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But if you’re deciding between both cards, there are differences to be aware of!
Million Mile Secrets reader, Natalie, commented:
I have the Capital One Venture Rewards Credit card and I can purchase a flight then use the ‘fare eraser’ to use my points to pay for that flight.
Does the Chase Sapphire Preferred do the same? I LOVE that it gives you 2X Chase Ultimate Rewards points per $1 on certain things!
And even better, you can transfer Chase Ultimate Rewards points to airline and hotel partners. The Capital One Venture has this ability too, but in most cases, Chase cards are a better pick.
Capital One Venture Vs Chase Sapphire Preferred
Apply Here: Capital One Venture Card
Apply Here: Chase Sapphire Preferred Card
|Card||Sign-Up Bonus||Benefits||Foreign Transaction Fees||Annual Fee|
|Capital One Venture Rewards Credit Card||50,000 Venture miles when you spend $3,000 on purchases within the first 3 months of opening your account||• 2X Venture miles on every purchase|
• Redeem for cash back at .5 cents per mile
• Redeem for paid travel at 1 cent per mile
|None||$95 annual fee, waived for the first year|
|Chase Sapphire Preferred||60,000 Chase Ultimate Rewards points when you spend $4,000 on purchases within the first 3 months of opening your account||• 2X Chase Ultimate Rewards points on travel and dining|
• 1X Chase Ultimate Rewards points on other purchases
• Redeem for cash back at 1 cent per point
• Transfer to airline and hotel partners like United Airlines, Southwest, British Airways, and Hyatt for Big Travel!
|None||$95 annual fee|
Many folks like the Capital One Venture card because you can use the miles you earn for paid flights. Plus, you earn 2 Venture miles per $1 you spend on all purchases. So you don’t have to worry about blackout dates, tracking bonus categories, or sorting through award charts.
With the Chase Sapphire Preferred, you’ll only earn 2X Chase Ultimate Rewards points per $1 on travel and dining purchases. But not all points are created equal!
The Chase Ultimate Rewards points you earn with Chase Sapphire Preferred can be worth much more than Capital One Venture miles. But it depends on how you redeem them.
5 Things You Should Know: Capital One Venture Vs Chase Sapphire Preferred
1. What Are Your Rewards Worth Toward Paid Travel?
With the Capital One Venture card, your miles are worth 1 cent each. And because you earn 2 Venture miles on all purchases, you’re essentially earning 2 cents toward travel for every $1 you spend.
You can use your miles for nearly any travel purchase, like taxi rides, hotels, room service, and free flights.
To redeem your miles for travel, just buy travel like you normally would with your card. Then, you have 90 days to sign-in to your online account, find the travel purchase, and “erase” it with your miles!
There’s NO minimum redemption increment when redeeming miles, unless you’re using miles to partially pay for a travel purchase. In that case, the minimum is 2,500 miles ($25).
Natalie likes her Capital One Venture card because she doesn’t have to worry about blackout dates and she earns miles and points for her flight or hotel!
But she can also book airfare, hotels, and rental cars through the Chase travel portal by redeeming points she earns with Chase Sapphire Preferred card. Chase Sapphire Preferred cardholders get 1.25 cents per point worth of value when booking paid travel through the Chase Travel portal. This is a better deal than the 1 cent per mile she gets with the Capital One Venture card.
And I’ve found prices through the Chase travel portal are similar to what you’d find on Expedia, Priceline, or other online travel agencies.
2. What Are Your Spending Habits?
Which card is better depends on how much bonus category spending Natalie has.
If she does NOT make a lot of travel and dining purchases to earn 2X Chase Ultimate Rewards points with the Chase Sapphire Preferred, most of her purchases will earn 1 Chase Ultimate Rewards point per $1. So she’ll get 1.25 cents per $1 spent (on non-bonus spending like groceries).
In this case, the Capital One Venture card’s 2 cents per $1 spent is a better deal.
But if travel and dining purchases make up more than 60% of Natalie’s purchases, she’ll get more travel with the Chase Sapphire Preferred.
That’s because she can earn 2.5 cents (2X Chase Ultimate Rewards points on travel & dining X 1.25 cents per point) per $1 spent on travel and dining. And Chase Ultimate Rewards points can be extremely valuable if you know how to use them!
3. Do the Math
Let’s say Natalie spends $10,000 per year on a card. If $6,000 of her purchases are on dining & travel (60% of her total spending) and $4,000 is non-bonus spending, then she’ll earn:
- 16,000 Chase Ultimate Rewards points with the Chase Sapphire Preferred ($6,000 X 2X points on travel and dining + $4,000 X 1 point on everything else), OR
- 20,000 miles with the Capital One Venture card ($10,000 X 2X miles on all spending)
That would give her $200 in travel with Chase Sapphire Preferred (16,000 Chase Ultimate Rewards points X 1.25 cents per point) or $200 in travel with the Capital One Venture card (20,000 miles X 1 cent per mile).
So if more than 60% of her purchases are on dining and travel, then the Chase Sapphire Preferred is the better choice.
4. Transfer Rewards to Airline and Hotel Partners
So Natalie can get much more than 2 cents per point if she redeems points award travel, like Business Class flights to Europe on United Airlines, flights on Southwest when you have the Companion Pass, or stays at top Hyatt hotels with the Chase Sapphire Preferred. Chase Ultimate Rewards points transfer to every partner at a 1:1 ratio.
Contrast that with the Capital One Venture, which has a transfer ratio of 2:1.5, so you’ll get 1.5 airline miles for every 2 Venture miles you transfer (the exceptions are Emirates and Singapore Airlines, which have a 2:1 transfer ratio).
Again, if you spend more on travel and dining, the Chase Sapphire Preferred is a better choice.
5. Redeeming Your Rewards for Cash Back
You can also redeem the rewards you earn on the Capital One Venture and Chase Sapphire Preferred for cash back. This gives you the ultimate flexibility because you can use your miles & points any way you want!
But you’ll get twice as much cash back when using the Chase Sapphire Preferred to earn 2X points on dining and travel. Because in those categories you earn 2% cash back instead of 1% with the Venture card (2 Chase Ultimate Rewards points X $1 spent on dining & travel X 1 cent per point).
So Which Card Is Better?
If you do a great deal of spending on travel and dining, then the Chase Sapphire Preferred card wins.
And for folks looking for award travel, the Chase Sapphire Preferred card is the better choice. Because you can transfer points to partners, like Hyatt and United Airlines to book award travel and get more than 2 cents per point!
But if you prefer a very simple rewards system where you book travel with your card and redeem miles for those purchases later, the Capital One Venture card is a better option. Plus, you can still transfer your points to airline partners if you decide to explore that option.
If you’re interested in cash back, both cards are more or less equal. Again, unless you do a lot of travel and dining spend.
With the Capital One Venture card, you earn 2 Venture miles per $1 on all purchases. Then, you can redeem miles to offset your travel purchases. Your miles are worth 1 cent each and you don’t have to worry about blackout dates and you’ll earn miles and points for your trip.
The Chase Sapphire Preferred is a great option for folks looking to get the most award travel for their spending. Because you can transfer the flexible points you earn to airline and hotel partners for luxury travel, like Business Class award flights to Europe or amazing hotel stays!