What are the benefits of a Velocity Frequent Flyer Credit Card?
The Velocity Frequent Flyer Program allows members to collect points when they shop, and use them to venture across the globe. Your Virgin Velocity credit card will work just like a regular rewards credit card, earning points on eligible purchases.
Here’s a list of retailers/services you can collect points from:
- flights and hotels
- car rentals
- dining out
- fuelling up your car
These points can then be redeemed to gain discounts on flights, accommodation, and more. As of June 2016, points only expire when you fail to make a purchase every 24 months. By making certain purchases (e.g. shopping at certain supermarkets) you’ll also earn status credits. These help determine your membership level, and (conversely) the benefits you’ll receive!
Velocity Rewards versus Qantas Credit Cards
The big question most people ask is what’s the difference between a Virgin Velocity and a Qantas Frequent Flyer Credit Card?
You’ll find that whether or not the rewards are worth it, will depend on where you shop and which airline you prefer. Because of the agreements these programs have with certain companies (e.g. Virgin with BP), you should look at the shops you’re already frequenting, and then choose a card that aligns with your existing behaviour.
Importantly, the rewards you’re chasing should never come at the expense of not being able to pay off your credit card bill. Find a card with an interest rate you’re comfortable with, and an annual fee that doesn’t break the bank.
How to apply for the Velocity Credit Card
Eligibility can vary between each Virgin Velocity credit card provider. You can find the specific eligibility requirements by comparing each card. Generally speaking though, you will need to be over 18 years of age and have a satisfactory credit rating.
The biggest mistakes customers make when buying reward cards
The Virgin Velocity credit card is suitable for many Aussies, but whether or not it suits you will depend on your personal finance goals. This brings us to our first point: don’t select a credit card for rewards alone. Instead, find something you’ll use regularly, but won’t ‘send you broke’.
Completing a comparison of these cards will help you find something to suitable. When comparing, pay close attention to the following elements of each card:
- Annual fee. Is it an amount you’re happy to pay?
- For example, does it offer complimentary travel insurance, flights?
- Interest-free days. Can you track down a card with plenty of interest-free days?
- Interest rates. Could you afford your credit card bill if you owed significant interest?
- Points caps. Can you only earn a certain number of points per month or year?
- Special offers. You may qualify for bonus points or waived fees on signup. However, are there requirements to these offers? For example, you may have to spend a certain amount in the first few months.