Capital One first added switch companions to a few of its high bank cards in 2018 — and issues have solely gotten higher since then. With an array of latest companions, enhanced switch ratios and the launch of the Capital One Enterprise X Rewards Credit score Card in 2021, Capital One has considerably boosted the pliability of its rewards program.
Nevertheless, understanding whether or not it is higher to switch your Capital One miles or redeem them for a set worth could be complicated.
On this submit, we’ll define the benefits and drawbacks of every choice and supply particular examples that will help you resolve which selection is right to your award journey objectives.
Eligible Capital One playing cards
These are the Capital One playing cards which are eligible for transfers to this system’s airline and lodge companions:
*The data for the Capital One Spark Miles Choose has been collected independently by The Factors Man. The cardboard particulars on this web page haven’t been reviewed or supplied by the cardboard issuer.
Luckily, Capital One has a helpful software to point out you what number of miles you’ll obtain earlier than making a switch.
Associated: Why transferable factors and miles are value greater than different rewards
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Redeeming miles for assertion credit
Observe which you could additionally use your miles straight for bookings via Capital One Journey. Nevertheless, we strongly suggest paying for these purchases along with your eligible Capital One card (which can earn you bonus rewards) or reserving straight with a journey supplier after which utilizing your miles to cowl the acquisition. This may basically provide you with a 5% or 10% rebate in your miles.
The professionals
- It is easy: Journey assertion credit supply the pliability to make reservations in varied methods, resembling reserving straight with the supplier, utilizing on-line journey companies or working with conventional journey brokers. If the acquisition falls underneath the desired service provider classes, you should utilize your Capital One miles to offset these transactions. There are not any award charts, blackout dates, capability controls or extra taxes and charges to fret about.
- You will have flexibility: You may redeem miles for impartial accommodations and flights on any airline, liberating you from relying solely on main airways and chain accommodations. Plus, Capital One’s definition of journey consists of purchases for taxis, bus fares and rail traces, increasing your choices for utilizing your miles.
- Awards are handled like common purchases: Since you may pay for the acquisition along with your card first after which redeem miles for a press release credit score, you may nonetheless earn lodge factors, airline miles and credit towards elite standing.
The cons
- It offers you restricted worth: The disadvantage of utilizing Capital One miles for journey assertion credit is that you will at all times obtain a set worth of 1 cent per mile. Because you’re incomes not less than 2 miles per greenback spent on all purchases, that is a strong return of two% — however you will not discover any distinctive awards that supply a better worth.
Associated: How bank card issuers outline journey and eating purchases
Transferring miles to journey companions
Capital One lets you switch your bank card rewards on to airline and lodge companions, just like different main card issuers. This is not out there for all Capital One playing cards however lets you get significantly extra worth out of your miles.
Capital One now presents greater than 15 airline and lodge companions. Switch ratios range, however most are 1:1, that means 1,000 Capital One miles provides you with 1,000 factors or miles within the different program. Switch occasions range as nicely. Take a look at our submit on transferring Capital One miles to companions for full particulars on this course of.
The professionals
- Your miles can go additional: You may usually save miles by transferring them to companions and reserving award journey in comparison with redeeming them at a worth of 1 cent every. Plus, Capital One sometimes runs switch bonuses that permit you to stretch your miles even additional.
- You may probably get glorious worth: Award journey fans know there are some nice candy spots on the market. For instance, for those who switch Capital One miles to Avianca LifeMiles and redeem them for a Lufthansa first-class award (with out gasoline surcharges), you will get distinctive worth to your Capital One miles.
- You may mix miles with current balances: Capital One miles could be extraordinarily helpful for topping off your frequent flyer account balances. As an illustration, in case you have credited a flight to Aeroplan however lack sufficient miles for an award, you’ll be able to switch some Capital One miles to Air Canada to make up the distinction and guide the ticket.
The cons
- Selecting a switch accomplice and reserving awards could be complicated: Reserving award journey requires understanding completely different frequent flyer applications and realizing the right way to seek for the very best awards. It may be value it — once you fly in business- or first-class seats that you just in any other case could not afford, you may be glad you bought into factors and miles. Nevertheless, gaining this data requires important effort and is extra advanced than merely redeeming miles for assertion credit.
- You may must pay taxes and charges: These range from a couple of {dollars} to a number of hundred, relying on the airline and lodge, and they need to be factored into your journey funds. You can additionally pay for them along with your Capital One card and redeem miles to cowl them.
- You will not earn factors, miles or elite standing: Frequent flyer applications usually do not permit you to earn factors, miles or elite standing on flights booked with factors or miles (although there are exceptions). With most lodge rewards applications, you may earn elite qualifying nights however not lodge factors on award stays. If the award you are curious about prices an identical variety of Capital One miles, it is advisable to pay along with your bank card and use your miles to erase the price relatively than transferring them. This method lets you earn factors or miles on the flight or keep, obtain credit score towards elite standing and probably qualify for upgrades if you have already got elite standing.
- Transfers might not be prompt: Most transfers occur immediately, however there could also be a delay when transferring Capital One miles to airline or lodge companions, which might lead to a sought-after premium-class award seat getting taken. To mitigate this, contemplate placing your required award ticket on maintain or having a backup plan prepared.
