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Virgin Australia Velocity Flyer Credit Card 0% Purchase Offer

My rate: 
17%
 
My annual fee: 
$90
 
Price of my purchase: 
$5,000
 
offer
card features
balance transfer
purchase rate
annual fee
your savings
Virgin Australia Velocity Flyer Credit Card 0% Purchase Offer
APPLY BY 15 jun 17
2 reviews
0% p.a. for 12 months on purchases.
Earn Velocity Points on your everyday spend.
Exclusive $129 Virgin Australia Gift Voucher each year.
Add to comparison
6 months
0% p.a.
then 20.99%
12 months
0% p.a.
then 20.74%
$129
ongoing

Pros & cons

What's good?

What's not so good?

0% p.a. for 12 months on purchases.
0% p.a. for 6 months on balance transfers.
No balance transfer fee.
Exclusive new $129 Virgin Australia Gift Voucher which cardholders get each year.
Earn Velocity Points on your everyday spend at the standard rate of 0.66 pt per $1 spent up to a threshold of $1,500 per month.
Personal Concierge Service.
Pay faster at the checkout using VISA payWave.
After the balance transfer has ended any unpaid balances revert to the 20.99% p.a. cash advance rate.
Interest rates on purchases is up at the higher end of the range.
The standard is 0.66 Velocity Points per $1 spent up to a threshold of $1,500 per month and then it drops down to 0.5 pts per $1 spent on other retail purchases. The points earn rate of 1pt per $1 spent only applies to purchases with Virgin Australia.

Review

Our review of the Virgin Australia Velocity Flyer Credit Card 0% Purchase Offer

Have your cake and eat it too, with the Virgin Australia Velocity Flyer Credit Card 0% for 12 months. You can transfer a balance from your old card, pay no interest on it for six months, and still use your card for interest-free purchases for a whole year (thus earning Velocity Frequent Flyer Points as well as getting a separate Virgin Australia gift voucher). Interest-free balance transfers and interest-free purchases are often mutually exclusive, but not this time.

0% p.a. for 6 months on balance transfers

Any unpaid balances on your existing credit cards can be transferred to your new Virgin card and consolidated at 0% p.a. to give you 6 months breathing space. 6 months is not a long time, but it should provide enough respite to recover from any purely temporary financial problems, or to refinance your debt at a more manageable interest rate.

You won’t want to leave the balance unpaid after 6 months though, because the revert rate – the ongoing cash advance rate – is a punishing 20.74% p.a., near the top end of current credit card cash advance rates, though by no means the highest.

Fortunately, the balance transfer fee is waived on this card. (Some cards add a 2% fee to the transferred amount, which would increase a $5,000 transfer to a $5,100 debt.)

0% p.a. for 12 months on purchases

Need something right away that you are sure you will be able to pay for in a year’s time, even though you don’t have the cash right now? 0% p.a. for 12 months is one of the most generous purchase offers available, so by all means take advantage of it as long as you can trust yourself not to get into long term credit card debt.

That debt trap lies in wait when the introductory offer expires after a year, and your unpaid purchase balance starts to attract interest charges at a rate of 20.74% p.a. What’s more, any new purchases you make won’t qualify for the monthly interest-free days, which would normally kick in at this point if you had no unpaid balance. Instead, they’ll be subject to interest charges from the very day you purchase them.

Long zero interest periods on purchases can be extremely beneficial if you take a disciplined approach to your finances, and squirrel away (in a savings or mortgage offset account) the cash for the postponed repayments. When the offer expires, you can withdraw the cash to put your credit card account in order, and pocket the interest benefit.

Earn Velocity points for flights, gift vouchers or merchandise

The points earning rates looks like this:

  • 1 Velocity point per $1 dollar spent on Virgin Australia products (flights, holidays),
  • 0.66 pt per $1 spent, as a base rate, on all other spending, up to a cap of $1,500 per month,
  • 0.5 Velocity points per dollar on all other spending, after the $1,500 cap is reached.

Naturally, Virgin Australia are presenting this as a ‘change’ to the points earning rate rather than a reduction.

If you’re not a current Virgin Australia cardholder it isn’t going to affect you very much, provided you’re satisfied with the lower earning rate. And if you are a regular passenger with Virgin you will still be earning 1 point per dollar relatively frequently with this card, on top of the points you already earn as a Velocity Frequent Flyer.

In summary, it will take longer to reach the bigger points totals needed to redeem for flights and upgrades.

If you are a Virgin Australia Frequent Flyer who makes regular use of the airline’s services, the drop in the earning rate for retail purchases may not make too much difference.

There are no first purchase bonus points offered with this card, so if you are looking for bonus points you may want to consider a different card.

