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Credit & Charge Card Reviews (23): Virgin Flying Club Black American Express & Visa

This is my review of the Virgin Flying Club Black credit cards.

It is the final part of my series of articles looking at the major UK loyalty credit cards and discussing whether or not they are worth applying for.  These articles will be linked to the relevant sections of the ‘Credit Cards Update‘ page.  My other UK airline and hotel credit card reviews can be found here.

Key link:  Virgin Flying Club Black American Express and Visa application form

Key facts:  £140 annual fee

The representative APR is 57.4% variable, including the annual fee, based on a notional £1,200 credit limit.

If you want to check your credit record before applying for a new card, click here to get your free Equifax credit report and score.  Your first 30 days are free then it’s £14.95 per month.  You can cancel at anytime.

As with all rewards cards, this is not a suitable product for you if you do not clear your balance in full every month.  You should focus on a credit card with a low interest rate such as the AA Low Rate Card. This has a very attractive representative APR of 6.4% variable on purchases and balance transfers.

About the card

The Virgin Atlantic Black credit cards – issued by MBNA (Bank of America) – come as a double-pack of an American Express and a Visa card.  This model may not continue into the future as Amex fees on co-brand cards to UK retailers are now capped at the same level as MasterCard / Visa at 0.3%.

MBNA also issues the United, American Airlines, Emirates, Etihad and Lufthansa credit cards, amongst others. This may impact your ability to get the Virgin card if you already hold an existing MBNA product.

What is the sign-up bonus?

The current sign-up bonus is 18,500 miles.  You will receive this when you make your first purchase within 90 days.

Occasional promotions can see this go up to 25,000 miles.  The last offer finished on 31st October.

It is important to note that MBNA treats the Virgin White and Virgin Black credit cards as separate products.  You can apply for both and receive a sign-up bonus on both.  You can even hold both at the same time, which is not the case with the British Airways American Express cards.

Virgin has recently relaxed its rules on ‘churning’ this card.  You will now be allowed to get another bonus if you cancel and re-apply at some point in the future.  It is not clear what sort of gap MBNA wants to see before awarding a repeat bonus.

Any other benefits?

Yes. The Virgin credit cards, both free and paid, come with two interesting bonuses:

When you spend £5,000 on the Black American Express card, you will receive an upgrade to Premium Economy (for one person) when you redeem your Flying Club miles for an Economy class redemption. A 2nd voucher is available when you spend £10,000. These vouchers are issued at the END of your card year, not when you pass the spend target.

Spend £7,500 on the Black American Express card and you will receive a free ticket for a companion (taxes apply) when you purchase a full fare (booking class Y, B, R, L, U, M, E, Q, X, W, S, H and J) cash flight. This voucher is issued as soon as you pass the spend threshold.

As I wrote in my review of the Virgin White credit card, these offers are less interesting than you think.

The Premium Economy upgrade is OK, but only covers one person per voucher – you would need to spend £10,000 to receive both to cover a couple.  The way the voucher works is that you need to see Premium Economy redemption space available but you are only charged the miles of the equivalent Economy redemption.  Having to wait until the end of your card year before you receive them decreases their value.

The free companion ticket has got easier to use recently.  In early 2016, Virgin extended it to some of the cheaper – but still not cheapest – ticket categories.  However, for many it remains fundamentally useless since very few people buy flexible or semi-flexible cash tickets.

I know that some people can get this to work in certain circumstances.  You will have most success in Premium Economy where an ‘H’ class fare may only be a hundred pounds or so more than the cheapest cash ticket, but this requires some knowledge of the Virgin ticketing system and good timing.  In any event, your second ticket will still not be ‘free’ because the ticket you buy will cost more than the cheapest available one, and the taxes element must still be paid.

Note that Visa spend does not count towards the vouchers.

Virgin Flying Club Black credit cards review

Is there an annual fee?

Yes, £140 per year.

Unlike Amex-issued cards, you do NOT receive a pro-rata fee refund if you cancel.

What do I earn per £1 spent on the card?

The earnings rate on the cards is very good.

You earn 2 miles per £1 spent on the Amex card and 1 miles on the Visa. This is an excellent return – there are no Avios cards which reward you so well, even the paid ones.

Bookings with Virgin Atlantic or Virgin Holidays earn double miles. However, the Virgin Atlantic website charges a whopping 1.5% fee with no cap for using credit cards, and this is NOT waived when using the Virgin card – although you may find that earning 4 miles per £1 outweighs the 1.5% charge.

Remember that the Virgin Atlantic cards have an FX fee of almost 3% for foreign currency transactions.  You may want to consider getting a separate card to use abroad which charges no foreign exchange fees.  I recommend the Lloyds Avios Rewards card which also earns Avios points – even on your 0% FX transactions!  It comes with a 4,500 Avios sign-up bonus if I refer you.  My review of the Lloyds Avios Rewards card is here.

