I’ve had a Virgin Credit Card since it first came out, this review will help you use yours better
Be smart and use the 0% interest on balance transfers to your new Virgin Credit Card for the first six months to pay off your credit card balance without incurring even more interest fees on it.
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NOTE: Virgin Credit Cards stopped being issued any more as of April 3, 2008. Existing Virgin Credit Cards were taken over by Westpac who moved people with Virgin Credit Cards onto a similar Westpac credit card by June 2009 but didn’t add an annual fee.
From July 2010 new Virgin Creditcards will be released under a new 10-year exclusive profit-sharing deal which allows Citibank to sell financial services in Australia using the “Virgin” brand and provide funding, infrastructure and banking networks.
Australians owe far more on their credit cards than 10 years ago – $3000+ vs $946. We have outstanding credit card debt of $41 billion and about $30 billion attracts interest.
Even if you assign a conservative annual interest rate of 12 per cent to that debt, consumers hand over a whopping $3.6 billion in interest.
However this doesn’t mean that credit cards are inherently “evil”. If you’re smart you can beat the banks by :
- Moving your current credit card balance to a card with 0% p.a. interest on balance transfers for the first 6 months so you can pay it off without the debt growing further.
- Closing your existing credit card account and changing to a credit card with no annual fee
- Choosing a low rate credit card with no annual fee and a free rewards program
- Paying your card off in full the day before the payment is due. This way you basically get a free short-term loan by using the bank’s money for the interest free period (typically upto 55 days)
The perfect credit card for this scenario is the Virgin Mastercard which I personally use and which features (as at Sept 2007):
- 0% interest on balance transfers to your new Virgin Credit Card for the first six months
- No annual fee…ever! Why pay a fee every year for the privilege of having a credit card?
- Low ongoing interest rate, currently 12.99% p.a (at Sept 2007)
- Up to 55 interest free days on purchases
- Customer Care Team available 24/7 on the phone – speak to a human, not a machine
- Automatic free membership to Mates RatesTM instant discounts
- No application fee or joining fee
- It’s a MasterCard, meaning it’s accepted at over 30 million locations worldwide
Some people have asked me if Virgin Money Australia offers debit cards or savings accounts – they do not offer these products at present.
However you can read my related articles:
Debit Cards: Better or Worse than Credit Cards?
Whats the difference between Mastercard and Visa?
Don’t forget the new BankWest credit card.. low ongoing rate of about 8.99% – cheaper than any other. If you’re not planning on paying your card off within in the interest free period, it makes good sense to minimise the ongoing rate! C.
EDITOR: good point. not everyone can afford to pay off a credit card each time the statement is due. In that case, however I think it would be better not to have any credit card at all!
PS Be aware that the new bankwest lite credit card has a cash advance rate of 19.99% p.a. (as at 18/04/06)
-excerpts from news.com.au article “Credit card savings”
-excerpt from SMH article “Aussies hit by hidden credit card costs”
-excerpt from news.com.au article “Splurge on low-rate cards”
-excerpt from infochoice.com.au newsflash St George launches low rate card
I do have a home loan with St Georges bank and would like to apply for crdit card advertised taking over balance of crrent credit card at zero interest over a period of 6 months and plus minus 8.99% thereafter. Current credit card with National Bank. Would also want to transfer $3000 from ING and invest at St Georges bank. I also have a furter approximately $2000 in my current savings account with National Bank which must be invested with above $3000. Please forward application forms.
EDITOR: Sorry but I think you’re a bit confused, i’m not a bank 🙂
I would like a low interest, nil annual fee and 55 days interest free credit card. Can you please advise me what cards match these criteria? Thank you.
David Gentle
EDITOR:
You can apply for the virgin credit card online. It matches all your criteria “low interest, nil annual fee and 55 days interest free credit card” plus it has a free “mates rates” rewards program
I have one myself and cant see the point of a credit card with an annual fee and a high interest rate
Does the virgin creditcard rewards program have any real benefits or is it just cross-promotion and marketing?
EDITOR: To be fair whether it has benefits for you depends on what products/services you usually buy.
Some examples where I have benefitted include:
* 10% off everything in all Virgin Music and Virgin Mega Stores including the co-branded Virgin section of Myer department stores
* Up to two tickets for the concession rate of $10.00 each at Dendy Cinemas
* 7.5% off the already discounted price of all books at Seekbooks.com.au
* FREE portable CD player with MP3, when you spend $200 or more on your Virgin Credit Card in-store at Strathfield Electronics
NOTE: each special offer has different conditions and you have to mention the offer to the salesperson you’re dealing with to make sure you benefit.
excerpt from news.com.au article “Credit card debt climbs to $25.3b”
excerpt from SMH Article “Life in the red: Our profligate ways may topple the house of cards”
This article should provide a stern warning to anyone considering whether to apply for a credit card. When used correctly a credit card can be a useful financial tool providing an easy way to track your expenditure via monthly statements and providing upto 2 months interest free.
However a lot of people treat their credit card limit like a several $1000 addition to their bank account balance and fall pray to today’s common practice of pursuing instant gratification eg: really large screen TV’s.
