Any time I write about cash back credit cards, I get more or less the same response: “Why aren’t you including the Capital One Venture Card?” For those who are unfamiliar with the card, it earns 2 miles per $1 spent on all purchases. Rewards are worth 1 cent each and can be redeemed as statement credits. And Jennifer Garner approves, so what do I have against the Capital One Venture Card? Several things.
For starters, when you apply for the Capital One Venture card, you’re hit with three credit pulls. That’s right, for a ~$400 sign-up bonus, Capital One pulls your credit from Experian, TransUnion, and Equifax. I would understand if, say, Chase pulled from three credit bureaus for a 100,000 point Sapphire Reserve offer. But this is a 2% cash back card with a relatively small sign-up bonus. There’s no good reason for Capital One to be pulling your credit three times for a card this average.
Three credit pulls may not seem like a lot, but why waste it on one credit card? To me, those two additional credit pulls could equal at least 100,000 extra miles and points. I see no good reason to waste three credit pulls on the Capital One Venture card, especially since there’s nothing special about it. There are at least five credit cards out there that are identical to the Capital One Venture Card: The Citi Double Cash Card, for one. Another great alternative? The Fidelity Rewards Visa is pretty much the same, except rewards are deposited into your Fidelity Brokerage Account.
Other great alternatives to the Capital One Venture Card that will only cost you one credit pull include the Discover It Miles Card, Amex SimplyCash Plus Business Card, and Chase Freedom Unlimited. The Discover It Miles card earns 3% cash back during the first year and offers $30 in free wifi credits. The SimplyCash Plus Business Credit Card earns 5% cash back at office supply stores, plus 3% at popular merchant categories, including gas stations, restaurants, and travel. Yes, bonuses are limited to the first $50,000 spent, but it’s still an ideal card for manufactured spending. All of these cards have no annual fee and generous perks, all for just one credit pull per application. That gives all of them a huge advantage over the Capital One Venture Card.
While some of the above mentioned cards lack sign-up bonuses (or offer low ones, compared to the Capital One Venture Card), they make up for it with category bonuses. Did I mention how I earned over $3,000 worth of cash back with the Discover It Miles Card? My point is that while the Venture Card may have a higher sign-up bonus, it’s not worth three credit pulls. There are plenty of other credit cards that provide value beyond a sign-up bonus and 2% cash back.
But I want to hear your thoughts about the Capital One Venture Card: Are you a fan? Why or why not?
Subscribe to Blog via Email