Virgin Money Low Rate Credit Card

My rate: 
17%
 
My annual fee: 
$90
 
Transfer: 
$5,000
 
From: 
All banks
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Offer
Card features
balance transfer
purchase rate
annual fee
Money saved
Virgin Money Low Rate Credit Card
Apply by 31 oct 18
5 reviews
Virgin Money Low Rate Credit Card
Low interest rate of 11.99% p.a.
10% cash back (capped at $100 total) on spend in the first 3 months from card approval.
0% p.a. for 14 months on balance transfers (reverts to cash advance rate). No balance transfer fee.
Add to comparison
14 months
0% p.a.
then 21.69%
with a 0% fee
11.99% p.a.
ongoing
$49
ongoing

Pros & cons

What's good?

What's not so good?

Low interest rate of 11.99% p.a.
10% cash back (capped at $100 total) on spend in the first 3 months from card approval.
0% p.a. for 14 months on balance transfers (reverts to cash advance rate).
No balance transfer fee.
Up to 44 days on purchases.
Half annual fee for life – that’s an annual saving of $50.
Pay faster at the shops using Visa PayWave.
After the balance transfer period is over any uncleared amounts will be subject to the 21.69% p.a. cash advance rate.
Doesn’t earn rewards points.
Additional cardholders cost $29 per card per year.

Our review

Our review of the Virgin Money Low Rate Credit CardReviewed by Yvonne Taylor

Would you like a credit card with one of the lowest purchase interest rate and annual fee combinations around, which still lets you transfer a balance at zero interest? You’ll find this rather unusual combination in the Virgin Money Low Rate Credit Card. There’s also a cashback offer, which you can take advantage of even if you transfer a balance, and still come out ahead.

Not the lowest credit card interest rate, but close to it

The card’s ongoing interest rate on outstanding purchases balances is 11.99 percent p.a. It’s a popular benchmark for low rate cards, and you’ll find several competing cards with this rate on our ‘Low Interest Credit Cards’ page in our Features section. You might choose one of them instead, but if you do you’ll have to be prepared to miss out on either this card’s zero-interest balance transfer or the lower annual fee.

A low interest rate like this is a great money-saver for anyone who is not confident that they will be able to pay off their total purchases balance every single month. If you had a constant unpaid balance of $1,000, for example, you would pay around $120 in interest annually, an amount much lower than the $200 per year it would cost you to have the same purchases balance on a card with an interest rate of 20 percent p.a.

Cash advance rate at the other end of the scale

The low rate promise does not extend to cash advances, however. Avoid taking cash advances from the card if you possibly can, because it has one of the higher cash advance interest rates around – 21.69 percent p.a. – and it will be payable from the date of the cash advance transaction until it’s repaid in full. Ouch!

Low ongoing annual fee

Cards competing with this one may offer a longer balance transfer, and a discounted (or even zero) fee in the first year, before a higher ongoing fee kicks in. But the Virgin Money Low Rate Credit Card lays all its cards on the table, with a low $49 ongoing annual fee, in the first year and every year. (Virgin say that the standard fee for this card is $99 and that you’re actually saving $50 per year.)

Unfortunately, it gets a little more expensive if you need a supplementary card on the account – $29 p.a. per extra card.

A reasonably long balance transfer offer, with no upfront fee

Once again, 14 months @ 0 percent p.a. is not the longest zero-interest balance transfer offer around, but many of the lengthier offers levy an upfront fee of up to 2 percent of the amount transferred, while this one has no fee.

If you were to bring across a $5,000 balance from cards where you are paying 20 percent p.a., you’d save $1,139 in interest during the life of the offer.

But there are two catches you need to avoid.

Firstly, the revert interest rate is the punishing 21.69 percent p.a. cash advance rate. Make every possible effort to repay your balance in full at the end of 14 months, to avoid destroying the savings you so recently pocketed.

Secondly, you’ll forfeit your up to 44 interest-free days on purchases while you have an unpaid balance transfer. You may still want to use the card for $1,000 of purchases in the first three months, to make the most of the cashback offer (see below), but other than that you’d be well advised to use cash or another card for your purchases in the first 14 months if you’ve transferred a balance.

Earn up to $100 with the cashback offer

Virgin Money will return 10 percent of your spending in the first three months of having the card, by way of a credit to your card account, up to a cap of $100 cashback (i.e. $1,000 worth of purchases).