Unfortunately for them this is not the case and they will live to regret their impulse purchase when they dont pay their card off in time or forget to start paying their 12/24 month interest free loan and the interest charges pile up.
excerpt from Today Tonight story “Credit card skimming on the rise”
The Wizard Clear advantage card which is offered by GE Money is fantastic a low interest rate, no annual fee, no atm fees , no fees if used overseas(the only one in the market). The lack of ATM fees means I can use it as a debit card by putting my income onto it every fortnight no bank fees for using an atm and I can use every atm
Also I like that GE is such a big company(worlds biggest makes me feel safe) and the card looks great and service has been fantastic, the best card in the market
Since I saw some comments about the BankWest credit card it interest -free days, I wanted to be sure people were aware of a couple of things with this card.
1. If you take a cash advance from the card, you will not only pay interest immediately on that cash advance, but it will also immediately accrue interest on unpaid credit purchases. ie. you lose your interest-free days for that month.
This bit me several times because I travel overseas a lot. I have one physical (Visa) card that gives me access to all my accounts here in Australia, but when travelling overseas, because BankWest is not connected to Cirrus / Pulse networks, any withdrawl, even if you select savings / cheque, comes out as a cash advance from your visa account. Hence this issue kicks in more often than you would expect.
There is a way around this – you can get a separate M/C Debit card from BankWest that goes direct to the savings account.
2. BankWest has recently introduced “Other ATM” fees for customers living in the Eastern States. These do not apply for CBA ATMs.
Regards,
Cam
Before you apply for a credit card, you should make sure that your credit record doesn’t contain any errors which would lead to your credit application being rejected.
Find out how you can get a FREE copy of your Credit File/Record
According to Baycorp (A credit record agency) you should avoid making too many applications for credit in a short period:
– excerpt from SMH article “Winners play low in high-stakes game”
The interest rate on the Virgin Credit card card is now 12.99%.
I recently decided that this was my year of action and I was going to sort out my finances and get further ahead.
Firstly I got rid of my business bank accounts that charged me for using their services (ie account keeping fees and charges for EVERY transaction) – DONE.
I’ve been using a Credit Union for my personal accounts for 20 years and have NEVER paid fees, they rock !! But don’t do business accounts.
Next up was to get rid of the 18% credit card with yearly charges…
I applied to Virgin for 1 of their Master cards, great deal, low interest, no fees and balance transfer interest rate of 0% for 6 months!!
My background: I am self-employed, my company earns in excess of $120K pa, I have 2 investment properties and $13K outstanding on a M/C with 18% interest and a $15,500 limit.
I stated in my application that if Virgin can NOT give me a credit limit the same as I already have, then don’t worry about the card.
Virgin sent me a card yesterday…. with a $2000 limit!!
I rang to see what could be done and they said that I have to write a letter to their complaints department, which I have currently drafted and will send when I get home and gather the relevant doco to send as well.
It’s all great to get these offers but they won’t say why it’s only $2000, just that once I’ve used it for a few months they’ll review my limit, but no promises on an increase.
I’m now going to get my credit history (as per your other blog page) and see if there’s anything on there that’s a problem.
It’s all very frustrating, especially as I only want 1 credit card, provided company balance sheets and tax assessments showing $75Kpa and gave them MY criteria for a card. I’m very frustrated at just being a “reference” number. And offered something by a big organisation who do not give reasons when declining.
Other than the credit reference check, what else could be the problem?
EDITOR: The low initial limit could be because you’re self employed. I’m told that even people who earn relatively little (around $20,000 / year) can get credit cards with a 5,000 limit if they can show a series of payslips from their employer showing a steady income
I would like to know if virgin credit cards are also available in New Zealand and if so what are the benefits and hidden hooks that i need to know about. Am looking for a credit card with 10,000 limit to take family for holiday to Australia.
EDITOR:
Hi marc
At the moment Virgin Money only offers their products in South Africa, Australia and the UK.
I suggest you use the free and unbiased credit card comparison service provided by the Consumers’ Institute of New Zealand
I have had a virgin credit card and have generally been happy with it but also got done over by their $2000 limit trick.. which is a convenient way for them to get out of the interest free limit transfer offer if your previous balance is higher than that.
Hi there, am working overseas and getting slugged by the ANZ a huge amount for overseas purchases. Have contacted them and they do not have a card that offers zero fees for overseas transactions. I usually pay off my card each month. Any suggestions for a new card?
Thanks Mel
EDITOR: I’d have a go at applying for the Wizard Clear Advantage MasterCard. It has no annual fee. 0% interest for six months on transferred balances. No fees for ATM withdrawals, cash advances or overseas purchases and up to 55 days interest free. Also it can be used on Cirrus and Maestro overseas ATM’s.
You can call Wizard on +61 3 9445 0190 from overseas
I want a credit card for no annual fee
EDITOR: This site is sponsored by several credit card comparison sites at the moment.
Check out the “Sponsored Links:” at the top right hand side of this page to find out which credit card with no annual fee is best for you.
