Compare Virgin Velocity frequent flyer cards

Many credit cards in Australia reward customer spending by allowing them to earn points on eligible purchases. These points may then be exchanged for various benefits and perks.

For Virgin Australia Velocity credit cardholders, their eligible purchases may earn them frequent flyer points within the Velocity program. When used correctly, these credit cards can be a worthwhile way to boost your frequent flyer points balance. You may then redeem points for a variety of travel related perks. 

Examples of the perks Virgin Velocity frequent flyer points may be able to be exchanged for include:

• Domestic flights, such as to Sydney and Melbourne
• International flights
• Flight upgrades
• Complimentary travel insurance (for yourself and family members)
• Hotel bookings
• Concierge services
• Airport lounge access and lounge passes
• Baggage upgrades and priority delivery
• Extended warranty
• Gift cards
• Rental car insurance

Be sure to review the Terms and Conditions, as well as the product disclosure statement, for a full breakdown of the eligibility criteria of Virgin Velocity credit cards.

You may be able to earn these frequent flyer program reward points by:

• Flying or organising any Travel with Virgin;
• Using your Virgin Velocity frequent flyer rewards credit card for your everyday purchases; and
• Spending money at partner retailers.

As mentioned above, the main way to earn these frequent flyer points using your new card is to make eligible purchases using a Velocity points-earning card. You can expect to earn between 0.5 and 2 points for every $1 you spend on eligible purchases. An eligible purchase could be your weekly grocery shop or paying for petrol, but cash advances and BPay payments are generally not rewarded with points.

There are currently three main credit card issuers who offer Velocity membership rewards cards: Virgin Money, Westpac and American Express (AMEX). You can choose from Mastercard or AMEX from the Westpac card offerings, and Visa from the Virgin Money offerings.  

Some credit cards also may come with bonus Velocity points offerings on sign-up, so keep an eye out for any deals that may suit your financial needs and budget.

Generally speaking, most frequent flyer rewards credit card issuers offer Qantas rewards programs. But this range may potentially expand in future years. 

Normally, if the credit card earns Velocity points directly, you won’t need to do anything after you’ve made the eligible purchase; they’re usually transferred straight into your Virgin Velocity account.

Alternatively, if it’s a partner credit card, you’ll need to manually transfer any eligible reward points you earn into your Velocity account. Do your research on any additional fees the credit card issuer might charge for transferring the points across and which card gives you the best transfer rate.

Much like any other credit card, cards that earn Virgin Velocity rewards points have different features and fees. Make sure that any card fees and interest rates don’t outweigh the benefits of earning points.

• Earn rate

The more points you’ll earn for each $1 spent, or the higher the earn rate, the more you’re getting out of your plastic. 

If you’re comparing credit cards with Virgin Velocity points, check whether any of the credit cards offer bonus points when signing up. But remember, there’s more to a credit card than bonus points; while they can be worthwhile, it’s the ongoing costs of the card that you need to be comfortable committing to. 

• Interest rate

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.

If you tend not to pay your card balance in full each month, a higher interest rate may cancel out the benefits of any rewards points. Look for cards that offer a lower interest rate and be wary of any potential interest you could accrue on your card balance.

Interest-free days are another feature to keep an eye out for. This grace period, usually between 45 and 55 days, when your purchases are not hit with interest can help you keep your card costs down.

• Card fees

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.

On occasion, some cards may waive or discount the first year of fees as an incentive. Before you apply for a credit card with Virgin Velocity points, be sure to do your research to make sure that the standard annual card fee doesn’t outweigh the perks of earning points.

If you plan to use the card overseas, be aware of any international currency charges or additional fees. It’s worth noting that cash advances generally don’t earn Virgin Velocity points and tend to incur a high cash advance interest rate.

• Card perks

Some credit cards with Virgin Velocity points come with bonus perks like complimentary travel insurance and other freebies. All of these will be outlined in the rewards program on the provider's website. 

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. But 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, flight upgrades or vouchers or complimentary entry passes into the Virgin Australia lounge.

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. 

It’s important to remember that credit cards are essentially short-term unsecured 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 points might not be worth the extra interest costs you’ll be charged.

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, do the maths 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.