We're going to compare the capital one venture card with the venture one card.
As a starting point, I typically recommend chase 5:24 cards whenever I do consultations on our site, and the main reason is that once you kind of go past 5:24 you're not going to be eligible for certain cards. I do realize though that some people can't get approved for Tazed cards or maybe they just don't like chase or maybe you are already over five twenty-four.
So you're looking at different options, another really good reason is if you spend a lot on hotels common given the 10x back perk right now, whether it makes sense to get the venture card or the venture one card is a pretty commonly asked question.
Looking at the math behind a decision
So I figured I'd just do a post on it, looking at the math behind a decision for this post, and most of our other math posts I recommend following along with the spreadsheet just because you're going to get significantly more value.
So if you do want to make a copy of this all you need to do is to go to the blog post down below, it should be the first link in the description box, go to the Google sheets and then either make a copy of or download as.
Please don't request access to the sheet just because if I grant it to you, if you make any changes then it kind of ruins it for everyone else. The main benefit of this sheet is that it makes your decisions a lot easier, so all you need to do is to change these yellow cells, and that's it.
I would advise against changing the other cells though since most of them are formulas, and again you don't really want to mess up your numbers.
The difference annual fee between the two cards
The first thing we need to look at is the annual fee. For the venture, one card is zero and for the venture card it's ninety-five dollars, but it's waived in the first year.
The next thing and this is the first one where you need to make a decision is how you want to use the mouse that you earn, so whether you want to use them towards travel or towards cash back. For most people reading this post, I'm guessing you're using it towards travel, so I pre-selected it, but again feel free to change it.
If you want to see what happens next we have the signup bonus with the venture card, you're going to get fifty thousand points after three thousand dollars of minimum spend with the venture one card, twenty thousand points after one thousand dollars of minimum spend, assuming you paid cash back.
This means with the venture card the signup bonuses were five hundred dollars in the venture one card, it's worth two hundred dollars.
I realize that some people are probably going to stop right here to apply for the cards, just because of the numbers kind of speak for themselves.
If you do fall into this camp, assuming that you can hit the minimum spend, you're getting three hundred dollars more in value which to me feels like a no-brainer, so there are some long-term consequences and again we're going to keep talking about that.
The amount of money that spend and the value that gets
The next thing we're going to look at is the amount of money that you're going to spend on the cards and again the value that you're getting with both the venture card and the venture one.
You're getting 10x back at hotels.com over the venture card, you're getting 2x back everywhere else with the venture one card, 1.25 X everywhere else. For this section all you really need to do is to enter the number of spends that you're going to do in these categories, so hotels.com as well as everywhere else.
The rest of the numbers here are just to illustrate some values, but again you're going to see the value that you're getting at the bottom of the sheet, assuming that you spend three thousand dollars for each of these categories, you can kind of see the numbers you get.
With the venture card you're getting 42,000 miles of their furniture, one card you're getting about thirty-eight thousand miles, and you're one we have a pretty easy decision just because of the signup bonus but a year.
To this kind of changes depending on how much money you're looking to spend, so based off our calculations in year one, with a venture card you're getting nine hundred and twenty dollars in value for the venture one card, you're getting five hundred and seventy-five dollars substantially less.
If you're too, though if you have the same exact spend or the venture card you're only getting three hundred and twenty-five dollars, and with a venture one you're getting fifty dollars more in value.
Getting a higher signup bonus and earning rate
Given all of this and again your numbers are going to vary, the main takeaway is that for year one, assuming that you can hit the minimum spends, your optimal strategy is to get the venture card, the main reason is because you're getting a higher signup bonus and again you're getting a higher earning rate.
And you do not need to pay an annual fee in the first year, just because it's waived and it really depends on how much money you spend.
For most people, I think it makes sense to downgrade to the venture one card just because they're probably not spending enough money in order for the venture card. To stand out again, in our example, you're technically losing $50 in value by picking the venture card.
If you are curious at what points it makes sense to take the venture card over the venture one card and year two and onwards, we can basically do a break-even analysis.
Again looking at the numbers, once we solve for X, we have twelve thousand six hundred and sixty-seven dollars, this means that if you spend more than this amounts it makes sense to get the venture card. If you spend less then you should get the venture one card. In case you're wondering the hotels.com benefit doesn't really affect this, and again we could see this by playing around with a few numbers.
We can allocate the numbers differently, but if you spend exactly the break-even point, it doesn't matter you still get the same results again.
One of the main reasons why I wanted to make this post is just because it's come up a lot during the consultations I've been doing. So I figured I'd do a post to share.
Other web page resource
Capital One Venture Rewards Card vs VentureOne Card: https://www.get.com