In Australia's competitive market, several banks use the combination of introductory balance transfers and substantial sign up bonuses to attract new customers. You can use these offers to cut your interest rate, get out of debt, and boost your Velocity Frequent Flyer account.
How balance transfer credit cards with Velocity Points work
To be eligible for a balance transfer credit card with Velocity Points, you will typically need good credit and meet certain minimum income requirements. They are generally not aimed at the starter market.
- To transfer a balance from another credit card, you will need to provide the account information for the card you wish to transfer the balance from and the amount you wish to transfer.
- Once the transfer is complete, you can spend with the card and earn Velocity Points on eligible purchases.
- You can redeem your points for flights, hotels, car rentals, and more through the Velocity Frequent Flyer program.
What to compare
- Ongoing interest rates. Look for a card with a lower interest rate than your current one. This will help you save money on interest charges and pay off your debt faster.
- Compare the introductory balance transfer. Things to look at include how long the introductory period lasts, the balance transfer fee (if there is one), and the balance transfer limit.
- Check the points earn rates. Compare how many points are earned per dollar spent. Also, check if there is a cap on how many points can be earned monthly, quarterly, or annually.
- How to trigger the sign up bonus. Any Velocity Points bonus is likely to come with strings attached. Make sure you can hit the spending target.
- Don't forget the annual fee. This can vary substantially. Check the ongoing fee to keep the account open if the first year's fee is waived.
- Minimum requirements. Check how much income is required. Check your credit score and ensure it is in good standing.
Pros and cons
Pros
- Savings on interest. If you're currently carrying a balance on a high-interest credit card, transferring it to a card with a lower interest rate can help you save on interest charges and pay off your debt faster.
- Boost your Velocity balance. Many of these cards have an attractive sign up bonus that can get you closer to your travel goals.
Cons
- Fees. It's common to have balance transfer fees and annual fees.
- Balance transfers don't earn points. This is the case for any rewards credit card on the market, including those linked with Velocity Frequent Flyer.
FAQs
Do balance transfers earn Velocity Points?
No. You cannot earn Velocity Points on the amount transferred.
Do cash advances earn Velocity Points?
No. You cannot earn Velocity Points on cash advances.
Do ATO payments earn Velocity Points?
This varies. Some cards earn Velocity Points on ATO payments (at a reduced rate), and others do not. It is possible to pay the ATO via a third-party payment platform and earn Velocity Points, even if the card itself does not classify ATO payments as eligible for earning points.