After the frustration with the limit that virgin gave me ($2000), I decided to see what Wizard could offer. They gave me $4000 over the phone…. BUT the best thing…. when I sent in my last 3 citibank statements they simple met the limit on that card. I now have a Wizard MasterCard, with the balance transferred and 0% interest for the next 6 months…. too easy Mr Wizard. Oh… and no annual fees and a low interest rate.
And no overseas transaction fees from Mr Wizard either.
I have also got a Virgin credit card and I am very happy with it. I have experienced no problems with it so far, also not concerning the limit.
To my mind it is also one of the best choices at the moment, but I can just urge everyone out there to inform yourself first. This page was one good source where I got information about different cards.
There are so many companies offering credit cards at the moment and I am constantly bombarded with their advertisements. They just want to take advantage of people who don’t think before applying for a credit card.
Inform yourself first!!
Hi. I’m interested in the low transfer to a New Virgin Card of a previous credit card from another bank (Almost $10,000).
What happens if I pay it all off within 4-6 weeks?
Are there any other fees involved?
Thanks..
Any other recommendations? As I’m paying 17% on $10,000 right now!
EDITOR: As far as I know you’re free to pay off the transferred balance as quick as you want. Make sure to call Virgin on 1800 080 000 to confirm
I have applied to various banks for a credit card to no avail.I have just applied for credit from a loan company which i got approval within 24 hrs.I can’t understand why i was accepted for this loan but not for a credit card.A credit card would have been a better priority to me.I travel every year overseas.I have a great employment history,resident status.What can i do.As i read that if you apply to many times it will go against you.Please can you advises me on this matter.I don’t have a credit rating. Thank you D .Bell
Frankly speaking, when I find such credit cards that have only advantages I doubt if it is really so. There may be disadvantages, but people don’t notice them, as their attention is attracted by positive features.
Westpac has severed its five-year partnership with Virgin Money to provide Virgin branded credit cards.
Under the agreement, Westpac issued Virgin branded credit cards and provided card infrastructure and credit management. The current agreement between Westpac and Virgin Money will end in 2008.
Westpac said it will now negotiate with Virgin Money the purchase of the Virgin credit card book from Westpac.
Virgin Money card customers are not affected and their cards will continue to operate normally.
I was recently discharged from bankruptcy. I am a single mum of 3 on benefits, after a nasty divorce. I paid my bankruptcy out in full early with an inheritance. I have never been silly or irresponsible with finance, I was just left dry by a nasty drunk husband. Now, I have $20,000 change from inheritance and want desperately to buy a home.I have a 4 year old Autistic son who needs me at home so I cant go back to work til he goes to normal school in 2008.I was looking for some advice on how to regain my dignity and financial life again. Im open to any ideas, thank you, anne
EDITOR: Sounds like you could do with the services of a financial planner
The problem is that I don’t trust most financial planners because many earn commission money for recommending products that may not be the most suitable for you
On the other hand a fee for service planner would charge $100’s of dollars if not $1000ish +.
ASIC provides useful advice about tips for choosing a financial adviser
Good luck
I need help!!!! I have bad credit but i would like a credit card (limit $1000 to $2000)for emergency. When it comes to pay day I have nothing left to last me for a week?? My husband has had two cancer ops and not working and i have 3 children. Do you know of anyone that could help me???
EDITOR: I strongly suggest that you contact the Credit & Debt Hotline run by the Consumer Credit Legal Centre (NSW) on 1800 808 488
Hi, I was wondering if this is possible. I currently have a credit card debit of $21,000.00 if I transfered this balance to a new credit card with a 0% interest free rate for 6months when the 6months is up can I then transfer the remaining balance to a new credit card offering the same 0% interest free rate for another six months and keep doing that until the total amount is paid off. Obviously not making any other purchases ever.(How many times would be allowed before the banks catch on). Thanks
Virgin Money Australia has appointed David Baxby as the new chairman of the company following the departure of Macquarie Bank deputy managing director, Richard Sheppard, from the role.
Virgin Money confirmed that it still has Macquarie Group-nominated Tony Gill on the Virgin board. Lester Doecke will also continue to act as an alternative director for Tony Gill.
“Macquarie Bank remains committed as a 10 per cent shareholder in the Virgin Money Australia business,” said the spokesperson.
They’re still doing Virgin Credit Cards in the UK. Why did they disconitue the credit card anyway? In the UK the virgin credit card offers rewards such as discounts on virgin train tickets, virgin flights and other virgin services
I applied for the Virgin card at 0% interest for 6 mnths transfer early last year. When it was approved they were pleased to tell me that I could transfer $2200 across to my new card from 10,000 debt on my other card.
I asked them beforehand and they said it wouldnt be a problem but once I got the card they said no way.
I told them that they could keep it.
I am looking for a credit card that has no annual fee, 55 free days and a low interest rate. I missed out on the Virgin credit card and have been looking for a similar card ever since. Can you please advise of other deals.
hey Neerav why do you think the virgin card was taken off the market? Do you think they predicted the credit crunch early and got out of the market?
It’s unfortunate that Virgin dropped their credit card, but it WAS a trial for them & obviously the market wasn’t as viable as they had imagined.
Still wondering why Virgin removed their credit cards – that too right after i had applied for them! Damn! Insightful article anyway.