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Virgin Money No Annual Fee Credit Card

My rate: 
17%
 
My annual fee: 
$90
 
Transfer: 
$5,000
 
From: 
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Virgin Money No Annual Fee Credit Card
APPLY BY 28 feb 17
12 reviews
$0 annual fee for the life of the card.
0% p.a. for 18 months on balance transfers. 2% balance transfer fee applies.
$100 cashback on your card when you spend $2,000 or more in the first 3 months.
Add to comparison
18 months
0% p.a.
then 20.99%
with a 2% fee
18.99% p.a.
ongoing
$0
ongoing

Pros & cons

What's good?

What's not so good?

$0 annual fee for the life of the card.
0% p.a. for 18 months on balance transfers. A 2% balance transfer fee applies.
$100 cashback on your card when you spend $2,000 or more in the first 3 months.
Up to 44 days on purchases on purchases when you pay off your credit card balance each month.
For purchases of up to $100, you can use the Visa payWave feature.
No extra cost to have up to 4 additional cardholders for family.
Apply and get an instant 60 response to your application.
The purchase rate is higher than the average.
Any balance that was transferred that remains after the offer ends will revert to the cash advance rate, currently 20.99% p.a.
If you choose to take up the balance transfer offer on this card the minimum credit limit is $6,000. Otherwise, the standard minimum credit limit is $2,000. So it may not be suitable for people who only need to do a small balance transfer.

Review

Our review of the Virgin Money No Annual Fee Credit Card

How good is it when you can have the words ‘money’ and ‘no annual fee’ all wrapped up in the same credit card.? Because the Virgin Money No Annual Fee Credit Card is all about giving to the cardholder and taking nothing away. Yes, you’ll receive a cashback on your card for meeting a moderate spending target, and there’s no annual fee, ever.

Of course there are the usual fees for cash advances, late payments and the like, and interest charges if you need more than the standard monthly interest-free days, but these are avoidable costs. Perhaps the only disappointment is that there are no Virgin Velocity points to be earned, but the absence of an annual fee more than makes up for this.

No annual fee makes it perfect for students

A no-nonsense, no-fee card like this is ideal as a starter card, especially if you are a student on a restricted budget. But there’s no reason why it shouldn’t be the go-to card for anyone looking for free, uncomplicated credit. The $25,000 minimum income requirement may be a problem if you are just starting out, but remember to take another look at this card once you can overcome this hurdle.

$100 cashback

A sign-up cash bonus – as opposed to rewards points – is rare in the world of Australian credit cards. All you need to do is spend $2,000 on eligible transactions (i.e. purchases of standard goods and services, not cash advances or buying foreign currency, balance transfers or interest charges &c) in the first three months of holding the card. That’s an average of only $667 per month or $154 per week, which shouldn’t be too difficult.

The $100 will be credited to your account 8-10 weeks later, which seems like a long wait, but it represents a 5% discount on the $2,000 spent.

Zero interest balance transfer offer

Here’s another good reason for switching from your complicated, expensive, high-interest card to this pared-down, free, lower-interest alternative. Take the unpaid balance on your existing card, which may be costing you as much as 20% p.a. in interest, and transfer it to your new Virgin Money card. You’ll pay no interest at all on the transferred balance for 18 months.

Virgin Money’s balance transfer calculator says that you could save $1,787 by transferring a $7,000 balance from a 20% p.a. card, even after paying Virgin’s one-off 2% balance transfer fee (which would be $140 on a $7,000 balance).

This is not the longest balance transfer offer available. Some cards offer 20 or even 24 months, but for these longer deals there is almost always an annual fee involved.

One potential snag could be the minimum credit limit of $6,000 if you choose to take up the balance transfer offer on this card. Otherwise, the normal minimum credit limit of $2,000. So this card may not be suitable for people who only need to do a small balance transfer of less than $6,000.

If you do make a balance transfer, plan to use another card for purchases for 18 months (or avoid using a card for purchases altogether) because anything you buy while you have an unpaid balance will attract interest charges from the date of purchase.