What is a Virgin Flying Club mile worth?

I covered this in my review of the free Virgin White credit card.

To recap: Virgin has a lot of partners now. You can earn miles by converting Tesco Clubcard points as well as Heathrow Rewards and American Express Membership Rewards points. Even if you never fly with Virgin, you could easily top up your credit miles with Tesco points to reach enough for an award. They also have particularly good earning rates with Hertz. There is also this on-going deal for 6,000 free Virgin Flying Club miles for opening a Virgin Money ISA.

Virgin is changing the cost of Flying Club redemptions in January 2017.  Many economy redemptions are getting cheaper whilst Upper Class flights are getting more expensive.  Virgin is also introducing peak and off-peak pricing.  Full details of the Virgin Flying Club changes can be found in this article.

You can also transfer Virgin miles to Hilton HHonors at a 1 : 1.5 ratio which puts a floor under their value. You can also transfer to IHG Rewards Club at 1 : 1.

I would therefore be happy to value Virgin miles at 0.75p – 1p each, in line with Avios.

How does this compare to a cashback credit card?

My default comparison card is the AA FuelSave Credit Card.  This card is free in the first year and offers 0.5% cashback on all spending, 2%-4% cashback on fuel purchases and – in year one – free AA breakdown cover.  The representative APR is 22.4% variable.

Whilst the Virgin card does carry an annual fee, the earnings rate is still excellent. Even on the Visa card, 1 mile per £1 offers a very decent return if you use the miles wisely.

How else can you earn Virgin miles from a credit or charge card?

There are three options worth a look, one of which is initially free:

The American Express Preferred Rewards Gold charge card offers 20,000 Membership Rewards points for signing up and is free for the first year.  These convert to 20,000 Virgin miles.

The American Express Platinum charge card offers 30,000 Membership Rewards points for signing up.  These convert to 30,000 Virgin miles.  It has a £450 fee, refunded pro-rata if you cancel.

The Starwood Preferred Guest American Express credit card offers 10,000 Starwood Preferred Guest points for signing up.  These convert to 10,000 Virgin miles.  It has a £75 fee, refunded pro-rata if you cancel.

Conclusion

18,500 miles is a decent bonus albeit that you are paying a non-refundable £140 annual fee.

The real strength of these cards is the on-going earning rates which are as good as anything on the market.  2 miles per £1 on the Amex is very impressive and is matched only by the Emirates Elite card.  Emirates Elite is also the only card that can match 1 mile per £1 on a Visa or MasterCard.

The application form for the Virgin Flying Club Black credit cards can be found here.

(Want to earn more miles and points from credit cards?  Click here to visit our dedicated airline and hotel travel credit cards page or use the ‘Credit Cards Update’ link in the menu bar at the top of the page.)

Disclaimer: Head for Points is a journalistic website. Nothing here should be construed as financial advice, and it is your own responsibility to ensure that any product is right for your circumstances. Recommendations are based primarily on the ability to earn miles and points and do not consider interest rates, service levels or any impact on your credit history. By recommending credit cards on this site, I am – technically – acting as a credit broker.  Robert Burgess, trading as Head for Points, is regulated and authorised by the Financial Conduct Authority to act as a credit broker.

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Credit & Charge Card Reviews (22): Virgin Flying Club White American Express & Visa
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Comments

  1. Just to say that I cancelled recently (1 month into my new membership year) and did receive a pro-rata refund.

    What I don’t know is if I maintain my upgrade / companion vouchers (or where they are as not sure they were ever mailed to me!)

    • They appear as a 0 point transaction line in your Virgin Flying Club account statement – log in to your Virgin account to see.

      • Helpful reply Tariq, I’ve been wondering how I’d know when the voucher is posted. I’ve had my card a year next month, looking forward to booking my next flight.
        Do you know how soon after your 12m the reward arrives?

        • within the 13th month or earlier if lucky. last time I got it a few days after anniversary date.

  2. How long is the upgrade voucher valid for?

    Thanks

  3. Slightly OT, but I just signed in to my US Amex account and saw that Virgin Atlantic is no longer listed as a transfer partner. Anyone have any info on this?

    *Note this is a true US amex as opposed to a UK amex in USD.

  4. On Wednesday I was offered a sign up bonus of 32000 if I applied whilst in the clubhouse lounge.

  5. If the voucher comes after a year, does that mean you’re forced to pay two annual fees? Or is there a way around this?

    • Don’t use the card after the year is up – if they charge you the fee whilst you’re waiting for the voucher you’ll be able to get it refunded.

  6. Sounds legit….