Speaking of CC from the other post, question about Capital One

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1

We got the Capital One before our Italy trip…it was great. Free 40,000 points, no foreign transaction fees. The one we have says 2x miles per each dollar spent. So, does that really mean that for example, I spend $1, 000 in one month, I get 2,000 miles paid of airline travel? Doesn’t seem right. How am I figuring this wrong

2

You are correct, but for spending $1,000, you would get 2,000 “travel rewards points.” I have the same card. You can use the points for flights, rental cars, hotels, etc. You pay for any of these with your card. Search around, find the best deal, then buy it with your card. Then you go into your account online, find the travel related transactions, and use your rewards points to pay for them. If a rental car is $100, you apply 10,000 rewards points to eliminate it from your bill. I really like the flexibility it offers. I am not stuck with one hotel chain or one airline. I find the best deal then use my points to pay for it.

3

It seems you spend $1,000 you get 2,000 points that is equivalent of $20 that can be used for travel expenses. Your 40,000 bonus is equivalent of $400 for travel expenses.

4

I was just researching these cards on line, and @CCDD14 is correct.

5

Thanks…so a point is equal to .01…or 1 cent of value, correct? The ease of redeeming the credit is very easy.

6

Yes. They offer 2% cash back plus $400 sign-on bonus for $59/y fee that starts from second year. Not a cheap way to acquire customers and they still have to pay to all these wild people who run around screaming on TV.

7

I made money on that card because when I cancelled it to avoid the annual fee, they sent me a $500 check as my balance on the bonus points I got for getting it. It was a total surprise. If they had just said they would waive the fee, I would have kept the card.

8

I like getting the 2% cash back and figure it’s easier for me to just have the cash that I use for whatever I want and don’t have to figure out how to redeem it. Since I get hundreds and sometimes thousands back every year, I am not deterred by the $59 annual fee.