Looking for a credit card for kids?     Capital One has a new option worth considering.

  The card_name  card   is a loyalty card that offers attractive welcome bonus offers, steady rewards for everyday business spending and attractive travel benefits. 

This card’s rewards program is tied closely with the Capital One Venture X credit card. Financial expert Clark Howard considers it the best travel rewards card and one you should always carry in your wallet.

If you run a small business, you may wonder if this version of a credit card fits your budget.

In this article, we’ll cover the basics of this type of card and five things you should consider before applying.

This article was written in   September 2023 and will be republished every 12 months, with detailed notes on all updates. 

Capital One Venture X Business: The Basics

Annual fee:    $395  Rewards program:   Earn 2 miles per dollar spent on purchases, 5 miles per dollar spent on flights and vacation rentals through Capital One Travel, and 10 miles per dollar spent on hotels and car rentals through Capital One Travel. 
 

Bonus benefits:    Earn 150,000 bonus miles after you spend $30,000 in the first three months after opening your account.
Biggest perk:    Earn 10,000 bonus miles each year after your account anniversary. Plus,   get a $300 annual credit for
bookings made through Capital One Travel.   Plus, get up to a $120 credit for Global Entry or TSA PreCheck®. Enjoy complimentary access to more than 1,300 airport lounges worldwide, including Capital One Lounges and Priority Pass membership

Five things to know about Capital One Venture X

Here are five things to consider before applying for this credit card.

1. The annual fee is quite high, but the following two benefits almost make up for it.

Like Clark’s favorite Capital One Venture X travel card, the card_name has an annual fee of $395.

This may seem like a steep price for Clark to pay annually for the privilege of using a rewards credit card, but if you dig deeper, it makes more sense.

First, you can save $300 on your annual fee each year through a statement credit simply by booking travel through the Capital One Travel portal.

In fact, the annual fee is $95 a year.

You’ll also earn 10,000 bonus miles each year after your account anniversary,    just for being an active cardholder.    You can use your bonus miles to cover the remaining annual fee. Plus, you’ll earn a $300 annual credit for bookings made through Capital One Travel.

This gives you time to enjoy the rewards you’ve earned and other valuable benefits, like airport lounge access and up to $120 in TSA PreCheck® or Global Entry credits.

2. No limits on business spending and associated rewards

Many have a long list of monthly expenses to keep their business running smoothly.

So it’s no surprise that small business owners love using credit cards because they can spend without worrying about exceeding their credit limit. Likewise, they want to maximize rewards when they spend.

Capital One does not arbitrarily limit spending or rewards on this credit card.

Unlike personal credit cards, this card doesn’t have a fixed spending limit, and Capital One says your purchasing power changes based on your habits.

And when it comes to rewards for those purchases, Capital One offers 2 “unlimited” airline miles per dollar with no category limits.

You also have the opportunity to earn higher mileage multipliers on hotel and rental card purchases (10 miles per dollar) and flights and vacation rentals (5 miles per dollar) when you book through Capital One Travel.

3. Balance must be paid in full each month.

This card does not have a fixed spending limit, but does have a fixed obligation to pay your bill in full each month.

Capital One calls this a “paid-off” card, so you have to pay the balance in full each month, meaning if you spend $10,000 on business expenses in one billing period, you’ll owe Capital One $10,000 when the bill comes due.

This means you need to be extra careful about maintaining financial discipline and not overspending on your card.

On the plus side, this also means you won’t be paying high interest rates on your balance.

Clark always emphasizes the importance of paying off his rewards credit card balance in full each month, so this fits perfectly with his credit card rules.

4. Get rewarded based on employee spending

If you’re the type of business that requires multiple employees to use a company-issued credit card, this type of card can be a great way to earn lots of rewards miles.

Capital One says you can give employees free credit cards and virtual cards to use, and then you’ll get all the rewards they earn on spending.

Additionally, you can also sync transaction data from these cards with your accounting software.

5. Great Welcome Bonus Offer

At Clark Group, we don’t typically recommend signing up for a credit card just because it has a welcome bonus offer, but you should know that the best credit cards also come with great sign-up bonuses.

Capital One is offering the chance to earn 150,000 bonus miles after you spend $30,000 within the first three months of opening your account    .

This spending requirement is much higher than that on a personal credit card, but people typically spend more each month.