Comparison of the Best Credit Cards for earning Velocity Points
Compare Velocity point earn rates, sign up bonus point offers, and features of the Best Credit Cards for Velocity points, apply on line with a decision in 60 seconds
Selecting the Best Credit Card for Velocity Points involves close consideration of 3 key features of the Velocity Frequent Flyer Credit Card Offers:
1. The Velocity Point earn rate
The point earn rate is a primary determinant of the number of Velocity points you will earn for each dollar you spend using your Velocity Frequent Flyer Credit Card. This point earn rate generally has 2 tiers, where the general purchase earn rate is applied to your everyday transactions, whilst a second, higher earn rate is applied to transactions made with Virgin Australia and their partners who include Global Hotel Groups, Car Hire Companies, Retailers and many services such as insurance and finance. Transactions paid for using your Velocity Frequent Flyer Credit Card at these tier 2 partners generally offer Velocity point earn rates close to double those of standard purchases, made with non partners.
2. Capping of the Velocity points earned with your Velocity Frequent Flyer Credit Card
Capping of points is where the credit card provider places a maximum on the number of Velocity points you can earn by using your Velocity Credit Card to earn points across a specific time frame, which is usually a month or a year. Any spend made with your Velocity Credit Card once you have reached the maximum capped points level will not earn Velocity points, so it is important to consider Velocity Credit Cards which offer caps which are in synch with your level of monthly/annual spending. Velocity Credit Cards with no points cap do exist though are few in number, but are well worth a look if you are looking to maximise your Velocity Points by being rewarded for all your credit card spend.
3. Sign up Velocity Point Bonuses
The majority of credit card providers who offer Velocity credit cards feature sign up bonuses to entice new applicants to select their card, rather than a competitors, these bonuses can range from 5,000 to 60,000 Velocity Points. When appraising these sign up bonus point offers be sure to consider any conditions associated with acquiring the bonus as frequently the Velocity Bonus Points are not released to your Velocity Frequent Flyer Account until you meet some spend levels on your Velocity Credit Card. These spend levels tend to be aimed at encouraging a purchase with your new card within the 1st few months of receiving the card, a move designed to get you into the habit of using your new Velocity Credit Card.
Best Credit Cards for earning Velocity Points
$0 Card Fee, No Points Cap, 0% Balance Transfer - The American Express Velocity Escape Credit Card
Introductory Offer: 7,500 Velocity Points
Offer Conditions: Points will be granted after spending $300 on purchases within the first 3 months.
- $0 p.a. Annual Card fee
- Generous Reward Points - Earn up to 2 Velocity Points for every $1 spent on your Card with Virgin Australia and 1 Point for every $1 spent everywhere else
- 0% p.a. balance transfers for the first 12 months - This offer excludes any existing or previous Card Members. A one-off credit plan establishment fee of 1% applies to any balances transferred.
- Supplementary cards - Pay no annual card fee for Supplementary Cards all of which earn points to your account.
- No Points Cap - you can earn as long as your account remains current and in good standing.
- Low Minimum annual income requirement - $40,000 (pre tax).
- Upto 44 days interest free - on purchases
Introductory Offer: 50,000 Velocity Points
- Virgin Australia Lounges - Two complimentary Single Entry passes to the Virgin Australia lounge each year at selected domestic airports
- Complimentary domestic return flight with Virgin Australia - to selected cities, now and every year after your first Card spend
- Supplementary cards - Pay no annual card fee for Supplementary Cards all of which earn points to your account.
- No points cap on the amount of Velocity Points you can earn
- Automatic Points Transfer - Each month any points earned will be automatically transferred to your linked Velocity Frequent Flyer Account
- Exceptional reward point earn rates - earn up to 3 Points per $1 spent
Selecting the Best Credit Card for Velocity Points
Velocity points are earned by using your velocity credit card to pay for transactions with every dollar spent on eligible purchases being rewarded with a number of Velocity points. The best credit cards for Velocity points are those which offer the highest point earn rates, though these velocity point earn rates need to be balanced relative to any annual credit card fee which the credit card attracts.
Comparison of the best credit cards for velocity points involves appraising the point earn rates, any tiers of point earn rates, bonus point opportunities, any expiry terms for the points earned and the existence and level of any Velocity Point capping levels of the credit cards. Three of the current best credit cards for Velocity Points are briefly previewed below:
American Express Velocity Escape Credit Card: No annual fee, Velocity Point earn rate of 2 Velocity Points for each $1 spent on Virgin Australia flights and products and 1 Velocity Point per $1 spent on everyday purchases. Often includes sign up bonus points and has no points cap.
