Velocity Credit Cards with No Points Cap
Velocity Credit Cards with No Points Cap reward cardholders for every eligible dollar of spend on their Velocity Credit Card, as the number of Velocity Points which can be earned is uncapped, meaning their is no limit on the number of Velocity Points you can earn by using your credit card.
The majority of frequent flyer and reward credit cards do not have uncapped capped point earning, which means that cardholders are not fully rewarded for their loyalty in using their credit card. The Velocity Credit Cards which feature no points cap are all issued by American Express and Virgin Money, and are compared in the table below.
Comparison of the Best Velocity Credit Cards with uncapped points
The choice of Velocity Credit Cards with no cap on the Velocity Points you can earn is very limited as the majority of Velocity Credit cards available feature some form of points cap. Although the choice of uncapped Velocity credit card options is limited it is still wise to access each of these cards on merit before making any application. From a point earning perspective two features of the cards should be compared:
1. The Velocity Point earn rate
The point earn rate is the primary determinant of the number of Velocity points you will earn for each $1 you spend on eligible purchases using your Velocity Credit Card. This point earn rate tends to feature 2 tiers, where a general point earn rate is applied to your everyday transactions, whilst a second, higher earn rate is applied to transactions made with Virgin Australia and their bonus partners who include Global Hotel Groups, Car Hire Companies, Retailers and services such as insurance and financial services. Transactions paid for using your Velocity Credit Card at these tier 2 partners generally offer Velocity point earn rates close to double those of standard purchases, made with non bonus partners.
2. Introductory Offer Velocity Points for New Customers
The majority of Velocity credit card providers include an introductory offer of Velocity Points to entice new applicants to select their card, over a competitors. These Point offers can range from 5,000 to 60,000 Velocity Points, with American Express tending to lead the way with the most generous offers. Increasingly these Introductory Point Offers include some conditions, which must be met to acquire the Introductory Points. The most common of these conditions is that you must be a new cardholder, the definition of this varies by card provider, but generally is that you have not held a credit card with the provider in the last 6 months. The other conditions focus on relating the issuing of the introductory points with a level of activity on the new card. So for example, spend $500 in the first month of holding the new card to attain the introductory points.
Whichever Velocity credit card you eventually select, we strongly recommend that you access each card both on its Velocity point earning potential, its competitive in terms of interest rates, annual fees and suitability to your financial circumstances.
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 High Flyer Credit Card: Velocity Points on Purchases - Standard earn rate of 1.25 Velocity Point per $1 spent with no Points cap . It also frequently features introductory points for new cardholders and balance transfer offers
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 enable the cardholder to earn rewards points for each dollar spent on eligible transactions.
What transactions are eligible for 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. 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 tcomplimentary ravel insurance and extended product warranties. A simple approach to accessing whether the annual fee represents good value is to estimate the number of Velocity Points you will earn per year by using the card and then calculate the monetary value of these points by looking 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 card fee is too high for your level of projected annual spend.
2. 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.
3. 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 purchases
4. 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.
5. 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.
Velocity Credit Cards with No Points Cap - Frequently Asked Questions
If you fail to earn or redeem points across a 3 year period your account becomes inactive and it is possible that your Velocity Points and Velocity membership will expire.
The period starts from the last time your earned or redeemed Velocity Points, and you will be sent a reminder email 30 days before the date on which membership will be cancelled. To keep your account active you simply need to earn or redeem some Velocity Points with any Velocity partner. Occasional point earning and redeeming will ensure that your Velocity membership remains active.
Family Pooling allows you to group your family members’ Velocity Points or Velocity Points and Status Credits into one Velocity Account. This means that you can earn Velocity Points faster to redeem for even greater rewards, plus reach a new level of Velocity membership with even more benefits.
You can transfer Points from your Account to the Account of an eligible family member, up to four times per Membership Year. Each transfer must be for between 5,000 and 100,000 Points.
Membership Pause for Parental Leave
If you are expecting a new addition to your family you can pause your Velocity Platinum, Gold or Silver membership for six months, and pick up where you left off with your Velocity membership level intact.
If you are a member of the KrisFlyer program, you can set up a link between your Velocity Account and KrisFlyer Accounts and convert Points and Miles between both programs. A minimum of 5,000 Points per conversion applies. Velocity Frequent Flyer and KrisFlyer members are able to convert their Points and Miles at a rate of 1.35 to 1.00.
No, Balance Transfers are excempt from earning Velocity Points. Velocity Points are earned by paying for purchases on your credit card with Velocity Points being awarded for each dollar you spend on eligible purchases.