If you’re a Virgin Velocity frequent flyer and you’re in the market for a credit card, it might make sense to compare credit cards that offer Virgin Velocity points. In a nutshell, credit cards that offer Virgin Velocity points reward your everyday spending by giving you frequent flyer points on eligible purchases.
When used correctly, credit cards that offer Virgin Velocity points can be a worthwhile way to use spending to your advantage and boost your points balance. Generally speaking, cards that offer rewards points like Virgin Velocity points are most effective when you spend a certain amount. To get the most out of credit cards with Virgin Velocity points, compare the cards’ features and fees to make sure you come out on top and reap the rewards.
Here’s what you need to know about credit cards with Virgin Velocity points.
How do credit cards with Virgin Velocity points work?
There are a few different types of credit cards with Virgin Velocity points on the market, and they all work slightly differently. The general rule of thumb is that you earn Virgin Velocity points for every $1 you spend on eligible purchases. An eligible purchase could be your weekly grocery shop or paying for petrol. Cash advances and BPAY payments are generally not rewarded with points.
Once you’ve earnt the points, they’re usually transferred directly into your Virgin Velocity account each month. The more you spend, the more points you earn, and once you’ve accrued enough, you’ll be able to cash them in for flights, upgrades, accommodation, car hire and other potential rewards like gifts and merchandise.
When you apply for a credit card with Virgin Velocity points, you’ll be asked to provide your Virgin Velocity membership details. If you don’t have a Virgin Velocity membership, you’ll ideally need to apply for one before you open a credit card to take immediate advantage of the rewards.
There are two ways to use a credit card to earn Virgin Velocity points. You can use a Velocity co-branded credit card which automatically transfers any eligible points directly into your Velocity account each month. The other option is a partner credit card which allows you to manually transfer any eligible reward points you earn into your Velocity account. Before you choose a card, check whether there are any additional fees for transferring the points across and which card gives you the most points per dollars spent.
How to compare Virgin Velocity credit cards
Much like any other credit card, cards that earn Virgin Velocity points have different features and fees. When comparing credit cards with Virgin Velocity points, you’ll want to make sure that any card fees and interest rates don’t outweigh the benefits of earning points.
To get the most out of your card, compare the ‘earn rate’ (which is the number of points you’ll earn for each $1 spent). Look out for cards that offer any bonus points or incentives for signing up.
As it’s a credit card, pay attention to the interest rates and annual fees as these tend to be higher on rewards cards. Much like any other credit card, check for any incentives, like interest-free days, as well as any other perks, like free travel insurance or exclusive offers.
From time to time, credit card companies may offer bonus points to incentivise new cardholders to sign up. If you’re comparing credit cards with Virgin Velocity points, check whether any of the credit cards offer bonus points. Remember that there’s more to a credit card than bonus points; while they can be worthwhile, check that the ongoing costs of the card don’t cancel out any potential bonus.
When it comes to rewards cards like credit cards with Virgin Velocity points, the interest rate tends to be higher than standard credit cards with fewer features.
As there are a few credit cards with Virgin Velocity points on the market, look for a card that offers you the best overall value when it comes to earning points, as well as any potential interest you may accrue on your card balance.
If you don’t tend to pay your card balance in full each month, a higher interest rate may cancel out any potential points you may earn. Look for cards that offer a lower interest rate as well as interest-free days. Interest-free days can help you keep your card costs down and give you a longer grace period to pay off your card balance without earning any interest.
Much like interest rates, rewards cards like credit cards with Virgin Velocity points tend to have higher annual fees than cards with fewer features. While you may be earning points, you’ll also be paying for the luxury by way of higher rates and card fees.
Before you apply for a credit card with Virgin Velocity points, be sure to do your research to make sure that the annual card fee doesn’t outweigh the perks of earning points. On occasion, some cards may waive the first year of fees as an incentive. Always check the standard card fees to make sure the cost of owning the credit card with Virgin Velocity points doesn’t outweigh the benefits.
If you plan to use the card overseas, check whether there are any international currency charges or additional fees. It’s worth noting that cash advances don’t earn Virgin Velocity points and tend to have a high cash advance interest.
Reward cards like credit cards with Virgin Velocity points often come with bonus perks like complimentary travel insurance and exclusive offers. There are a few things to note about these perks. In most cases, complimentary travel insurance is usually offered on platinum or premium credit cards. The upside of premium platinum cards is that they tend to have a lot more features; the downside is that the annual fees and interest rates are often higher.
If you’re a frequent traveller, paying the premium for a card that offers you extra features may work in your favour. If you don’t travel often or you require complicated insurances, premium platinum cards might not be the best value. Always check the terms and conditions of the insurances to make sure that the level of complimentary cover and the inclusions suit your situation.
Other card perks may include a complimentary domestic flight, access to exclusive flight offers or complimentary entry passes into the Virgin Australia lounge.
What to look out for when comparing credit cards with Virgin Velocity points
Comparing credit cards is about more than weighing up features and comparing interest rates. To make sure you find a credit card that gives you value and rewards, here are a few other things to keep in mind.
All credit cards come with the risk of overspending, especially when you’re spending the bank’s money before your own. Rewards cards that incentivise spending by offering rewards points can tempt cardholders to overspend for the sake of earning points. Credit cards are essentially short-term loans from banks, which charge interest on the money you spend. If you don’t pay off the balance within the interest-free cycle, the costs might outweigh the points.
Some frequent flyer cards will cap the number of points you can earn by using the card. As rewards cards tend to have higher fees and interest rates, check the sums to make sure that you’re still getting value for money and that the number of points you may potentially earn are still of value to you.