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 for life

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.

Interest-free 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 12 months.

Virgin Money’s balance transfer calculator says that you could save $1,324 by transferring a $7,000 balance from a 20% p.a. card.

This is not the longest balance transfer offer available. Some balance transfer cards offer two interest-free years or more, but there is almost always an annual fee involved for these longer deals.

If you do make a balance transfer, plan to use another card for purchases for 12 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 introductory period ends. Make a diary note of the offer’s expiry date, and aim to pay off all your debt by then.

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 interest-free each month

However, with a little planning you can avoid paying interest altogether. You’ll get up to 44 days interest-free 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 four 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.

No rewards points or insurance

Choosing this card probably means you aren’t interested in Velocity Points, airport lounge passes, 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.

Is the Virgin Money No Annual Fee Credit Card worth it?

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. It would be a suitable first credit card or one for the cost-conscious.