|Card Details and Application Link|
Capital One Spark Cash Plus
Earn up to a $1,000 cash bonus; $500 once you spend $5,000 in the first 3 months, and $500 once you spend $50,000 in the first 6 months of account
Click Here to Apply
$150 Annual Fee
Note: This card is not expected to count against Chase's 5/24 Rule
Recent better offer: Expired 3/14/22: $3K after $50K spend in 6 months
FM Mini Review: This may be a good option for business owners who prefer simple cash back rewards.
Card Type: Mastercard
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Earning rate: 2% everywhere ⚬ 5% on hotels and rental cars booked via Capital One Travel
Big spend bonus: Earn an annual $200 cash bonus every year you spend $200,000 or more
Noteworthy perks: No foreign transaction fees ⚬ No preset spending limit
Capital One Application Tips To check application status, call (800) 903-9177 or (877) 277-5901
Capital One Application Tips
To check application status, call (800) 903-9177 or (877) 277-5901
Capital One Spark Cash Plus
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I think that your value calculation is treating the opportunity cost of spending as too high if $50k * (opportunity cost -2x) + 300k points -$150 = $2350.
If the points are valued at 1 cent each (on the low side if one has another Capital one card to transfer to partners), then the opportunity cost of spending comes to 3 cents per dollar.
Most of us can’t get 3 cents per dollar on unbounded spend, and most MS opportunities cost less than that (e.g. taxes are under 2 cents per dollar).
I just found your discussion of how these bonuses are calculated at https://frequentmiler.com/credit-card-signup-bonus-estimation-details/
While I’m not sold on the combination of 3 cpp opportunity cost and 1 cpp redemption value, I can see the argument for each individually. Still, if one is willing to get a first year 3% card for the opportunity cost, it seems reasonable to also be willing to get a venture card for the 1.45 cent redemption value.
We use 1 cent per point valuation for Capital One’s cash back cards because that’s the most common use of rewards on those cards.
We use a 3% opportunity cost for spend with the idea that an alternative is to sign up for the Discover It Miles card to get 3% for a year. When we first rolled out this calculation we used 2%, but that caused weird stuff to happen: some cards earn more than 2% equivalent and so by using 2% as the comparison, offers with higher spend requirements looked more valuable. We switched to 3% to correct for that problem.