Capital One is one of the big credit card issuers out there, and like many major banks, they have a slew of credit card offerings, and a bunch of different Capital One Rewards catalogs.
Gift Cards Cost More Points In New Capital One Rewards Catalog
It’s important to remember that Capital One gears its various rewards catalogs around either direct Cash Back, or travel rewards. You always get the possible value redeeming for those credit card reward options. That being said, many cards do offer other good rewards that can be useful, and valuable, if you pay attention.
For example, Capital One No Hassle Rewards offers various gift cards at the same redemption rate as travel rewards via the purchase eraser. For example, to erase a $200 hotel stay, costs xx,xxx miles. That’s a rate of one dollar per 100 miles, or a 1:100 ratio. If you want an L.L. Bean gift card, you’ll get the same rate: 10,000 miles gets you a $100 LL Bean gift card.
But, recently, Capital One changed what rate they charge for other gift cards. For example, a $100 Home Depot gift card will end up costing you 12,500 points. That’s a 1:125 ratio, which isn’t as good of deal. You’ll get the same rate for a lot of other popular cards like Amazon gift cards.
How Many Miles You Earn Matters
Do not make the mistake of assuming that the ratio coverts your rewards directly into dollars. In some cases, that won’t be true based on the earning rate.
For example, many Capital One VentureOne cards earn at a rate of 1.25 miles per dollar. So, when you use 12,500 miles to get a $100, that is the equivalent of redeeming $10,000 worth of purchases, not $12,500 worth. Even though the buying rate is higher, the earning rate is still 1.25. Put them together, and with this card you get a 1:100 ratio for these gift cards.
On the other hand, the Capital One Venture Card earns at a rate of 2.0 miles per dollar, or a ratio of 2:1. Using the same 12,500 miles to get a $100 gift card results in having redeemed $6,250 worth of purchases. That turns into a 1:62.5 ratio, which is solid deal.
It’s still not as good of deal as redeeming for travel, but it isn’t a terrible setup either. The equivalent $100 travel redemption would result require just $5,000 in purchases on the Venture Card, which is a very nice ratio of 1:50.
Best Point Redemption for Capital One Miles
As always, the best value for miles redemptions for Capital One Miles is travel, and the worst is in getting cash. Keep an eye on both rewards and earning. Credit card companies change both often. That’s why you are generally better off redeeming often, rather than waiting.