Earn 50,000 American Airlines AAdvantage® bonus miles after spending $5,000 in purchases within the first 3 months of account opening
Earn 50,000 bonus miles after you spend $3,000 on purchases in the first 90 days — that's enough to redeem for a $500 travel statement credit
$250 Air Travel Credit each year
The Virgin America Visa Signature® Card offers up to 10,000 bonus points for new customers, along with perks like no blackout dates, and $150 off companion airfares – here we’ll look a little more closely at the card to determine the value of the points offered by this travel rewards credit card, how to redeem points, and what the advantages and drawbacks are with this airline Visa Signature card.
10,000 Bonus Points
Many frequent flyer credit cards advertise big sign-on bonuses and easy-to-earn points, but not all points programs offer the same value. To figure out the value of the points offered, you need to figure out exactly what those points can be used for, and how to redeem them.
Virgin’s points are good for redemption through Virgin America’s Elevate frequent flyer program. These points can only be used to book travel on Virgin America, Virgin Atlantic, Virgin Australia, Emirates, Hawaiian Airlines, and Singapore Airlines – there are no other partner airlines that will allow you to book tickets using Elevate points because Virgin is not a member of one of the big three airline alliances.
When you get this credit card and make $1,000 in purchases within your first 90 days as a cardholder, you’ll get 10,000 bonus points. That’s worth up to $200 toward your next reward flight on Virgin America.
Where can you fly with 10,000 points? We did a search and came up with the following itineraries, flying one way trip, economy class - shown here with their cost in points or in cash:
- Chicago to San Diego, one way flight: 7,814 points ($191 value)
- New York (JFK) to Las Vegas, one way flight: 7,582 points ($178 value)
- Boston to San Francisco, one way flight: 7,163 points ($169 value)
- New York (JFK) to London (LHR), one way flight: 10,000 points ($800-$1,400 value, depending on travel dates)
Another important thing to know, particularly if you are flying internationally, is that customers always have to pay taxes on reward travel. For domestic flights, this isn’t a big deal – the flights listed above will cost only $5 or $10 in taxes. The New York to London flight, however, will cost $135 in taxes. So depending on how much you’re saving on the flight, it may or may not be worthwhile. Depending on your travel dates, your free ticket can be worth $800 – meaning you’re saving $665 after you pay the $135 in taxes – or it can be worth $1400 – saving you $1,265 after the $135 tax charge.
Besides getting those bonus points, you’ll earn eight points for every dollar you spend on Virgin America flights, and one point per dollar on all other purchases. There are no blackout dates for booking award travel, but for best availability it’s smart to book as far in advance as possible.
$150 off Companion Fares
Each year, cardholders get $150 off a companion fare when booking travel on Virgin America or their partner airlines. All you have to do is make one purchase on the card each year and keep current on the annual fee to get this reward – some cards require as much as $30,000 in purchases each year to get a companion fare discount, but not so with this card. The annual fee of $49 is easily cancelled out if cardholders take advantage of this $150 travel discount.
Visa Signature Status
Another advantage of this card is that it carries the Visa Signature logo. That means cardholders get all the benefits of Visa Signature membership, including 24/7 concierge service, yearly summary statements, purchase protection, emergency card replacement and cash disbursement in case your card is lost or stolen, no pre-set spending limit, lost luggage reimbursement, roadside assistance, travel insurance, and access to exclusive travel packages and events throughout the year.
The concierge service alone is a huge perk of Visa Signature service – with just a phone call, you can get restaurant and hotel recommendations or reservations, help finding stores, doctors, or other necessities when traveling, and help planning a vacation.
Every card has its pros and cons – so what are the cons of the Virgin America card?
Annual fee - If you don’t like paying an annual fee, this might not be the card for you – it does have a $4912 annual fee. However, as we’ve seen from the reward value calculations, the fee is more than paid for if you take advantage of the rewards offered by this card.
No Transferring Points – As stated above, Virgin isn’t a member of one of the major airline alliances, so their travel points are only good on Virgin America, Virgin Atlantic, and Virgin Australia. If you want to travel on a variety of airlines, or if Virgin doesn’t fly to the places you usually go or plan to go, this might not be the best card for you. However, if you do plan to fly on Virgin, and they go where you mostly need to go, this card could be the perfect travel credit card.
Foreign Transaction Fee – When a travel card has a foreign transaction fee, it’s always something of a drawback. This one has a 3%12 transaction fee for all purchases made outside the U.S. If you mostly travel domestically, this won’t matter, but if you travel abroad very often, you will probably want another card for those trips. Consider carrying a no-annual-fee credit card with no foreign transaction fee as well as having this card – then you’ll have a card for every occasion.
Buckle Up and Earn Points
For anyone in the market for a good travel credit card, this is one to seriously consider signing up for. You can earn free flights, get discounts on travel companion fares, and take advantage of the perks offered. It may not be the most flexible travel card out there, but the annual fee is pretty low for a Visa Signature card, and the rewards can be worth hundreds of dollars each year.