Virgin Credit Card

Virgin back in the Australian credit card market with a bang with new Virgin Credit Cards

For many people it might seem like déjà vu, but Richard Branson and his Virgin group are back in the Australian market after a five year foray ended back in 2008.

Virgin made quite a splash with its launch in 2003, with 800,000 credit card customers on its books when it pulled the plug and sold the business to Westpac in 2008. Despite the firm’s operations previously struggling in Australia and having to be supported by the British parent company, Branson believes that the time is right for a return to the Australian banking arena.

‘Run for their money’

The British entrepreneur has re-launched the Virgin Money proposition backed by giant global finance corporation Citibank. Sir Richard’s aim is to bring some competition to a market that has been squeezed by the global financial crisis.

Branson said, ”We’ve come to Australia to give the banks a run for their money. There used to be nine banks, a lot of competition here. Those nine banks have largely disappeared, and now we’ve got four big banks, which means there isn’t a lot of competition … and those banks are making a lot of money.”

Virgin Money’s offering in Australia now includes an online savings account, two new credit cards and the promise of mortgage and everyday banking facilities in the future.

New credit cards

Virgin have re-entered the Australian market with two excellent new credit cards:

• Virgin Flyer Card – This excellent rewards credit card is linked to Virgin’s Velocity rewards scheme. You earn points for every dollar spent on the card which can be redeemed for flights to over 400 destinations as well as other travel rewards
• Virgin No Annual Fee Card – This everyday credit card boasts a low annual rate and up to 44 days interest free, as well as a superb balance transfer rate. Virgin also promise that cardholders will never pay an annual fee on this card, ever

Great news for consumers

Backed by Citibank, many analysts have welcomed Virgin’s return to Australia, believing that it is only good news for consumers.

Canstar Cannex analyst Peter Arnold believes that the deal between Virgin and Citibank was more sustainable than Virgin’s previous arrangements. “They seem to have covered all the important basics this time,” Mr Arnold said. “The last couple of years have been tough, but as things improve there is room for more players.”

Professor Paul Kerin, from the Melbourne Business School, also believes that the timing of Virgin’s return is good. “I’m very pleased to see this happening, particularly with mortgages, when smaller providers were forced to reduce their activities because of the GFC,” he said. Applying for a Virgin Credit Card is easy, select a card from this page for a secure transfer to your application.