Find out how you can save on interest charges by moving your debt to a Virgin Money credit card with a low or 0% balance transfer rate.
Credit card balance transfer offers give you a way to move your existing debt to a new card that offers a low or 0% interest rate on the balance during the introductory period. This means you have a set period of time when you’ll pay less interest or no interest on your debt, which can also help you clear the balance faster.
With Virgin Money, you can transfer balances from credit cards and store cards as well as from personal loan accounts. In comparison, most other credit card companies only allow you to transfer debt from cards. If you’re thinking about getting a Virgin Money balance transfer, use this guide to compare offers and find out more about the process so you can decide if it’s right for you.
Earn up to 60,000 bonus Velocity Points
Offer ends 31 January 2019
Eligibility criteria, terms and conditions, fees and charges apply
Virgin Money Credit Card Offer
Receive up to 60,000 bonus Velocity Points when you meet the spend criteria and save with a reduced annual fee in the first year.
- $64 p.a. annual fee for the first year ($129 p.a. thereafter).
- 20.74% p.a. on purchases
- Cash advance rate of 20.99% p.a.
- Up to 44 days interest free
- Minimum income requirement of $35,000 p.a.
Compare Virgin Money balance transfer credit cards
What you'll find in this guide
What are the benefits of getting a balance transfer with Virgin Money?
Some of the potential ways a balance transfer could help you deal with debt include the following:
- Save on interest. The amount you’ll save depends on the balance transfer offer, the amount of debt you have and your current interest rate (as well as any other fees). You can get an idea of the potential savings by entering the amount of debt you want to transfer and your current interest rate in the table above.
- Consolidate multiple debts. If you have balances on a few cards and/or personal loan accounts, you could use a Virgin Money balance transfer offer to combine them on one account. This means you’d only have to make one repayment per month and would have just one set of account features and fees to manage.
- Pay off debt faster. The interest savings you’ll make during the introductory period mean that all or most of your repayments will go towards clearing your balance. If you want to make the most of the introductory period, use this repayment calculator and plan your repayments based on the length of the balance transfer offer.
Are there any risks to getting a balance transfer with Virgin Money?
All debt products come with some risks. With a balance transfer credit card, the main pitfalls include the following:
- High standard interest rates. When the introductory period ends, any remaining debt from your balance transfer will be charged interest at the cash advance rate for your Virgin Money credit card. This rate is typically around 19-21% p.a., so the charges could quickly add to your balance.
- Temptation to spend. Some Virgin Money credit cards with balance transfer offers also earn points on new purchases. While this could make it tempting to pay with your card, any new charges will attract interest at the standard purchase rate and make it harder to pay off your original debt.
- Impact on your credit score. Applying for a balance transfer credit card can lower your credit score as details of the application are added to your credit history. Keeping your old accounts open after the balance transfer is done could also hurt your credit score by increasing the risk of more spending and debt.
What rates and features should I look at when choosing an offer?
These are the key costs and features to look at when you're comparing balance transfers with Virgin Money or other credit card companies:
- The balance transfer offer.The introductory interest rate and the length of time it’s applied will help you figure out if an offer will work for your debt. In general, a 0% interest rate and a long introductory period will give you the greatest potential savings on your balance transfer.
- The balance transfer fee.Some balance transfer offers come with a one-time fee worth around 2-3% of the debt you move to the new card. This cost varies between offers and is charged when you first open the account. Make sure you calculate this into your overall balance and decide whether this fee is worth paying based on the other details of the offer and card.
- The annual fee.Virgin Money only has one credit card that offers no annual fee for life. So if you’re looking at another option, think about how this cost could affect your balance and whether you can justify it based on the potential benefits and savings you could get from the card.
- The revert rate.This is the interest rate that will apply to your balance transfer at the end of the introductory period. If there’s a chance you won’t pay off your debt when the offer’s in place, work out how much this rate could add to your balance based on your repayment plan.
- Eligible debts.Virgin Money accepts balance transfers from Australian credit cards, store cards, lines of credit and personal loans as long as they are held in your name with another bank or issuer. As Virgin Money credit cards are issued by Citigroup, debts from the following Citi-affiliated brands are not eligible: Bank of Queensland, Citi, IMB, Qantas Money and Suncorp Bank.
- Transfer limits. You can transfer a minimum of $500 and up to 80% of your available credit limit to a Virgin Money credit card. If your application is approved but your balance transfer is higher than the credit limit, you can weigh up your options here before activating the card.
Application requirements for a Virgin Money balance transfer
The low or 0% balance transfer rate is only available when you request a balance transfer at the time of your application for a Virgin Money credit card. So make sure you include the account details and the total amount of debt you want to transfer when you apply. For details on other eligibility requirements and details you’ll need to provide, head to the “How to apply” section of the Virgin Money credit card guide.
Other details to keep in mind
- How long the balance transfer takes. Most Virgin Money balance transfers are processed within 10 working days from when you activate your card, although you should allow more time if Virgin Money sends a cheque to your old provider. So make sure you check the balance of your old and new accounts to see when the transfer is completed – and remember to make any required payments during this time.
- Minimum repayments. Even if your Virgin Money card has a 0% p.a. balance transfer rate, you’ll still need to make a minimum repayment each month. This amount is usually calculated as a percentage of your balance and needs to be paid before the due date listed on each statement.
- No interest-free days on purchases. You won’t be eligible for interest-free days while you’re paying off your balance transfer, so any new purchases will be charged interest from the date they are made. To get interest-free days in the future, you’ll need to pay off your full account balance by the due date on your statement.
- Closing your old accounts. If you want to close your old account after the debt is transferred, you’ll need to do that on your own. If you’re not sure how it works, this guide walks you through the process.
- Earning points. If you get a Virgin Money credit card that offers Velocity Points, be aware that they are only earned on eligible, new purchases. This means you won’t earn any on your balance transfer.
- Payment allocation. Your credit card payments will automatically go towards the part of your balance that is charged the highest interest rate. So any new purchases you make on a balance transfer card during the introductory period will be paid off before your balance transfer debt. While it’s ideal to avoid spending when you have a balance transfer, if you really need to use your card, this guide offers tips to help you manage the balance.
What if I already have a Virgin Money credit card? Can existing customers still get a balance transfer?
If you want to move debt onto your existing Virgin Money credit card, call the customer service team on 13 37 39 to discuss your options. Note that the debt you transfer will need to be held in your name with another financial institution that’s not affiliated with Citigroup. Make sure you ask what interest rates, terms and conditions will apply for your balance transfer as they may be different to the offers available for new customers.
If you want to pay off debt you already have on a Virgin Money credit card (or another card issued by Citigroup), start by comparing other options so you can find a balance transfer card that works for you.
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