Also beware the revert rate – in this case the cash advance interest rate of 20.99% p.a. – which applies as soon as the zero interest 18 months have finished. Make a diary note of the offer’s expiry date, and aim to pay off all your debt by then. For a $7,000 debt this would mean paying off an average of $389 per month.

Slightly lower than normal interest rate on purchases

The interest rate on purchases, should you need to use it, is 18.99% p.a. Once again, this is far from being the lowest interest rate around, but it’s certainly lower than the 20% p.a. found on many cards. Having a slightly lower than average purchase interest rate makes good sense for those times (like around Christmas or your annual holiday) when you may need to use a longer credit period to even out your expenditure.

Up to 44 days on purchases

However, with a little planning you can avoid paying interest altogether. You’ll get up to Up to 44 days on purchases each month. The interest-free days are the time which elapses between the date of your purchase and the payment due date after the end of each month’s billing cycle. Virgin Money will give you 14 days to pay after your monthly statement is issued, so any purchases made on the first day of the cycle are free of interest for 44 days.

Pay off your account balance in full each month, on or before the due date, and you will never be charged any interest.

Spread the love with 4 additional cards

If you have family members or close friends you can trust with your credit, you can share the card’s benefits with them in the form of supplementary cards on your account. You’ll still pay no annual fee for these additional cards – up to four of them – but bear in mind that you alone are the accountholder ultimately responsible for repaying the debt.

Visa PayWave, Fraudshield, Visa Zero Liability

This is an up-to-date card with contactless payments under $100, courtesy of Visa PayWave. You won’t need to use your PIN unless your individual purchase exceeds $100.

But you can rest assured that you won’t be held responsible for any fraudulent transactions, because you are protected by Fraudshield (Virgin Money contact you about any apparently irregular transactions) and Visa’s Zero Liability policy (excludes ATM transactions, and you must protect your PIN, and notify your card issuer if your card is lost or stolen, or you suspect unauthorised use).

No rewards points or insurance

Choosing this card probably means you aren’t interested in either loyalty points or complimentary insurance policies, the kinds of bonus features used to lure big spenders. Points and insurance cover are rarely ‘free’, because you will almost always be paying for them in the form of an annual fee or a high purchase interest rate. This card has no points, no insurance, no annual fee and a moderate purchase interest rate.

Are there other cards like this?

There are plenty of straightforward, no-fee cards to choose from.

The American Express Essential Credit Card has $0 p.a. annual fee, a 14.99% p.a. purchase interest rate, moderate rewards points and a $50 first purchase bonus, but the 0% p.a. balance transfer offer expires after 12 months. It’s also an AmEx card, which means you have to be prepared for refusal or usage charges by some retailers.

The HSBC Credit Card offers $0 p.a. annual fee and a 17.99% p.a. ongoing purchase interest rate, but its zero interest balance transfer lasts for only 6 months and the revert/cash advance rate is a steep 21.99% p.a.

Why should you choose this card?

This card will be a good match for you if you want an uncomplicated card that will cost you nothing to keep in your wallet. It won’t hassle you about loyalty points or ask you to pay for insurance policies you won’t use. But it will reward you for using it with a $100 one-off gift, provided you meet a reasonable spending target, or allow you to get your finances back on track with an attractive balance transfer offer. It’s an ideal first card, or a lifetime card for the cost-conscious.

User reviews

3.9 out of 5.0 based on 12 reviews83% 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.

Interest-free but useless customer service

Reviewed and recommended by Steff on 12 Dec 2016

This card has an 18 month interest-free period on balance transfers. I got this card to roll my loan and credit card into one interest-free card to pay off quickly and I am very happy with the deal.

What I’m not happy with is the customer service. The multiple team members I spoke to could not follow clear instructions from myself or my other bank (where I held the original loan and credit card) and were not following through on rectifying the issues that they were causing after they assured me everything had been sorted out. I had to follow them up myself several times before it was eventually resolved.

High interest, no rewards

Reviewed and not recommended by Kim on 28 Sep 2016

Customer service is good. The downside is that I don’t get any rewards or incentives with this particular card. The interest rate is a bit too high also.

