The first question you should ask yourself is: Are the rewards you're earning worth more than the surcharge? If a business charges a 3% credit card fee and your card earns 2% cash back, you're losing money on the transaction.<\/p>\n
For example:<\/p>\n
- \n
- Purchase: $2,000<\/li>\n
- Credit card fee (3%): $60<\/li>\n
- Rewards earned (2% cash back): $40<\/li>\n<\/ul>\n
In this case, you've paid $60 to earn $40 back \u2014 a net loss of $20.<\/p>\n
The same logic applies to points and miles. If you're earning 1 point per dollar, those points would need to be worth more than 3 cents each just to break even on a 3% surcharge. While it's definitely possible to redeem some airline miles for more than that — and some AwardWallet users reliably do<\/a> — I wouldn't count on consistently getting that kind of value.<\/p>\n
Of course, this strategy only works if you pay your statement balance in full. Paying credit card interest will almost always cost far more than the rewards you earn.<\/p>\n
Welcome Bonuses Can Change the Equation<\/span><\/h2>\n
Large expenses can be incredibly valuable if they help you earn a new cardmember bonus. Let's say you're working toward a welcome bonus with a minimum spend of $5,000 in three months. A large tax payment<\/a> or home improvement bill could get you there quickly.<\/p>\n
Imagine paying the following:<\/p>\n
- \n
- A $5,000 bill<\/li>\n
- A 3% surcharge: $150<\/li>\n<\/ul>\n
If earning that bonus gets you 75,000 transferable points<\/a> worth roughly $1,500 in travel, paying a $150 fee suddenly becomes a bargain.<\/p>\n
\n\n\nCapital One Venture Rewards Credit Card<\/div>\n![\"Capital](\"data:image\/gif;base64,R0lGODlhAQABAIAAAAAAAP\/\/\/yH5BAEAAAAALAAAAAABAAEAAAIBRAA7\")
<\/div>\n How to Apply<\/a><\/div>\n<\/div>\nWelcome Offer<\/strong>\r\nEarn 75,000 Miles once you spend $4,000 on purchases within 3 months from account opening. <\/div>\n <\/div>\n\n Capital One Venture Rewards Credit Card<\/strong>\nWelcome Offer<\/strong>\r\nEarn 75,000 Miles once you spend $4,000 on purchases within 3 months from account opening. <\/div>\nAnnual Fee:<\/strong>$95<\/b><\/div>\nShow more<\/a>Why We Like It<\/a>Highlights<\/a>Earning Rates<\/a>Following the revamp of Capital One's rewards program and the addition of airline transfer partners, the Capital One Venture has catapulted into our list of top travel rewards cards. The ability to earn at least 2X miles on every purchase provides a decent return on spending. Plus the card offers some great perks.<\/div>- Earn 75,000 Miles once you spend $4,000 on purchases within the first 3 months of account opening<\/li>\r\n
- 5X miles on hotels, vacation rentals and rental cars booked through Capital One Travel<\/li>\r\n
- 2X miles on all other purchase<\/li>\r\n
- Fee credit for Global Entry or TSA Pre\u2714\u00ae<\/sup> (up to $120)<\/li>\r\n \t
- No foreign transaction fees<\/li>\r\n \t
- $95 annual fee<\/li><\/ul><\/div>
![\"Capital](\"https:\/\/cdn.nextinsure.com\/imaging\/opt\/dfed8cb4-d376-4c8b-aed4-1997afa3d66a.png\")
<\/div>\n