Review of the Volkswagen Credit Card



The Volkswagen Credit Card was last reviewed on 7th December 2005.

Summary - The Volkswagen Credit Card will allow the Volkswagen fan to earn reward points that will go towards the purchase of a new Volkswagen. Furthermore, this credit card has a reward program and allows you to exchange points for other rewards. What caught our eye was that you can exchange points for American Airlines certificates. This credit card will also appeal to those who want to redeem reward points for American Airlines tickets. (we will explain why in a second). Let's take a closer look at this card.

Reward Formula - The Volkswagen credit card lets you earn two points for every dollar you spend on Volkswagen stuff (as their website puts it). Reward points can be used for a purchase or lease of a new Volkswagen vehicle, or to make a payment on a current VW lease or loan. It can also be redeemed for VW DriverGear´┐Ż and accessories for your carand VW parts or service. There is also a reward program, so you can also redeem points for other non-volkswagen items. You can redeem checks is $25 increment once you have earned 2,500 points.

Annual Fee and APR - There is no annual fee for the Volkswagen credit card. The apr is prime rate plus 5.99%, 9.99% or 14.99%. The two-cycle average daily balance method (including new purchases) is used to compute monthly balance. You also get an introductory 0% apr on both purchases and balance transfers for six billing cycles.

The Volkswagen Credit Card as an American Airlines AAdvantage credit card?


The Volkswagen Visa Platinum also has a reward program with travel and shopping rewards. One reward that caught our eye was that you can exchange points for American Airlines® certificates, which are valid towards any published airfare on American Airlines/American Eagle and AmericanConnection (with some restrictions).

Below is a table showing the rewards for American Airlines certificate.

Certificates Points needed
$100 certificate 10,000 points
$150 certificate 15,000 points
$250 cetificate 25,000 points
$350 certificates 35,000 points
$600 certificates 60,000 points


The reason why this is interesting is because the American Airlines AAdvantage credit cards issued by Citibank do not allow you to earn double miles. The Citi Platinum Select AAdvantage Card for example has $85.00 annual fee, but you cannot earn double miles. The apr is also prime rate plus 9.99%. Citi also has a bronze AAdvantage card, wih no annual fee, but you only earn one mile for every two dollars you spend.

Hence, AAdvantage members should also take a look at this card as well, since you pay no annual fee, get a lower apr and earn same number of miles as the Citi AAdvantage credit cards.

Other Rewards - The rest of the other rewards are very decent. The reward program is not as comprehensive as say the Citi ThankYou Redemption Network, but you do get electronic rewards, home items, various gift certificates for dining and shopping merchants. For travel rewards, you get gift certificates for the Marriot, Hyatt hotels and also for Avis.

Conclusion - We recommend the Volkswagen Platinum Visa® with Rewards to either the Volkswagen fan who wants to save money on Volkswagen product purchases or also American Airlines flyers as a quasi "no annual fee American Airlines credit card".

Positves
  • Earn double points for purchases on Volkswagen stuff
  • No annual fee
  • 0% apr for 6 months
  • Can be used as a "no annual fee American Airlines credit card"
  • Decent basic reward program


Negatives
  • Uses two-cycle average daily balance method (including new purchases)



Volkswagen Credit Card
Reward Formula
Point Accumulation Earn 2 Reward Point for every dollar you spend on Volkswagen purchases
Earn 1 Reward Point for every dollar you spend on other purchases
Cost/Fees/Interest rates
Introductory rate 0% APR for 6 billing cycles (purchases and balance transfers)
Annual Fees No annual fee
Purchase APR Prime Rate plus 5.99%, 9.99% or 14.99%
Balance Transfer APR Prime Rate plus 5.99%, 9.99% or 14.99%
Cash Advance APR Prime Rate plus 14.74%
Penalty/Default Rate Prime Rate plu 23.99%
Min Finance Charge $1.00
Grace Period 20 days
Balance Calculation Method 2-cycle average Daily Balance (including new purchases)
Balance Transfer Fee 3% min $5.00 max $75.00
Convenience checks fee 3% min $5.00 max $75.00
Cash Advance fee 3% min $10.00
Foreign Currency Conversion fee 3%
Over-the-credit-limit fee $35.00
Late Payment fee $15.00 - up to but not including $250.00
$39.00 - more than $250.00



Apply for the Volkswagen Credit Card

If you already have this credit card, we would appreciate if you can take some time to post your review. Our readers will find them very helpful.





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