Virgin Australia Velocity Flyer Credit Card: Velocity Points on Purchases - Standard earn rate of 1 Velocity Point per $1 spent up to $1,500 per month, and then 1 Velocity Point for every $2 thereafter. Often includes sign up bonus points and balance transfer offers and has a low minimum income requirement of just $35,000 p.a.
NAB Velocity Rewards Credit Card: With this companion credit card the Velocity Points earned per $1 spent on purchases are in the mid range, they are capped at $100,000 spend per statement period, earn rates for each of the linked cards are: 1 Velocity point for each $1 spent on American Express and 0.5 Velocity Points for each $1 spent on Visa.
Earning Velocity points with a Velocity credit card
Velocity credit cards work in the exact same way as any other rewards credit card, in that they earn rewards points for each dollar spent on eligible transactions. The number of Velocity Points earned for each dollar spent is determined by 2 factors:
- The Velocity point earn rate for each $1 spent with your Velocity credit card on everyday eligible purchases
- The Velocity point earn rate offered when you use your Velocity credit card for transactions with Velocity partners who offer Velocity Bonus Points or elevated point earn rates.
A recent initiative that was introduced to ensure all reward point earning opportunities are maximized is the companion credit card. These companion cards see you issued with 2 credit cards on a single account, an American Express Card (for high point earning) and either a Visa or MasterCard to ensure you have worldwide acceptance in your wallet. Both cards earn reward points on eligible transactions with the American Express Card tending to earn points at a higher earn rate per dollar spent.
What are eligible transactions when earning Velocity points with a Velocity credit card?
Velocity Points are earned when cardholders use their Velocity credit cards to pay for eligible transactions, where eligible transactions include your everyday purchases be it at the supermarket, café or DIY store. The simplest way to understand what purchases are eligible to earn Velocity Points is to list the transaction types that are ineligible, as it’s a much shorter list.
- Cash advances
- Balance transfers
- Interest charges
- Government charges, including ATO payments
- Insurance payments
- Loan payments
- Business transactions
- Gambling transactions
Compare Velocity Frequent Flyer credit cards to earn the most Velocity points
Any comparison of reward credit cards must balance the costs of the credit card with the point earning potential and value of any reward points earned and finally access the credit cards fit with your financial circumstances and ability to manage a credit card effectively to avoid incurring interest charges. Below we consider the credit card features that should be included within any comparison of reward credit cards:
1. Reward Point earn rate
This is the rate at which Velocity Points will be earned when you use your Velocity Credit Card to make a transaction. The earn rate is based on a points per $1 spent ratio, so for example if you make a transaction of $100 with your Velocity Credit Card on an eligible purchase, and the point earn rate is 1 Velocity point per $1 spent, you would earn 100 Velocity Points.
2. Maximum Points Cap
Some Velocity Credit Cards cap the number of Velocity Points you can earn within a specified time period, which is generally a year or a month. This capping of Velocity Points means that once you have reached the capped level of points for the specified period any further spending with your Velocity Credit Card will not earn Velocity Points. Velocity Credit Cards with no Points Cap do exist though are becoming hard to find as the card providers phase these popular card options out.
3. Annual credit card fee
The majority of Velocity Credit Cards charge an annual fee ranging from $50 to $350 per year, with the higher fees supporting higher point earn rates and a deeper range of credit card benefits such as travel insurance and extended product warranties. A simple approach to accessing whether the annual fee represents good value is to estimate the number of points you will earn per year by using each card and then calculate the monetary value of these points are look at what these points could be redeemed for and what the value of these goods are. If the value if these goods don’t exceed the cost of the annual fee it would suggest the credit card fee is too high for your level of projected annual spend.
4. Card Interest rates
If you regularly carry a balance on your credit card the Purchase Rate will be an important card feature to consider, as this will determine the interest charges any debt will incur across each statement period.
5. Interest Free Days
Many Velocity Credit Cards do include interest free days that provide a handy period of no interest prior to having to cover the cost of any credit card transactions
6. Complimentary Virgin Australia flights
This benefit is periodically available with the premium range of Velocity Credit Cards subject to a minimum spend level being reached with your Velocity Credit Card. The flights tend to be domestic economy flights.
7. VIP Benefits
Similar to the complimentary flight benefit the VIP benefits tend to be available only from the premium Velocity Credit Cards. VIP benefits that are frequently offered with the Platinum Velocity Credit Cards are discounts on Virgin Australia International flights and complimentary access the Virgin Australia Lounges across Australia.
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