If I could change cards I would , but at this stage I need to pay it off. Once I have achieved this I will look into another card.

Cheap and cheerful

Reviewed and recommended by Katelyn on 04 Aug 2016

Love that there is no annual fee but also feel there is no incentive to use it for everyday purchases: no rewards program or special offers or discounts. Great for emergencies, online shopping, and travel. I feel I have nothing to lose by having this credit card and is a good backup if I ever needed to pay for something at short notice.

No annual fee winner!

Reviewed and recommended by Belinda on 02 Jul 2016

I love that this card has no annual fee. It’s the only card I would have because of it! If I have ever needed to contact Virgin, their customer service have been prompt and helpful. Their website is easy to navigate and bill payment is easy. I would highly recommend this card.

An unforgiving provider

Reviewed and not recommended by Greg on 01 Jul 2016

Unknown to me when I got this card there were to be late fees of $10 per day your payment is late. I once failed to receive a bill in the mail and only found out my payment was late because I got a phone call from them about it. They wouldn’t waive the fees for me for not receiving the bill on time and had to pay a hefty late fee.

Staff are excellent at Virgin Money

Reviewed and recommended by Dee on 17 Jul 2015

Always helpful staff – they’re pleasant, actually helpful, always available on phone and patient with your specific needs. You also have their website, which is accessible and easy to use 24/7.

Never have had trouble with my Virgin credit card.

Very pleased with this card

Reviewed and recommended by Natalie Donsky on 20 Oct 2013

I got this card because it had no annual fees for life. It has since become an Ignite card supported by Westpac. True to its initial claims it has been fee free. I am able to transact with my card using Westpac which makes it easy. I have never had a problem using my card and the accounts are mailed to me each month I use my card.

Great card

Reviewed and recommended by Great Card on 01 Oct 2013

My Virgin card is used on a daily basis and I have never had any problems with using it anywhere in Australia. I have not used it overseas when I have travelled so I cannot review though type of transactions. I pay my account off each month in full so that may also be a reason I don’t have any problems and find it so good.

Excellent card

Reviewed and recommended by Judy on 24 Sep 2013

We find the Virgin Card great to use and easy to pay. The rewards are fantastic. The no fees are great and we can get 4 half price flights each year to anywhere in Australia. This is fantastic for us to be able to visit family interstate. Best thing we’ve ever done.

Great card, easy to use

Reviewed and recommended by Lynette on 16 Aug 2013

Great card, easily accessible and they give assistance when increases are required. Use the card all the time for payments for the internet. Can’t do without a credit card as it allows us to spread out bills into manageable repayments. Helpful when travelling interstate as you can use it everywhere and for paying motels.

Show 2 more reviews

Basic details

About this card

Card setup
Single
Card tier
Standard
Card type
Visa
Card use
Personal
Credit rating
Good
Gambling transactions allowed
No
Joint application
No
Minimum age
18 years old
Minimum income
$25,000
Minimum income for pensioners
Same as standard
Pensioners
Rewards program
None
Temporary residents
N/A

Cardholders

Additional cardholders
4
Additional card fee
$0 p.a.

Credit limits

Minimum credit limit
$2,000
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.18 months2%80% 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 Money No Annual Fee Credit Card at the promotional balance transfer rate from:

  • Bank of Queensland
  • Virgin Money

Rates & fees

Promotional interest rates

Interest ratePeriodFeeLimitRevert rate
Balance transfers0% p.a.18 months2%80% of credit limit 20.99% p.a.
PurchasesN/AN/AN/AN/A N/A

Ongoing interest rates

MonthlyAnnually
Cash advances 1.75% 20.99% p.a.
Purchases 1.58% 18.99% p.a.

Fees

Annual fee
$0 p.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

Benefits

This card comes with benefits worth an estimated $20

MiscEstimated value
Cashback or gift card for meeting spending conditions
$100 cashback for spending $2,000 in first 3 months, which is not an onerous requirement. Spread over 5 years.
$20
Total estimated value$20
Annual fee$0
Net customer value$20
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 $25,000 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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