Capital One vs. Chase: Which bank offers superior credit cards?

In the realm of travel credit cards, the choices can feel endless. You have the potential to earn cash back, miles, points, and even luxurious benefits like access to airport lounges or a fast track to elite status. Additionally, each new card can influence your eligibility for future cards and bonuses, so it's crucial to choose wisely.

Among the top contenders are Capital One and Chase. Both banks offer a range of rewards credit cards.

In the sections below, we will explore the specifics to identify which cards excel in various categories.

Comparison of Capital One and Chase cards

The information for the Capital One Spark Miles Select for Business has been independently gathered by Dinogo. The details provided on this page have not been verified or supplied by the card issuer.

Earning rewards: Chase vs. Capital One

All Capital One miles-earning cards provide 1.5 to 2 miles per dollar on every purchase, plus specific bonus categories such as hotels and rental cars booked through Capital One Travel.

With Chase, your rewards depend on the card you choose. For instance, both the Sapphire Preferred and Sapphire Reserve offer bonus points on travel and dining. Conversely, the Ink Business Preferred Credit Card provides 3 points per dollar on the first $150,000 in combined purchases in these categories each account anniversary year:

• Travel
• Shipping
• Telecommunications, including internet, cable, and phone services
• Advertising expenses incurred on social media platforms and search engines

All regular purchases with these Chase cards earn just 1 point per dollar. However, by pairing your premium card with the no-annual-fee Chase Freedom Unlimited or Chase Freedom Flex, you can unlock additional bonus categories.

Thanks to the straightforward earning of unlimited double miles everywhere with the Capital One Venture Rewards and Capital One Spark Miles, it's generally easier to accumulate Capital One miles unless you frequently spend in Chase's bonus categories.

With the right card pairing, you can convert your Capital One cash-back rewards into transferable miles, enhancing their value.

Winner: It's a Tie. Both issuers provide valuable earning rates depending on the specific card you choose.

How to redeem rewards with Chase and Capital One

As per TPG's September 2024 valuations, Capital One miles hold a value of 1.85 cents each, while Chase points are valued at 2.05 cents each. This valuation is based on the typical value expected when transferring to travel partners.

Additionally, you can utilize your rewards as fixed-value points to offset travel expenses or pay for trips. Capital One miles can be used to cover eligible travel expenses at a rate of 1 cent per mile, whereas Ultimate Rewards points can exceed that value in several ways.

Initially, Chase points can be redeemed at a rate of 1 cent each for cash back or used to settle travel costs booked via Chase Travel℠. When using points for travel booked through the Chase portal, they are valued at 1.25 cents each with the Sapphire Preferred or Ink Business Preferred Credit Card. With the Chase Sapphire Reserve, this value increases to 1.5 cents per point.

Winner: Chase Ultimate Rewards takes the crown for reward redemption due to its superior transfer ratios and more rewarding travel partners.

Comparing reward transfers between Chase and Capital One

Maximizing the value of credit card rewards hinges on flexibility. Transferable points and miles are invaluable, and both Capital One and Chase offer cards that earn these rewards.

You can earn transferable miles with the following Capital One cards:

• Capital One Spark Miles for Business
• Capital One Spark Miles Select for Business
• Capital One Venture Rewards Credit Card
• Capital One Venture X Rewards Credit Card
• Capital One Venture X Business
• Capital One VentureOne Rewards Credit Card

The information regarding the Capital One Spark Miles Select for Business has been independently gathered by Dinogo. The card details presented here have not been evaluated or supplied by the card issuer.

You can also earn transferable Chase Ultimate Rewards points with these Chase cards:

• Chase Sapphire Reserve
• Chase Sapphire Preferred Card
• Ink Business Preferred Credit Card

Travel partners: Capital One miles can be transferred to over 15 airline and hotel partners, while Chase Ultimate Rewards points also transfer to 15 different programs. However, the sheer number of partners doesn't reveal the full picture.

It's essential to evaluate the effectiveness of the partner loyalty programs. Capital One offers valuable partners like Air Canada's Aeroplan, Avianca LifeMiles, Singapore Airlines KrisFlyer, and Air France-KLM's Flying Blue.

Chase points can be transferred to Singapore Airlines and Flying Blue as well, in addition to other top-tier partners like Virgin Atlantic (ideal for ANA and Delta awards, despite a recent slight devaluation for Delta awards), United Airlines (for Star Alliance awards), and Hyatt (fantastic for luxury stays).

Winner: Chase. Overall, its points hold greater value due to superior transfer options.

Who should consider getting a Capital One card?

Many Capital One card offerings are ideal for those who value simplicity. For instance, two standout options, the Venture Rewards card and the Spark Miles for Business card, each carry a $95 annual fee (waived for the first year with Spark Miles) and reward users with 2 miles per dollar spent (refer to rates and fees for both cards).

If you prefer not to manage multiple cards to optimize bonus categories, either of these options is a fantastic way to enhance your spending. Additionally, the rewards are straightforward to redeem, saving you time and effort in maximizing your miles' value.

Who should consider a Chase card?

To qualify for any Chase card, you must adhere to the Chase 5/24 rule, which means you should have applied for five or fewer cards from any issuer in the last 24 months. If you meet this criteria, it's a great time to dive into the realm of points and miles with a Chase credit card.

Many of the top airline credit cards, leading hotel cards, and most valuable general travel cards are offered by Chase. Therefore, it's wise to acquire them before being affected by the 5/24 rule.

Should I apply for cards from both banks?

While there are some stringent application restrictions for Capital One and Chase cards, it is indeed possible to hold cards from both issuers. Aside from the aforementioned 5/24 rule, there's no reason to avoid opening accounts with both Chase and Capital One.

One of the restrictions is that Capital One allows you to be approved for only one of their cards every six months.

With Chase, you cannot hold both Sapphire cards at the same time. Additionally, if you've received a welcome bonus on a Sapphire card in the past 48 months, you won't be eligible to open another Sapphire card.

Conclusion

When it comes to earning credit card rewards, two of the leading issuers are Capital One and Chase. You can easily find a card that meets your needs from either bank. Chase offers cards that earn highly valuable Chase Ultimate Rewards points, which can be transferred to beneficial hotel and airline loyalty programs. On the other hand, Capital One features a range of cards that offer 2 miles per dollar or 2% cash back on every purchase, making it a straightforward option.

The best card for you largely depends on your travel objectives and what you hope to achieve with the card. Generally, Chase offers more rewarding choices, but if you're looking for cash back, you'll want to explore Capital One's offerings.