UPDATE- (9:00am Oct. 15, 2015) I just gave Capital One a call and they confirmed that existing cardholders will only be charged the old $120 annual fee, and only new applicants are on the hook for the $150 fee.
We recently wrote about the positive changes with the elimination of the reward redemption tiers to the Capital One Aspire Travel World Elite MasterCard. Now you can get straight up 2% return on travel expenses, including partial redemptions. But all good things come with a catch. There is now an increased annual fee, from $120 to $150. Below are the new highlights of the credit card:
- $150 annual fee
- Earn 40,000 sign up bonus points after spending $1,000 within the first 3 months
- Earn 2 points for every $1 spent on all purchases
The increased annual fee is making me re-thinking whether I want to retain this credit card or not, even though I am grandfathered from the old version, I should continue to receive my 10,000 anniversary bonus. That being said, I have until early in the new year before my annual fee is due again, so I will re-evaluate my spending habits when the time comes. I really wish that Capital One wouldn’t have raised the annual fee, but it was probably inevitable. You gotta give some to take some.
The sign up bonus is very generous though. The 40,000 sign up bonus points is essentially worth $400. I am also glad to see a spending requirement to achieve the sign up bonus. Personally, I like spending requirements, because it requires us to use the credit card, which helps justify the perks and benefits associated with the credit card.
I would note that the 40,000 sign up bonus will probably not stay around for too long as it might not be sustainable. So if you want to jump on this credit card, don’t wait too long to make a decision. At least keep the card for a year, maybe two, before deciding what to do with it.
Unfortunately, the increased annual fee is a real annoyance for me. Here is how I see it. If there is a requirement for minimum spending to qualify for a sign up bonus, why not have a spend requirement to have the annual fee waived as well. Something along the lines of $10,000 in spending per year on a credit card should be more than enough to help waive an annual fee.
UPDATE- Since finding out that I am grandfathered to only have to pay the $120 annual fee indefinitely, I will no doubt keep this card for as long as possible! Glad to have found this out!