2021.5 Update: Capital One improved the earning structure, you can now earn:
- 4% cashback on dining, entertainment, and streaming;
- 3% cashback on grocery.
Previously it was only 2% on grocery and no bonus points for streaming. This is a nice improvement, and don’t forget Capital One improved its Miles system a lot in 2021.
2019.5 Update: The $500 offer is expired. The offer is only $300 now.
- $300 offer: earn $300 sign-up bonus after spending $3,000 in the first 3 months. The recent best offer is $500.
- 4% cashback on dining, entertainment, and streaming; earn 3% cashback on grocery stores; and 1% cashback on all other purchases.
- If you have a Capital One Miles earning card (such as Capital One Venture), then you can transfer your cashback to Miles and improve its potential value.
- No foreign transaction fee.
- $95 annual fee, waived for the first year.
- Capital One will pull all three major credit bureaus (Experian, TransUnion, Equifax) for one credit card application!
Introduction to Capital One (C1) Miles
- You can earn C1 Miles with two kinds of cards: Miles earning cards, or cashback earninng cards. Miles earning cards mainly include: Capital One Venture, Capital One VentureOne, Capital One Spark Miles (Business Card). Cashback earning cards mainly include: Capital One Savor, Capital One SavorOne, Capital One Quicksilver, Capital One Spark Cash (Business Card) etc.
- You can move your C1 Miles from one Miles earning card to another Miles earning card at any time, and you can also move your cashback from a cashback earning card to a Miles earning card at any time. However, you can not move your Miles from a Miles earning card to a cashback earning card, therefore cashback is more flexible than Miles in C1’s system.
- C1 Miles never expire. You will lose the C1 Miles on one card if you close the account, but you can prevent losing your C1 Miles by moving the points to another C1 card beforehand.
- If you have a Miles earning card, C1 Miles can be transferred to some airline miles and hotel points. The ratios are 1:1, 2:1.5, or 2:1, and of course we only recommend transfering to those 1:1 partners. Some good 1:1 options are: Avianca (AV) (Star Alliance), Asia Miles (CX) (Oneworld), and Wyndham hotel points, etc. If you use C1 Miles in this way, the value is about 1.6 cents/point.
- You can redeem your C1 Miles towards travel expense at a fixed ratio 1.0 cent/point. You can also redeem your C1 Miles towards some merchants gift cards at a fixed raiot 1.0 cent/point.
- You can redeem your C1 Miles towards statement credit at a fixed ratio 0.5 cents/point.
- In summary, we estimate that C1 Miles are worth about 1.6 cents/point.
Recommended Application Time
- We recommend you apply for this card after you have a credit history of at least two years and you are very comfortable with the credit card game.
- [1/6 rule] You can only apply for 1 Capital One credit card for every 6 months, including both personal and business credit cards. You will get automatic denial if you violate this rule, but there will be no hard pull.
The signup bonus is quite good when it is $500. Apart from that, the major point of this card is 4% cashback on dining and 3% cashback on grocery. Note that the cashback value can be improved if you have the Venture card. If you don’t eat a lot, you can also consider downgrading it to the SavorOne card after the first year. Note that Capital One will pull all three major credit bureaus (Experian, TransUnion, Equifax) for one credit card application, and it is very difficult to get approved if you have a lot of recent hard pulls.
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