Our Pick Of The Best Virgin Velocity Credit Cards For Frequent Flyers

We exclusively researched the nine Virgin Velocity credit cards available to Australians and did not analyse ‘flexible rewards credit cards’, which allow you to transfer points to Velocity as well as other airline programs.

Our analysis compared the cards across the following data points:

• Bonus points
• Points per spend
• Annual fee
• Currency conversion fee
• Rewards points cap
• Travel benefits
• Lounge access
• Interest rate
• Minimum income requirement
• Minimum credit card balance
• Interest-free period
• Number of additional cardholders permitted.

We viewed the interest rates on these cards as a minor factor when rating them as we assume that travellers are using the cards correctly for points accrual, and are paying the cards off in full each month (thereby negating the need to pay interest). But as a general rule, the cards listed charge 19.99% to 23.99% in interest.

About Star Rankings

You will note that we have included a star rating next to each product or provider. This rating was determined by the editorial team once all of the data points above were considered, and the pros and cons of each product attribute was reviewed. The star rating is solely the view of Forbes Advisor editorial staff. Commercial partners or advertisers have no bearing on the star rating or their inclusion on this list. Star ratings are only one factor to be considered, and Forbes Advisor encourages you to seek independent advice from an authorised financial adviser in relation to your own financial circumstances and investments before you decide to choose a particular financial product or service.

Virgin Velocity Frequent Flyer is Virgin Australia’s loyalty program that allows members to earn points on flights, holidays, everyday shopping, and if you have a credit card, eligible purchases you make when using it.

According to Virgin, it currently boasts almost 11.5 million members, who all can earn points via more than 300 brands, whether that be through transferring Flybuys points, shopping in the Velocity e-store or wine store or making purchases using a Virgin Velocity Frequent Flyer credit card. Points earned when using a credit card are loaded into the cardholder’s online Velocity account.

Currently members can redeem from 6,200 points for a flight. This can get them a one-way economy class seat from Sydney to the Gold Coast, for example. A trip from Sydney to Fiji requires 17,800 points. In both cases taxes, fees and carrier charges are payable on top of the points that must be redeemed.

In addition to flights, members can also use their points for hotel bookings, and retail purchases, but bear in mind that points expire after 24 months.

If you’re a business owner, you may want to consider the American Express Velocity Business Card. Benefits include:

• 100,000 bonus points when you apply by 6 February, are approved and spend $3,000 on eligible purchases within two months of your approval date
• 2 points per $1 spent on travel with Virgin Australia, 1 point per $1 spent on everyday spend, and 0.5 points per $1 spent on government spend
• Two complimentary passes to the Virgin Australia lounge at selected domestic airports each membership year
• Travel Insurance for you, your family and employees that are additional cardholders
• Up to 99 employees as additional cardholders for the same fee as the primary card holder.

The card costs $249 a year and charges interest at 22.99% a year if you only pay minimum monthly repayments.

The Bank of Queensland also offers its Specialist Platinum Card and Specialist Signature Card to medical, dental or veterinary professionals or students, and qualified accountants. They can apply as either an individual or a sole trader.

Benefits of the Specialist Platinum Card include:

• 0.5 Velocity points for every $1 spent on eligible purchases in Australia up to 5,000 points per month, and 0.25 points per $1 thereafter, 1 Frequent Flyer Point for every $1 spent on eligible international purchases
• Complimentary travel insurance
• Concierge provided by Visa

It costs $150 annually, requires a minimum balance of $6,000 and has an interest rate of 20.50% on purchases. Working cardholders must earn an income of at least $60,000 per annum. This requirement does not apply to students.

Working applicants for the Signature card must earn at least $120,000 per annum. Its benefits include:

• 1 Velocity point per $1 spent on eligible transactions in Australia up to 10,000 points per month and 0.5 Points per $1 thereafter
• Ability to earn points by using the card to purchase a car or equipment, or make repayments on select BOQ Specialist loans
• Global airport lounge access with Priority Pass™ Standard Membership for the primary cardholder. The primary cardholder is entitled to four complimentary visits to Priority Pass lounges and may bring one guest per visit free of charge per year
• Complimentary travel insurance
• Concierge provided by Visa
• Access to the Visa Luxury Hotel Collection.

This card costs $400 per year, requires a minimum balance of $15,000 and has an interest rate of 20.50% on purchases.

As when considering any type of credit card, remember to check the terms and conditions for any fees, charges and limits that may apply.

These can include:

• Minimum credit limit
• Minimum repayments
• Interest on purchases
• Interest-free period
• Interest on cash advances
• Balance transfer interest rate
• Annual fee
• Currency conversion fee
• Late payment fee

Of course you’ll also want to check the benefits:

• Points earned per dollar: While 1 point per $1 is decent, 1.25 points per $1 or more is ideal, but usually comes with a higher card annual fee
• Promotional offers: These can greatly boost your points. The offer may be ongoing or limited to applicants who sign up before a certain date. Usually these dates are extended, which means it’s rare to sign up to a new card without some form of a bonus points offer—sometimes as high as 100,000, although conditions apply.
• Perks: These can include access to particular lounges and seat upgrades, a specific number of times per year. Some credit cards offer travel insurance. As with any type of insurance, it’s best to read the small print for the exact cover included and any limitations. Conditions on cover may differ if you take a domestic or international trip too.
• Additional cardholders: Often you can add one to nine additional cardholders, depending on the provider, which can allow you to accrue points even quicker as they use the card too. Depending on the provider, there may be a fee per cardholder. The American Express Velocity Business Card allows up to 100 staff members as cardholders, including the primary holder, but each must pay the annual fee.

Unlike credit cards, charge cards usually require the cardholder to pay the balance in full each month. They may also have no credit limit but monitor the cardholder’s financial behaviour to determine whether to approve purchases.

In comparison, credit cards allow the card holder to carry a balance over time, by paying a minimum monthly payment, though they’ll usually incur interest charges for this privilege. Credit cards especially suit those who want extra time to pay down their bills after making purchases. They usually offer a set number of days to pay off the monthly balance interest-free on purchases.

All the cards listed are credit cards, with the exception of the American Express Velocity Business Card which is technically a charge card. The credit cards each have an income requirement and a lower credit limit ranging from $2,000 to $15,000:

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The American Express Velocity Business Card requires businesses to have a turnover of up to $2 million.

You can apply for any of the Virgin Velocity Frequent Flyer Credit Cards online.

Before applying, it’s best to look through the eligibility requirements. These will also state if a credit check is required for the provider to determine whether you will be able to afford repayments.