Capital One Venture Rewards Card vs. Bank of America Premium Rewards Credit Card
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If you want to earn credit card rewards but don’t want to keep track of multiple cards and categories, you might want to think about adding either the Capital One Venture Rewards Credit Card or the Bank of America® Premium Rewards® credit card to your wallet. The first offers miles and the second offers points, but both can help you earn and redeem rewards for travel.
First, let’s compare the two at a glance. Then we’ll dive into the specifics of each card to help you evaluate which is better for your needs and spending patterns.
Comparing the Capital One Venture Rewards Credit Card vs. Bank of America® Premium Rewards® credit card
Both cards charge annual fees and offer similar sign-up bonuses. Neither card charges a foreign transaction fee, which is good if you plan to use your card abroad.
|Capital One Venture Rewards Credit Card vs. Bank of America® Premium Rewards® credit card|
|Capital One Venture Rewards Credit Card||Bank of America® Premium Rewards® credit card|
|Regular purchase APR||17.24% - 24.49% (Variable)||15.99% - 22.99% variable|
|Rewards||2 Miles per dollar on every purchase, every day.||2 points for every $1 spent on travel and dining purchases, 1.5 points per $1 spent on all other purchases|
|Sign-up bonus||Enjoy a one-time bonus of 60,000 miles once you spend $3,000 on purchases within 3 months from account opening, equal to $600 in travel.||50,000 online bonus points – a $500 value – after you make at least $3,000 in purchases in the first 90 days of account opening.|
|Foreign transaction fee||0%||None|
Let’s take a look at both cards individually to weigh the pros and cons of each.
pros and cons
Unlimited rewards. 2 Miles per dollar on every purchase, every day.
Sign-up bonus. Enjoy a one-time bonus of 60,000 miles once you spend $3,000 on purchases within 3 months from account opening, equal to $600 in travel.
No foreign transaction fee. When traveling abroad, you can use this card without worrying about a foreign transaction fee. There is 0%.
Purchase Eraser. Use this card to book travel via whatever travel website, travel agent or other travel resource you like. Then, go to capitalone.com or call the Capital One Reward Center and redeem your miles for an account credit against the cost of your purchase.
Credit for Global Entry or TSA PreCheck. Use your Capital One Venture Rewards Credit Card to cover the application fee for Global Entry or TSA PreCheck for a credit of up to $100. You can get this credit once every four years, as long as your account is in good standing.
Transfer your miles. Capital One allows miles earned on the Capital One Venture Rewards Credit Card to be transferred to 15 partner airlines for more flexibility.
Annual fee. The Capital One Venture Rewards Credit Card charges an annual fee of $95.
Limited travel benefits. The Capital One Venture Rewards Credit Card offers travel accident insurance, 24-hour travel assistance services, and auto rental collision damage waiver. However, it’s lacking perks like trip delay reimbursement and baggage delay coverage.
Bank of America® Premium Rewards® credit card pros and cons
Unlimited rewards. 2 points for every $1 spent on travel and dining purchases, 1.5 points per $1 spent on all other purchases.
Broad definition of “travel.” Here’s how the card’s terms and conditions explain what’s eligible for the travel rewards rate:
“Travel includes: airlines, hotels, motels, timeshares, trailer parks, motor home and recreational vehicle rentals, campgrounds, car rental agencies, truck and trailer rental, cruise lines, travel agencies, tour operators and real estate agents, operators of passenger trains, buses, taxis, limousines, ferries, boat rentals, parking lots and garages, tolls and bridge fees, tourist attractions and exhibits like art galleries, amusement parks, carnivals, circuses, aquariums, zoos and the like. Purchases from some merchants that provide travel-related goods and services will not be eligible, like in-flight goods and services, and duty-free airport purchases.”
Sign-up bonus. 50,000 online bonus points – a $500 value – after you make at least $3,000 in purchases in the first 90 days of account opening.
No foreign transaction fee. When traveling outside the United States, you can use this card and not have to fret about a foreign transaction fee. There is None.
Up to $200 in travel statement credit rewards. You can get an airline incidental statement credit of up to $100 for qualifying purchases such as seat upgrades, baggage fees, in-flight services, and airline lounge fees. In addition, you can get a statement of up to $100 every four years to go toward an application fee for Global Entry or TSA Precheck.
Preferred Rewards. If you’re a Bank of America Preferred Rewards member, you can get 25% to 75% more points on every purchase. This program has three tiers based on how much you have in qualifying combined balances in your Bank of America banking and/or Merrill investment accounts.
With the maximum level bonus (Platinum Honors), when using the Bank of America® Premium Rewards® credit card you can earn up to 3.5 points for every $1 on travel and dining purchases and up to 2.625 points for every $1 on other purchases.
However, this program might be out of reach for some cardholders. The lowest tier (Gold) requires a minimum of $20,000 in qualifying balances.
Travel benefits. If you’re a frequent traveler, these perks are likely to come in handy:
- Trip delay reimbursement
- Trip cancellation/interruption reimbursement
- Baggage delay reimbursement
- Lost luggage reimbursement
- Travel and emergency assistance services
- Emergency evacuation and transportation coverage
- Auto rental collision damage waiver
- Roadside dispatch program
- Access to the Visa Signature Luxury Hotel Collection
- Concierge Service
Annual fee. The Bank of America® Premium Rewards® credit card comes with a $95 annual fee.
Can’t transfer points. There’s no option with the Bank of America® Premium Rewards® credit card to transfer rewards points to airline or hotel loyalty programs.
Should you have both credit cards?
Probably not. Having to recoup the $95 annual fee on the Capital One Venture Rewards Credit Card plus the $95 annual fee on the Bank of America® Premium Rewards® credit card means you’re likely to end up with fewer net rewards on either card than if you just focused on using one.
The bottom line
If you like a flat rate reward amount on every $1 spent, the Capital One Venture Rewards Credit Card could be what you’re looking for. With the Bank of America® Premium Rewards® credit card, you get a higher rewards rate for travel and dining purchases, and a lower rewards rate for everything else.
The Capital One Venture Rewards Credit Card is also a good option if you like the Purchase Eraser feature. Being able to book travel anywhere and then submit it for an account credit can make booking your trip a more convenient experience. However, know that rewards earned with the Bank of America® Premium Rewards® credit card can also be redeemed for statement credit.
That said, the perks that come with the Bank of America® Premium Rewards® credit card make it a better overall card for someone who travels extensively. Knowing that Bank of America has your back if your trip gets delayed or your luggage gets lost can give you some peace of mind as you travel. Plus, the wide range of things considered that fall under the travel category when using this card gives you an opportunity to earn more points on more of your spending.
In addition, the chance to increase the points you earn when using the Bank of America® Premium Rewards® credit card via the Preferred Rewards program gives this card extra value.