Credit Cards

This new travel credit card will save me over $1,700 in 2022

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Capital One’s latest travel rewards card is my new favorite credit card, and I got it as soon as I could.

Key points

  • The Capital One Venture X Rewards credit card launched in late 2021.
  • After using your welcome bonus, travel credits and other benefits, I’ll save $1,705.

It’s not often that a new credit card really surprises me. Since I see so many of them, I’m used to all the typical perks by now. The Capital One Venture X Rewards Credit Card is the exception to the rule.

Capital One launched this travel card in November 2021 and it exceeded all my expectations. I got the card shortly after it launched and it will save me over $1,700 in 2022. Here’s how.

Breakdown of how much you can save with Capital One Venture X

Before we get into what the Capital One Venture X Rewards credit card has to offer, we’ll start with how much it costs. The annual fee is $395. That may sound expensive, but it’s actually quite easy to get over $395 worth of this card each year.

To get a full picture of how much you can save in a year, I’ll go over its best features and the value of each.

100,000 bonus miles

The most valuable benefit of this card is its registration bonus. New cardholders earn 100,000 bonus miles after spending $10,000 on purchases in the first six months.

Capital One Venture miles can be redeemed for any travel purchase you make at a rate of $0.01 per mile. So if you use them that way, they can cover $1,000 in travel expenses. You also have the option to transfer miles to Capital One travel partners.

$300 annual travel credit

This is a big part of why that $395 annual fee isn’t as expensive as it sounds. Each year, you’ll receive up to $300 in statement credits on bookings made through Capital One Travel.

Capital One Travel offers flight, hotel and car rental reservations. After a relaunch in 2021, the travel portal has a sleek and intuitive design. Their results are usually comparable to those of the other major travel booking portals, so you shouldn’t have a problem using the $300 in annual credits on this card.

$200 Vacation Rental Credit

As a limited-time offer, you get up to $200 in vacation rental statement credits charged to your card in the first year. Eligible vacation rental platforms include Airbnb, VRBO, Turnkey, and Vacasa. This is another credit that will not be difficult for frequent travelers to use.

Global Entry/TSA PreCheck Credit

With this Capital One card, you get a membership fee credit of up to $100 for Global Entry or $85 for TSA PreCheck every four years. These are two popular trusted traveler programs that help you get through airport security faster.

Choosing between Global Entry and TSA PreCheck is not a difficult decision. Global Entry also gives you a TSA PreCheck membership, making it the clear choice.

Access to the airport lounge

As a cardholder, you can sign up for Priority Pass and get unlimited access to their lounge program, which offers more than 1,300 airport lounges. If you bought this on your own, a Priority Pass membership with unlimited room access currently costs $429 per year.

You also get access to Capital One Lounges. There’s only one open right now, but Capital One has two more set to launch in 2022.

2x to 10x miles on purchases

When you book through Capital One Travel, this card earns 10 miles per $1 spent on hotels and rental cars and 5 miles per $1 spent on flights. Other eligible purchases earn 2 miles for every $1.

Remember that miles are worth $0.01 each to travel. That means you’re earning at least 2% back on purchases, plus 5% to 10% back through Capital One Travel. High fares like that are a great way to earn more travel rewards in 2022.

10,000 anniversary bonus miles

Every account year you have this card, Capital One will give you 10,000 bonus miles. That’s a $100 value. Combined with that $300 travel credit, you can save at least $400 a year on those two benefits alone, which is already enough to cover the annual fee.

adding it

Now, I will calculate how much this travel credit card will save me in the first year. I’m only going to include benefits that are easy to convert to cash savings on travel purchases, which means I’m leaving out airport lounge access. Since the 10,000 anniversary miles don’t kick in until the first year of your account ends, I’ll leave those out as well.

The Capital One Venture X Rewards Credit Card will save me:

  • $1,000 on travel courtesy of the 100,000 mile sign-up bonus
  • $300 in Capital One Travel bookings
  • $200 in vacation rental reservations
  • $100 on a Global Entry membership
  • $500 in travel miles that I will earn with my expenses

For the latter, I went with a conservative estimate of $25,000 in card spending this year and a rewards rate of 2 miles for $1 on everything. That would earn me 50,000 miles, worth $500 to travel.

That’s a total of $2,100, and after subtracting the annual fee of $395, I get $1,705 value of this Capital One card.

Should I apply for Capital One Venture X?

The Capital One Venture X Rewards Credit Card is the card I now recommend to almost anyone interested in opening a travel card.

While many of the best credit cards are getting more expensive, this Capital One card is cheaper than other premium cards. It also pays for itself with some easy-to-use perks. For travel enthusiasts, it’s definitely worth checking out.

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