I’m sure that I was not the only person unhappy about the tier reward system implemented by the Capital One Aspire Travel World Elite MasterCard. After years of complaining (including from myself directly to Capital One), our cries have finally been heard!
The Capital One Aspire Travel World Elite MasterCard has changed its reward redemption schedule so that we can redeem a straight 2% for travel expenses. In the past, we had this annoying tier system as follows:
- Up to $150 = 15,000
- $150.01 to $350 = 35,000
- $350.01 to $600 = 60,000
- $600.01 and greater = Travel cost x100
For some reason, the above information is still published on the public website. Hopefully it will be updated soon to reflect the current situation. If you log into your account and click in the rewards section, the wording now says: “Just multiply your transaction amount by 100 to see the number of reward miles needed to redeem. ex. $180 ticket x 100 = 18,000 reward miles needed”. Not only can we redeem our straight 2% on a travel purchase, it seems that we can also redeem partial credits now.
For example, if your flight costed $585 and you only have 24,000 points, you should be able to redeem $240 off the $585.
For those of us who were grandfathered from the old Capital One Aspire World Travel MasterCard, meaning that you will still receive the 10,000 anniversary bonus (essentially shaving off $100 per year on our annual fees), this has essentially become the top travel credit card in Canada in my books. I am very excited to start redeeming my points and if I continue to receive the anniversary bonus I pretty much plan to keep this credit card forever. This is exactly the type of incentives that I like to see in a credit card that will encourage people to retain their credit card rather than to churn.
I previously stated that the new World Elite version is worse than the old World version, but with this new reward system change, it has become better than the older version for those who were grandfathered. However, for those of you who were not, and are new applicants, the calculation is very different. The highlights of the credit card are as follows:
- $120 annual fee
- Earn 10,000 sign up bonus points after your first purchase
- Earn 2 points for every $1 spent on all purchases
The sign up bonus actually doesn’t even cover the annual fee. This credit card is only worth it if you have high spending. For example, if you put $1,000 per month in spending, you would be receiving 24,000 points per year (12 x $1,000), which comes out to $240 – $120 annual fee = $120 net.
Conversely, a credit card that issues 1% cash back with no annual fee would have netted you the exact same return $12,000 x 1% = $120 net.
If you had $2,000 in spending, that would result in 48,000 points per year (12 x $2,000), which comes out to $480 – $120 annual fee = $360 net.
The 1% cash back with no annual fee would have netted you $24,000 x 1% = $240 net.
Remember to always do the calculations before deciding which credit card to apply for to find out if it is worth it with respect to your monthly spending habits.