Redeeming Velocity points

There are quite a few options available for spending your Velocity points. You can:

  • Redeem points for award seats with Virgin Australia, starting at 7,800 points for a one way flight between Sydney and Melbourne.
  • Redeem points for ‘Any Seat’ with Virgin Australia (more seats available, but they require more points).
  • Redeem points for any seat on any airline in the world.
  • Redeem points with Virgin Australia Travel for flights, transfers, accommodation, tours, activities, travel insurance or travel gift vouchers
  • Use points for a single entry pass (10,000 points) or annual membership in Virgin Australia airport lounges. (Points required varies depending on your frequent flyer status, starting at 40,000 points to renew membership for Silver members.)
  • Swap points for gift vouchers with Virgin Australia’s partner, Cruisepilot, and use them against a wide variety of ocean cruises.
  • Exchange points for a Brunel Limousines voucher, starting at 12,000 points for an airport transfer.
  • Redeem points for merchandise, gift cards or charity donations at the online Velocity Rewards Store (4,500 points for a $20 card).
  • Use a combination of Points + Pay on most options if you don’t have enough points and need to supplement with cash.

A $129 Virgin Australia gift voucher every year

The old reduced price flight benefit been replaced by a simple travel voucher.

Now cardholders will get 1 x $129 Virgin Australia gift voucher each year that you use your card to make at least one retail purchase. The voucher can be used for any flight or fare type, including sale fares, as well as selected Virgin Australia holiday packages. It’s possible to get a sale fare between Melbourne and Brisbane for $135, so by using the $129 voucher you would have only $6 left to pay! That’s six bucks … or two coffees!

Two useful insurance policies

There’s no international travel insurance with this card (consider the Virgin Australia Velocity High Flyer Credit Card 1/2 Annual Fee if this is a priority) but you will get two lesser policies which could prove beneficial:

  • Transport Accident Insurance: This provides cash compensation if you or your family members sustain a serious injury, or loss of life, while travelling as a paying passenger on a plane, ferry, train or bus. You must have paid your fares with the card.
  • Guaranteed Pricing Scheme: Be assured that you have always paid the lowest price currently available for a major purchase. If you buy something with the card at a retail store (not online) and then see it advertised nearby within 60 days for a much lower price, you’ll get a refund of the price difference (maximum refund $500).

Standard and not-so-standard card benefits

Like most credit cards now on the market, this card comes with a lot of built-in advantages. Many of these are taken for granted, but some may surprise you:

  • Up to 44 days on purchases every month, provided you pay your account balance in full by each due date. (This starts to apply once the introductory zero interest purchase offer has expired.)
  • A wide range of credit limits from $6,000 to $100,000
  • Visa payWave for fast, contactless payments under $100
  • Verified by Visa for an extra level of security (one-time password delivered by SMS) when online shopping
  • Fraudshield, to monitor and report suspicious transactions
  • Visa Zero Liability Policy, which means you are not held responsible for fraudulent or unauthorised use of your card
  • Visa Entertainment, for access to pre-sale tickets for special events
  • Visa Concierge, if you’d like to make use of a personal assistant (online or by phone, anywhere in the world) for travel and entertainment advice and reservations

An annual fee cancelled out by the gift voucher

While this card’s annual fee is $129 p.a., it is effectively reduced to zero in any year that you can make use of the Virgin Australia $129 gift voucher. This means that you will earn points and receive insurance and other benefits at no cost, advantages that persist after the introductory offers expire.

The only downside is that supplementary cards on your account will cost $39 each per year.

Other cards with similar benefits

Cards earning Velocity Frequent Flyer points are issued by Virgin Money (like this one), American Express and NAB. All three issuers have a choice between a low cost card with moderate points earning and limited benefits, and a more expensive card with a higher earning rate and international travel insurance plus other travel privileges.

Since this card is the low cost option, its direct competitors are the American Express Velocity Escape Card (one point per dollar, no annual fee) and the NAB Velocity Rewards Card (a Visa/AmEx duo, one point per dollar on the AmEx card, 0.5 points on Visa, $95 per year).

If you don’t have a particular allegiance to Virgin Australia, you can earn rewards points with a very wide range of cards. Inexpensive options include the American Express Essential Credit Card (no annual fee, AmEx Membership Rewards) and the Woolworths Everyday Money Credit Card (earn points towards Woolworths shopping gift cards, no fee first year, then $49).

So why choose this Virgin card?

This is definitely a card for the regular user of Virgin Australia’s services.

User reviews

2.8 out of 5.0 based on 2 reviews50% of reviewers would recommend this card.

Rates and fees
Rewards
Customer service
Convenience
Trust
Disclaimer: The opinions expressed about credit cards are the reviewer's alone, and do not reflect the views of Credit Card Compare or the credit card issuer. Reviews have not been approved or otherwise endorsed by Credit Card Compare.

Application progress too slow

Reviewed and not recommended by Revanth on 02 Mar 2017

My application is still in progress even after 10 days. You need to chase with the approval team in submitting the documents instead of them doing it for you. After submitting the requested documents and even informing them that you submitted the documents, the next day when you call them, they ask did you upload the document we requested :-(. The response of support team is also not so great.