- It could supply inferior worth: You will not at all times get the very best worth by transferring Capital One miles to journey companions. For instance, if a flight requires 50,000 airline miles via one in all Capital One’s companions however solely prices $250, you would cost it to your Capital One card after which use simply 25,000 miles to cowl the acquisition.
That is why it is vital to do your analysis and resolve which is the best choice.
Associated: Why you must add approved customers on the Capital One Enterprise X
Tips on how to resolve for those who ought to switch Capital One miles
The most suitable choice — redeeming miles for assertion credit or transferring them to companions — will range on a case-by-case foundation.
First, discover Capital One’s listing of switch companions to see if any of them meet your wants. For instance, if none of Capital One’s lodge companions have properties in your vacation spot, transferring miles will not aid you.
Then, contemplate the value of an award flight or keep booked straight via the airline or lodge (remember to think about any switch bonuses) and decide what worth you would get out of your miles. If you will get greater than 1 cent per Capital One mile, transferring rewards is often the way in which to go — except incomes airline or lodge elite standing and utilizing elite perks is essential to you.
Bear in mind to contemplate the worth of the lowest-priced flight you would have booked, not simply the present value of the award ticket. As an illustration, for those who might have bought a less expensive flight on a reduction service or saved cash by reserving via one other airline with a Chase Supply, that value ought to be factored into your resolution. The identical goes for any taxes and charges you may must pay for award journey booked via airways and accommodations.
Moreover, examine award charges when reserving flights with carriers which have a number of Capital One switch companions. For instance, you would use both Flying Blue miles or Virgin Pink factors to guide SkyTeam flights, however the price might range. Award charges can also range from one date to a different since many airways use dynamic award pricing — in case your dates are versatile, browse completely different dates to search out the very best costs.
If that appears clear as mud, don’t be concerned. We’ll stroll you thru some real-world examples to point out you the right way to put this into follow and resolve one of the simplest ways to redeem your hard-earned Capital One miles.
Actual-world examples of transferring Capital One miles
As an instance you had been taking a look at a round-trip flight from New York’s John F. Kennedy Worldwide Airport (JFK) to Paris-Charles de Gaulle Airport (CDG). Listed below are the principle choices for nonstop financial system flights in August:
- Paid ticket: $646 on Air France (64,600 Capital One miles)
- Award ticket via Air France: 50,000 miles plus about $110 in taxes and charges
- Award ticket via Avianca: 70,000 miles plus about $180 in taxes and charges
- Award ticket via British Airways: 79,500 Avios plus about $200 in taxes and charges
On this case, transferring miles to Air France-KLM Flying Blue is the winner. Even for those who opted to redeem 11,000 Capital One miles to cowl the price of the taxes and charges, you’d nonetheless pay fewer miles in whole than for those who’d paid for the ticket along with your card and redeemed your miles for a press release credit score.
Now, let’s contemplate a one-way flight from Chicago’s O’Hare Worldwide Airport (ORD) to Seattle-Tacoma Worldwide Airport (SEA):
- Paid ticket: $85 on Alaska Airways (8,500 Capital One miles)
- Award ticket via Air Canada: 12,500 miles plus about $33 in taxes and charges
- Award ticket via Avianca: 15,000 miles plus $58 in taxes and charges
For this journey, you are higher off reserving your ticket via Alaska’s web site and redeeming Capital One miles towards a press release credit score. You may save a couple of thousand miles and the price of taxes and charges this manner. Be sure you embody your Alaska Airways Mileage Plan quantity to earn miles and obtain any elite standing advantages, if relevant.
This is an instance of a lodge redemption. In case you’re planning a street journey to the Grand Canyon in September, you would guide a refundable customary room on the Ramada by Wyndham Williams/Grand Canyon Space for the next costs:
- Paid reservation: $142 per evening (14,200 Capital One miles)
- Award reservation via Wyndham: 15,000 factors per evening
On this case, you may come out just a little forward by redeeming your miles for a press release credit score as an alternative of transferring them to Wyndham Rewards.
Alternatively, for those who’re visiting Chicago in September and eyeing the Cambria Resort Chicago Loop — Theatre District, it might make extra sense to switch miles to Alternative Privileges and redeem them straight via the lodge:
- Paid reservation: $325 per evening, together with taxes and charges (32,500 Capital One miles)
- Award reservation via Alternative: 30,000 factors per evening
Associated: Tips on how to redeem Capital One’s 75,000-mile welcome supply for max worth
Backside line
Capital One’s switch companions can supply some implausible worth to clients with playing cards just like the Capital One Enterprise Rewards Credit score Card and the Capital One Spark Miles for Enterprise. Nevertheless, redeeming this manner provides some complexity, and it isn’t at all times essentially the most cost-effective choice. By fastidiously contemplating each choices utilizing the above framework, you’ll be able to decide which is finest to your journey.
If you do not have a Capital One card but, now is a good time to use for the Enterprise Rewards, which has a limited-time welcome supply value over $1,000: Earn 75,000 bonus miles after spending $4,000 on purchases throughout the first three months of account opening, plus a $250 Capital One Journey credit score within the first cardholder 12 months.