There’s no doubt you could you make good use of an easy $100. While there’s no point in deliberately spending on things you don’t need, just to earn a cashback, most people should be able to channel an average of $334 per month in purchases through their card, without altering or increasing their everyday spending pattern.

And it’s still worthwhile taking up the cashback offer, even if you’ve transferred a balance. By spending around $334 per month for three months, you’re likely to have an average balance of $167, assuming that your expenditure is spread throughout the month, and provided you repay your full purchase balance at the end of each month. Your interest-free days are suspended until you repay your balance transfer but at 11.99 percent p.a. you’re going to pay only $1.67 in interest each month on that average balance of $167. Paying a total of around $5 in interest is worth it, for the sake of getting a $100 cashback.

No compromise on card functionality

Having a low rate and low fee doesn’t mean that you’ll sacrifice convenience and security. The card still has features that come with more expensive competitors, like Visa payWave for Tap & Go purchases under $100, and Fraudshield to monitor suspicious transactions.

There are, of course, no rewards points or other complimentary benefits on offer, but their absence is what keeps both the purchase interest rate and the annual fee satisfyingly low.

Fuss-free eligibility for a practical card

The eligibility requirements for this card couldn’t be simpler. You merely need to be an Australian resident aged 18 or older, with an annual income of at least $35,000. That will allow you to have a low-rate, low-fee card in your wallet, with a balance transfer option if you need it and a likely 10 percent discount on your first $1,000 of spending.

User reviews

3.9 out of 5.0 based on 5 reviews100% of reviewers would recommend this card

Rates and fees
Rewards
Customer service
Convenience
Trust

Reviews from users

Best card ever - great rate and helpful staff

Reviewed and recommended by Elisabeth on 12 Nov 2016

With this credit card, I was able to obtain a good credit history. The rate was great and there were staff on hand for any questions. From there we became involved with Virgin Wines, another great product.

There’s a lot of negativity surrounding credit cards, I think most of the time due to the fact the user is not informed. Staff at Virgin helped me understand how everything worked, so it was a great experience.

Customer service very patient

Reviewed and recommended by Alexandra on 09 Nov 2016

Virgin Money are great. I must admit the patience of the people over the phone has been great when there has been an issue with me not knowing how to access my account or other activation.

The fees are cool for me for the moment, and convenient. I am using the credit for a new laptop and other things to start my down under coaching business online.

Good service and sign-up incentives

Reviewed and recommended by Alison on 27 Sep 2016

If used properly, and if you can pay more than minimum payment, like most cards, this is a good card.

Customer service is fantastic. They are always happy to help and it is quick and easy to get onto a real person. They also have good value incentives when you sign up.

Points and flight voucher help with family visits

Reviewed and recommended by Kristal on 21 Aug 2016

I recently got a new credit card with Virgin Money and the fee each year is substituted for a flight voucher, which is great. So far I see the advantage in earning Velocity points every time I shop, which helps with domestic trips to see family. Customer service could definitely be improved, but overall the benefits have been worth the shift.

Generally very pleased with this card

Reviewed and recommended by Sueev on 20 Aug 2013

This card is convenient, easy to use, and gives you full access to most ATM’s. I have this card because I’m a mother of 3 and very rarely get a chance to go to the bank, with this card I can do all my banking online if I have too or I can withdraw cash too. When I have needed to call for assistance, the customer service has been friendly and efficient.

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.

The basics

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
$35,000
Minimum income for pensioners
Same as standard
Pensioners
Rewards program
None
Temporary residents
N/A

Cardholders

Additional cardholders
4
Additional card fee
$29 p.a.

Credit limits

Minimum credit limit
$6,000
Maximum credit limit
$30,000

Repayments

Interest charged from
Purchase date
Interest free period
Up to 44 days on purchases
Minimum repayment
2%

Balance transfers

The offer

Interest ratePeriodFeeLimitRevert rate
Balance transfers0% p.a.14 months0%80% of credit limit21.69% 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 Low Rate 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.14 months0%80% of credit limit 21.69% p.a.
PurchasesN/AN/AN/AN/A N/A

Ongoing interest rates

MonthlyAnnually
Cash advances 1.81% 21.69% p.a.
Purchases 1.00% 11.99% p.a.

Fees

Annual fee
$49 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

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 $35,000 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
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.
Joint applications are not allowed
Youth Allowance is not acceptable.
Disclaimer: The minimum criteria 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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