# The Value of a Capital One No Hassle Reward

The dollar value of 1 Capital One No Hassle Reward is
\$0.0078

Dollar value of 1 reward \$0.0078 Flexibility of rewards Can rewards cover taxes and fees? Strong Yes

### Interested in a Capital One No Hassle Reward Credit Card?

Input your monthly income and expenses, to determine which card is right for you.

## How much are your Capital One No Hassle Rewards worth?

Before we begin, it is important to note that Capital One "Rewards" and "Points" are the same and will be used interchangeably.

Capital One uses a hybrid tier system for the redemption of travel expenses. The tiers apply for all travel under \$600 and can be viewed below in our Capital One redemption chart.
 Cost of Travel Reward Miles Needed Up to \$150.00 15,000 \$150.01 - \$350.00 35,000 \$350.01 - \$600 60,000 \$600.01 and greater Travel cost x 100

Since the number of rewards required for travel is fixed for each tier, the value you receive for your points depends on the total cost of your travel within the tier. Travel expenses that are at the upper end of a tier or over \$600 provide a dollar value of up to \$0.01/point, while the value of one point is considerably less when travel expenses are closer to the lower end of a tier. The value of Capital One No Hassle Miles can range drastically, from \$0.0042- \$0.01. This is something that must be taken into account when redeeming for travel and is built upon further in the "Maximize Your Points" tab.

### Here is the methodology we used to value Capital One Rewards:

A. Calculate the value of an individual reward by dividing the cost of travel by the number of Capital One No Hassle Rewards required.

B. Complete Step A for 4 separate travel expense scenarios:

• Lower end of a tier
• Middle of a tier
• Upper-end of a tier
• Over \$600

C. Take the average of the results generated in Step B to find the average dollar value of a single Capital One No Hassle Reward.

## Case Study: Value per Capital One Mile at Different Travel Costs

Scenario 1 (lower-end of tier): travel costs equal to \$150.01
\$150.01 travel price ÷ 35000 points required =
\$0.0042 /point
Scenario 2 (middle of tier): travel costs equal to \$425.00
\$425.00 travel price ÷ 60000 points required =
\$0.0071 /point
Scenario 3 (upper-end of tier): travel costs equal to \$145.00
\$145.00 travel price ÷ 15000 points required =
\$0.0097 /point
Scenario 4 (over \$600): travel costs equal to \$600.01
\$600.01 travel price ÷ 60001 points required =
\$0.01 /point
Dollar Value of One Reward: average of 4 scenarios
0.0042 dollar value scenario 1 0.0071 dollar value scenario 2 0.0097 dollar value scenario 3 0.01 dollar value scenario 4 ÷ 4 =
\$0.0078 /point

## Overall Flexibilty: Strong

Taxes and fees covered? Consistent value? Transferable to/from other rewards programs?
Yes No No
Yes, points can be used to cover the entirety of travel expenses, including taxes and fees. No, the value of your rewards change depending on what you use them for. When used for travel, the value varies considerably. No, you cannot transfer points to other rewards programs, only between Capital One Reward accounts. However, you have the felxibility to use points on anything!
More than one airline/hotel involved in program? Can the points be used retroactively? Expiration date on points?
Yes Yes No
Yes, you are free to redeem rewards on any travel purchase. Yes, points can be used towards travel expenses for up to 90 days after booking. No, Capital One Rewards never expire while your account is open. Once closed, you immediately lose all unredeemed points.

One of the unique features of this rewards program is that you have the freedom to make travel purchases anywhere using your Capital One card, wait for it to show up on your credit card bill, and then redeem your points towards the purchase. When you select the "purchase eraser", travel transactions that you can redeem points for are displayed. Any booked flights, hotels and car rentals will be displayed, as well as smaller travel costs such as cabs and trains. Using the purchase eraser, Capital One allows you to redeem rewards to fully erase the travel cost (you receive a credit for the full cost) off of your credit card bill.

After making a travel purchase you have 90 days to redeem points for that purchase. For example, let’s say you book a \$700 flight and at the time you have 60,000 points. Since you have 90 days to redeem for this flight you can wait and try to accumulate enough points to redeem for the flight. If you can accumulate another 10,000 points before the end of the 90 day period, you can choose to redeem your points for a full \$700 credit. You can also choose to redeem your points for a cash credit or merchandise.

Although we usually advise against redeeming for cash back with most rewards programs, it is advantageous to redeem for cash back with the Capital One No Hassle Rewards Program. Redeeming for cash back provides a guaranteed value of \$0.075 per point (equivalent to a 1.5% return because you receive 2 No Hassle rewards points for every dollar spent), which is exceptional in terms of cash back rewards.

With great returns for every dollar spent and flexible redemption options without blackout dates or seat restrictions, the No Hassle Rewards program may just be the top travel rewards program out there.

The Capital One No Hassle Rewards Program allows you to pay for all taxes, fees, and surcgarges using your points.

## Best Way to Use Your No Hassle Rewards

The Capital One No Hassle Rewards Program, if used properly, gives you a value of \$0.01 per point. The reason you need to be careful when redeeming your rewards, is that a reward can be worth less than a \$0.01, due to the tier system Capital One uses. The tier system applies to travel expenses under \$600.01

 Cost of Travel Reward Miles Needed Up to \$150.00 15,000 \$150.01 - \$350.00 35,000 \$350.01 - \$600 60,000 \$600.01 and greater Travel cost x 100

## Redeem Points for Travel Over \$600

In general, it is best to save your points for travel expenses over \$600. This expense does not need to be one flight for \$600 but can be made up of two or more tickets booked together. Travel expenses for \$600.01 and higher, can be redeemed for \$0.01 per point (travel cost x 100).

Example 1: Redeeming points for a \$700 flight
\$700.00 flight price ÷ 70000 points required =
\$0.01 /point

To maximize the value of your rewards you should redeem for expenses over \$600 but you can still receive very good value if you redeem your points for expenses at the end of a price tier range.

Example 2: Redeeming miles for a \$340 flight
\$340.00 flight price ÷ 35000 points required =
\$0.0097 /point

If you decide to redeem rewards for a flight that is near the lower end of a tier price range, you receive significantly less value for each reward.

Example 3: Redeeming miles for a \$170 flight
\$170.00 flight price ÷ 35000 points required =
\$0.0048 /point

Your rewards are worth half as much for this flight, compared to the \$340 flight.

If you do not have a travel expense that you would like to redeem your rewards towards, miles can also be redeemed for a cash credit. The downside of redeeming for a cash credit is that you receive less value for each point. When you redeem rewards for travel purchases one reward is usually worth \$0.01, but if you redeem rewards for a cash credit, one reward is worth \$0.0075. Even though this figure is lower than the average dollar value you receive when redeeming for travel expenses, \$0.075 is still good value (1.5% return).