within the first 3 months of account opening.
You’ll also get:
- Unlimited 3% cash back on dining
- Unlimited 2% cash back on groceries
- Unlimited 1% cash back on all other purchases
- NO foreign transaction fees
- NO annual fee
Is This Card Right for You?
If you’re just starting out in miles & points, and plan to apply for lots of cards later, the Capital One Savor card is NOT the best card for you. Because there are other credit cards with much higher sign-up bonuses that earn more valuable points and have better travel benefits.
Opening this card could decrease your chances of being approved for great Chase cards later on. Because if you’ve opened 5+ cards in the past 24 months (excluding Chase business cards and certain other business cards), Chase will NOT approve you for many of their cards (though there are some exceptions).
Plus, Capital One pulls from all 3 main credit bureaus when they process your application. And most banks, like Chase and American Express, only pull from one.
So applying for a card from Capital One has a bigger effect on your credit score. And even though the effect is temporary (if you pay your bills on time!), some folks avoid Capital One cards for this reason.
Here’s more about the best card strategy for beginners.
That said, if you already have all the Chase cards you want and you spend a lot of money dining out and on groceries, the Capital One Savor card could be worth it. Because unlimited 3% cash back on dining and 2% back on groceries is excellent for a no-annual-fee card.
And getting a $150 sign-up bonus for a minimum spending requirement of just $500 isn’t too shabby, either. 😉
How to Redeem Your Cash Back
Redeeming the cash back you earn with the Capital One Savor card is easy. You can request a check or statement credit, any time, with no minimum redemption amount.
Or you can set-up an automatic redemption, for example, $25 per month. Whatever is most convenient for you!
Other Cash Back Cards to Consider
Don’t forget about other cards that earn a similar (or better!) cash back rate. Or those that earn more valuable rewards!
For example, the no-annual-fee Fidelity Visa Signature card comes with a $100 sign-up bonus after meeting minimum spending requirements, and earns 2% cash back when you redeem your rewards into a qualified investment account. And with the Citi Double Cash Card, you’ll earn 1% when you make a purchase and another 1% when you pay it off!
The Chase Freedom Unlimited card comes with 1.5% cash back on every purchase. And you’ll get a $150 (15,000 Chase Ultimate Rewards points) sign-up bonus after you spend $500 on purchases in your first 3 months from account opening.
With the Chase Freedom card, you can earn 5% back on rotating categories every quarter on up to $1,500 in combined spending, and 1% back on all other purchases. Plus a $150 (15,000 Chase Ultimate Rewards points) sign-up bonus after you spend $500 on purchases in your first 3 months of opening your account.
But if you have the Freedom or Freedom Unlimited AND other cards like the Chase Sapphire Preferred, Chase Sapphire Reserve, or Ink Business Preferred, you can combine the points you earn from either of these cards and get more from your points by transferring them to airline and hotel partners. And get LOTS of Big Travel with Small Money!
Plus, applying for these cards won’t have as big an impact on your credit score, because these issuers only pull from one credit bureau.
With the new no-annual-fee Capital One Savor cash back card, you can earn $150 cash back after spending $500 on purchases within the first 3 months of account opening.
Plus, you’ll earn unlimited 3% cash back on dining, 2% back on groceries, and 1% back on everything else.
So if you spend a lot on food and are looking for a card with no annual fee and a simple earnings structure, the Capital One Savor card could be worth considering!
But don’t forget, Capital One pulls from all 3 credit bureaus, so when you apply for one of their cards, it will have a bigger impact on your credit score. And if you’re new to miles & points, I always suggest getting any Chase cards you want first, because of their stricter approval rules.
Plus, there are other cash back cards with no annual fee and similar (or better!) cash back rates. Or that earn more valuable rewards!