Application was so quick!

Reviewed and recommended by Hollie on 08 Sep 2015

My application took 3 days and I was approved in no time. I have saved so much money with my 0% interest rate and have been able to spend it on other things.

My only concern was the application security. They spoke to one lady I work with and they didn’t ask about my income to verify my statements were correct.

Basic details

About this card

Card setup
Single
Card tier
Platinum
Card type
Visa
Card use
Personal
Credit rating
Good
Gambling transactions allowed
No
Joint application
No
Minimum age
18 years old
Minimum income
$35,000
Minimum income for pensioners
Same as standard
Pensioners
Rewards program
Velocity Frequent Flyer
Temporary residents
N/A

Cardholders

Additional cardholders
4
Additional card fee
$39 p.a.

Credit limits

Minimum credit limit
$6,000
Maximum credit limit
$30,000

Repayments

Interest charged from
Statement date
Interest free period
Up to 44 days on purchases
Minimum repayment
2%

Balance transfers

The offer

Interest ratePeriodFeeLimitRevert rate
Balance transfers0% p.a.6 monthsN/A80% of credit limit20.99% p.a.

Balance transfers to this card

Balance transfer earns rewards
No
Balance transfer fee payment due
First statement
Balance transfer from personal loan
Yes
Balance transfer processing time
10 - 14 days
Interest free days with unpaid balance
0 days
Maximum balance transfer
80% of credit limit
Available to existing customers
No

Banks you can't balance transfer from

You can't balance transfer to the Virgin Australia Velocity Flyer Credit Card 0% Purchase Offer at the promotional balance transfer rate from:

  • Bank of Queensland
  • Virgin Money

Rates & fees

Promotional interest rates

Interest ratePeriodFeeLimitRevert rate
Balance transfers0% p.a.6 monthsN/A80% of credit limit 20.99% p.a.
Purchases0% p.a.12 monthsN/AN/A 20.74% p.a.

Ongoing interest rates

MonthlyAnnually
Cash advances 1.75% 20.99% p.a.
Purchases 1.73% 20.74% p.a.

Fees

Annual fee
$129 p.a.
Annual fee 2nd year
N/A
Cash advance fee
2.7%
Dishonour fee
$15
Duplicate statement fee
$7
Foreign exchange fee
3.3%
Late payment fee
$10
Over limit fee
$40
Overseas ATM balance fee
N/A
Overseas ATM withdrawal fee
$5
Overseas emergency card replacement fee
N/A
Transaction verification fee
$7

Rewards

Cool stuff you can get with your points

Disclaimer: Does not include taxes, fees, or charges. Accurate as of 25th January 2016.

Rewards program basics

First purchase bonus
N/A
Reward points expiry
Never as long as you keep your account active
Rewards program
Velocity Frequent Flyer
Sign up bonus
N/A
Spend required for bonus points
N/A

Earning points with this card

ATO payment earns rewards
0 per $1 spent
Frequent flyer points
0.66 pt per $1 spent
Overseas earn rate
Same as standard earn rate
Points cap per month
Unlimited (Reduced after $1,500)
Points cap per year
Unlimited
Reward points
0.66 pt per $1 spent

Additional benefits

Airport lounge access
No
Complimentary flight voucher
No
Concierge service
No

Benefits

This card comes with benefits worth an estimated $160

ShoppingEstimated value
Guaranteed pricing / price protection insurance
Valuation based on the assumption of making a $100 claim once every 10 years. Extensive conditions apply. There is no retail market for this type of insurance, so no premium saving.
$10
Travel
Transit accident insurance
Valuation based on similar global transit accident insurance policies available online.
$150
Total estimated value$160
Annual fee$129
Net customer value$31
Disclaimer: Details of who, what, and where coverage applies to, as well as its duration and any coverage limitations will be listed in the credit card insurance product disclosure statement (PDS) on the card issuer's website. The names/labels of complimentary insurance products may differ from one issuer to another. Terms and conditions apply. Always check the insurance PDS when considering a financial product. Accurate as of 31st October 2015.

Minimum criteria for this card

What you need before applying

Be over 18 years old
You are a resident or citizen of Australia
Earn a regular income of more than $35,000 per year
Have a good credit history
You have your personal details ready to complete the online application
Have not applied for multiple credit cards recently
Joint applications are not allowed
Age Pension, Disability Pension, Overseas Pension, Veteran's Pension and Widower's Pension are acceptable.
Austudy, Carer's Allowance, Child Support Payments, Family Tax Benefits and Parenting Payments and Foster Care Allowance are acceptable.
Youth Allowance is not acceptable.
Disclaimer: The minimum criteria pointers are intended only to be a guide. Your application may still be rejected by the bank even if you can answer 'Yes' to all the minimum criteria. The final decision regarding your application is up to the bank.

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