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The Capital One credit card is the Savor card, which offers an increased 4% cash back rate on dining and entertainment, 2% at grocery stores and 1% on all other purchases. Rewards don’t expire for the life of the account, and you can redeem cash back for any amount.
In addition, there is a significant sign up bonus of one-time $300 cash bonus once you spend $3,000 on purchases within 3 months, as well as $0 intro fee for the first year and no foreign transaction fee.
However, if you don’t spend enough on these types of activities then you won’t get ahead much on the rewards due to the annual $95 fee.
Capital One Savor Rewards
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Here’s a summary of the main pros & cons (click to see explanation or scroll down):
Capital One Savor Rewards Credit Card – Benefits
Let’s take a look at the benefits of the Capital One Savor card and see if it’s the right one for your wallet or not.
Once your account is approved you are eligible to earn a one time $300 sign up bonus once you spend at least $3,000 in your first three months.
This can be used as a statement credit or cashed out in the form of rewards such as cash back, gift cards, etc.
The Capital One Cash Back rewards card has fixed cash back rates so you don’t have to worry about keeping track of rotating categories and activating them each quarter to accrue higher cash back rates on certain expenses.
Also, your cash back rewards don’t expire so you can wait to use them as long as you’d like.
As a card member, you get a beneficial perk of using Postmates Unlimited for free, which normally costs $9.99 per month.
You’ll be billed the monthly fee by Postmates but Capital One will add the credit for it to your statement.
Postmates is a food delivery service that allows you to order food online and they’ll bring it to you. This normally comes with a $1.99 to $3.99 food delivery fee for partner merchants or $5.99 to $9.99 for all other merchants. But these fees are waived for Postmates Unlimited members.
Capital One Savor Rewards Credit Card – Drawbacks
Now, let’s review the things you should be aware of when choosing Capital One Savor Reward Card
One of the main drawbacks of the Capital One cash back card is it does have an annual fee. As an intro bonus, Capital one will waive the $95 fee for your first year but after that you’ll be billed annually for it. The downside of annual fees is they cancel out cash back rewards you earn with the card throughout the year.
For example, someone who spends $20,000 on their credit card each year could earn between $200-$300 on cash back rewards which then gets reduced when you factor the $95 fee in.
Capital One has some restrictions for getting approved for the Capital One Savor Card. You’re only allowed two capital one credit cards at a time so if you already have two you can’t apply for the third.
Capital One also tends to restrict new card issues to every 6 months so if you opened a Capital One card previously in the past 6 months this could get your application denied.
The APR for Capital One Savor Reward is a 15.99%-24.99% variable rate, which is quite high for a card that requires borrowers with good credit histories.
The Capital One Savor Reward doesn’t offer any kind of APR introductory rate, a feature that appear in many other credit cards and can be relevant for many customers who would like to balance their transfers and earn a fresh start.
Alternatives to Capital One Savor Rewards Card
There are several other great options out there for cash back rewards credit cards that offer lucrative sign up bonuses, competitive cash back rates, and attractive intro APR periods.
Let’s review a few of our top choices as alternative options to the Capital One Savor credit card:
The Capital One SavorOne Cash Back rewards credit card is a no annual fee card and will help you earn cash back rewards on everyday activities.
It offers 3% reward on purchases made eating out and on entertainment, 2% cash back on groceries and 1% cash back on all other purchases.
You can enjoy the generous 15-month 0% on balance transfers and APR to help you pay down an existing balance you may have or pay off new purchases slowly, as well as a $150 sign up bonus.
On the negative side, this card has higher than average APR and 3% balance transfer fee.
The Chase Sapphire Credit card is in their top spot in regards to the best traveling and dining cards as they offer you 2X more points compared to other cards. In addition, Chase Bank offers a 25% point’s bonus, whenever you redeem the points for travel.
The card offers a sign-up bonus of 60,000 points when you spend more than $4,000 on any purchases in the first 90 days. This is equivalent to $750 in travel costs when you redeem your travel rewards.
You shall also earn 2x points while traveling and dining at a variety of restaurants around the world and one point on the dollar on any other purchases. If you use any Lyft rides from now up to March 2022, you shall earn 5X points.
However, with all of these rewards, you should note that the card has an annual fee of $95. The APR range between 15.99%–22.99%, depends on your credit worthiness.
HSBC Cash Rewards Mastercard is a straight forward cash back rewards card for those looking simplify their rewards or consumers looking to spend a bunch in the first year of opening.
This card has a generous 3% cash back on all spending in the first year and a competitive 1.5% cash back on all other spendings. Also, the HSBC Cash Rewards does not have an annual fee.
One of the top notch benefits is the 0% Introductory APR on purchases and balance transfers for the first 12 months from Account opening. The ongoing APR for the HSBC Cash Rewards Mastercard is a 12.99%-22.99%.
This card is also fits for traveling in that it is does not have a foreign transaction fee and cardholders and earn cash back on their purchases during travel.
Is the Capital One Savor Rewards Card Right for You?
This credit card could be for you if you like lucrative $300 sign up bonuses and you like to spend money outside the home frequently on dining and entertainment.
The 4% cash back applies to things like restaurants, fast-food places, coffee shops, cafés, lounges, bakeries, bars, nightclubs and more. It also applies to entertainment options like tickets at movie theatres, concerts, plays, theme park, aquarium, zoo, bowling alley, and more.
However, if you don’t spend enough on these types of activities then you won’t get ahead much on the rewards due to the annual $95 fee. You could be better off finding an alternative card with no annual fee that offers 2% back on dining and entertainment.