What is a balance transfer credit card that earns Velocity Points?
A balance transfer credit card that earns Velocity Points allows you to transfer existing credit card debt to a new card while earning Velocity Points on eligible purchases. These cards offer a 0% or low-interest period on transferred debt, helping you save on interest, while accumulating points for Virgin Australia flights, upgrades, or rewards through the Velocity Frequent Flyer program.
What to consider when earning Velocity Points with a balance transfer credit card
1. Revert rate
After the balance transfer promotional period, the interest rate reverts to the standard cash advance rate, typically 20.99–21.69% p.a. Plan to clear your balance during the introductory period to avoid high interest charges.
2. Balance transfer fee
Most cards charge a fee, often 1–2% of the transferred amount. Look for cards with low or no fees to maximise savings.
3. Velocity Points earn rate
The earn rate determines how many Velocity Points you accumulate. For example, spending $5,000 monthly at 1 Velocity Point per $1 instead of 0.66 Velocity Points per $1 results in 17,000 more points annually.
4. Points-earning cap
Some cards cap points earnings. For instance, the Virgin Australia Velocity Flyer Card earns 0.66 points per $1 up to $1,500 monthly, then 0.5 points per $1. Check caps to match your spending habits.
5. Bonus Velocity Points requirements
Bonus points often require meeting a minimum spend within a set period (e.g., $1,500 monthly for two months to earn 50,000 points). Ensure the requirements align with your regular spending.
Calculate how much you could save with a balance transfer card
Use our balance transfer savings calculator below to see how much money you could save!
Credit Card Compare expert on choosing a balance transfer card with Velocity Points
David Boyd, the co-founder of Credit Card Compare suggests looking for balance transfer cards that align with your financial goals.
If you’re aiming to reduce debt while earning Velocity Points, prioritise a card with a long 0% interest period and a strong Velocity Points earn rate. Cards offering bonus points for meeting a minimum spend can significantly boost your points balance, provided you can meet the requirements comfortably.
Balance transfer terms to know before applying
- Introductory rate: The 0% or low-interest rate applied to balance transfers for a set period, typically 12–24 months.
- Balance transfer fee: A one-off fee, usually 1–2% of the transferred amount, charged for moving debt.
- Revert rate: The standard cash advance rate (e.g., 20.99–21.69% p.a.) that applies after the promotional period.
How to do a credit card balance transfer
1. Calculate your balance
Determine the amount you want to transfer, noting that transfers typically cannot exceed 80% of your credit limit.
2. Check if you are eligible
Make sure you earn enough and that you can prove it, especially if you are self-employed or run your own business. Check your credit report before applying. You're specifically looking for recent missed payments or defaults that decrease your chances of being approved.
3. Apply for the card
The easiest way is online. If you need to find documents, you can usually save your progress and come back to the application later when you have what you need.
4. Transfer your balance
Provide details of the credit card balance to transfer during the application. The new provider will manage the transfer, applying the introductory rate.
5. Repay during the 0% period
Ensure you pay off as much of the transferred balance as possible during the 0% interest period to avoid high revert rates.
How to get the most value from using a balance transfer and earn Qantas Points
To optimise savings and rewards, repay the transferred balance within the introductory period. Use the card for eligible purchases to earn Velocity Points, but only spend what you can repay monthly to avoid interest (typically 20.74% p.a. on purchases).
Take advantage of bonus points offers, such as 50,000 points for spending $1,500 monthly for two months, to boost your Velocity balance. Note that balance transfers and cash advances do not earn points.
Expert opinion on using a balance transfer card for Velocity Points
Andrew Boyd, the co-founder and credit card expert at Credit Card Compare explains what you should look out for when choosing a balance transfer credit card.
A balance transfer card that earns Velocity Points can help you manage debt and earn rewards, but discipline is crucial. Prioritise repaying the transferred balance before the 0% interest period ends to avoid high interest charges. Use the card for eligible spending and clear the balance monthly to keep earning Velocity Points without adding new debt.
Benefits of credit card balance transfers with Velocity Points
- Save on interest: A 0% interest period for up to 24 months reduces interest costs, helping you pay off debt faster.
- Consolidate debt: Combine multiple debts into one card for simpler repayment tracking.
- Earn Velocity Points: Accumulate points on eligible purchases for Virgin Australia flights, upgrades, or rewards.
- Additional perks: Some cards offer complimentary travel insurance, airport lounge passes, or an annual $129 Virgin Australia gift voucher.
