Georgia Rose
Athena Cocoves
The Bank of Melbourne Vertigo card offers a lower purchase rate than many cards on the market, and two generous promotional offers to new cardholders. The Vertigo card is also offered by the St.George Bank and BankSA, all of which are part of the Westpac Group.
Fees, interest rates and other details
| Feature | Bank of Melbourne Vertigo credit card |
|---|---|
| Annual fee | $55. |
| (Variable) purchase rate | 13.99% per annum. |
| (Variable) cash advance rate | 21.99% per annum (plus 3% fee of cash advance amount). |
| Promotional balance transfer rates | 0.99%* for 28 months with the promotional balance transfer offer. *Reverts to the applicable variable cash advance rate (currently 21.99% per annum) at the end of the promotional period. |
| Foreign transaction fee | 3%. |
| Minimum credit limit | $500. |
| Interest-free days on purchases | Up to 55 days interest-free if the statement balance is paid in full by the statement due date. Remember, this will not apply to cash advances. |
| Additional cardholders | One free additional cardholder (applicants must be at least 16 years old). |
| Card network | Visa. |
| Intro offer | Choose between two offers: • Balance transfer offer: Get 0.99% on balance transfer for 28 months. • Cashback offer: Earn up to $500 in cashback and get 6.99% on balance transfers for 12 months. |
| Rewards program | None. |
| Included insurance | No complimentary insurances. |
| Benefits | • Earn cashback when you use your card to shop via the Bank of Melbourne Lounge on the ShopBack app. • Access to My Offers Hub which offers cardholders deals and discounts. • Access to Visa Offers + Perks. • Set up Autopay to manage repayments. • Ability to pay with Apple Pay, Google Pay and Samsung Pay. • Access to Plan&Pay, an installment plan from the Bank of Melbourne. |
Basic overview
The Bank of Melbourne Vertigo credit card is a simple, low-rate card with two notable welcome offers. It has an annual fee of $55 and lacks rewards or complimentary insurances, which may not suit everyone’s budget or needs.
However, if you’re aiming to pay down a transferred balance over a period of two years or more and also want a lower interest rate on purchases, it could be worth considering.
» MORE: How to get a credit card in Australia
Understanding the annual fee’s value
While this card doesn’t offer rewards or complementary perks that directly outweigh the $55 annual fee, there are ways to, potentially, offset that cost, depending on how you use the card.
For example, with the cashback offer, earning the maximum $500 from supermarket and gas purchases could go towards covering the annual fee for about nine years.
Alternatively, if you use the balance transfer offer, the $55 fee may seem minimal compared to the high-interest charges you’d otherwise accrue on another credit card. However, this only holds true if you repay the transferred balance in full by the end of the promotional period.
Offers and rewards
Balance transfer offer for new cardholders:
Get 0.99% on balance transfer for 28 months.
What’s the welcome offer worth?
This welcome offer does not have a direct monetary value, but you can still save money by lowering the amount of interest you pay on existing debt.
For example, if you have $5,000 on a card with 21% interest, you’d save roughly $3,000 paying it off over 28 months on a card with 0.99% interest.
Understanding the balance transfer offer
If you select the card’s promotional balance transfer offer, you can transfer up to 80% of your credit limit to the new card at 0.99% interest for 28 months. There is a minimum transfer amount of $200, and there are no transfer fees.
The longer promotional period means you can pay off the balance gradually. However, keep in mind that after the 28 months, any remaining balance from the transfer is subject to the higher revert rate of 21.99%. So, ideally, you want to pay off the debt during the promotional period.
Some credit cards may require you to pay a minimum amount of your transferred balance every billing period to keep the promotional interest rate. Make sure you read the card’s terms and conditions carefully to understand what you need to do to retain the promotional rate.
It’s also important to consider the new card’s standard balance transfer interest rate versus the interest rate you are paying on your current card, especially if you know you’ll be unable to pay the balance transfer off within the promotional interest rate period.
The above offer and redeemable value was current at the time of writing and are subject to change.
Cashback and balance transfer offer for new cardholders:
Earn up to $500 in cashback and get 6.99% on balance transfers for 12 months.
What’s the welcome offer worth?
The $500 cashback can help cover the card’s $55 annual fee for roughly nine years.
As for the balance transfer portion of this offer, the lower interest rate on balance transfers can save you money if you have an existing credit card balance that’s subject to a much higher interest rate.
Example: Let’s say you transfer a balance of $5,000 from a card with 21% interest to the Bank of Melbourne Vertigo credit card. You can pay off the balance within the 12 month promotional period by paying at least $433 per month (and just under $200 in interest).
If you keep the balance on your existing card and pay $433 per month, it’ll take roughly 13 months to pay off in full, and accrue over $500 in added interest, according to the moneysmart.gov.au credit card calculator.
The above example does not take into account annual fees or other charges or interest associated with the card.
Understanding the cashback and balance transfer offer
To earn the $500 cash back, you must spend at least $5,000 on eligible supermarkets and gas station purchases. These purchases are subject to a 10% cash back rate, which only applies to the first $5,000.
After the welcome cash back offer has been earned, the card no longer earns cash back on these categories.
The above offer and redeemable value was current at the time of writing and are subject to change.
The Vertigo credit card from the Bank of Melbourne doesn’t have a rewards program that applies to regular card purchases. However, you can access bonus cash back deals and earn cash back when using the card to shop through the Bank of Melbourne Lounge on the ShopBack app.
Earning cashback:
You must sign up to the ShopBack app, and link your Bank of Melbourne Vertigo card to your account, in order to earn cash back. Cash back is only available on the items for sale through the app. You cannot earn rewards on everyday purchases you make outside of the ShopBack app.
Redemption options:
Cash back takes roughly 90 days to hit your ShopBack account, after which, you can withdraw it to an eligible bank account or PayPal account.
Bank of Melbourne balance transfer rules
Before choosing an offer with a balance transfer, it’s important to know the rules of how balance transfers work at the Bank of Melbourne.
- Transfer limits: You must transfer between $200 and 80% of your new card’s credit limit to take advantage of the offer, and there are no transfer fees. So, if you have $5,000 of debt, you’d need a credit limit of at least $6,250 to transfer the full amount.
- Eligible cards: You can transfer balances from up to three credit, charge or store cards issued in Australia and the issuer must accept BPAY. However, you cannot transfer balances from cards issued by the Bank of Melbourne, St.George or BankSA.
- Interest-free days: The 55 interest free days on new purchases only apply if you pay the closing balance or ‘monthly payment balance’ (new charges minus the transferred balance or active installment plans) in full by the due date. So, if you have a balance transfer, make sure you pay off all new charges each month to keep the 55 interest free days.
- Eligible customers: Balance transfer promotional rates may only apply to new cardholders. There may be additional restrictions for applicants who have held a Bank of Melbourne, St.George, or BankSA credit card in the last year. Make sure you check the terms and conditions of the offer to ensure you are eligible.
- Transfer fees: Balance transfer fees are typically rolled into the transferred balance after it is moved over, becoming part of your debt. While this offer does not have this type of balance transfer fee, future transfers may incur one.
Our take
The below pros and cons are based in part on NerdWallet’s editorial expertise and data collected from over 100 Australian credit cards.
Pros
- Two lengthy balance transfer promotional offers:
- 28 months at 0.99%, or
- 12 months at 6.99% with a potential $500 cashback bonus.
- No balance transfer fees are applied to the welcome offers.
- Lower purchase interest rate (13.99%).
- Higher number of interest free days (55) than many other cards in the market.
- One free additional cardholder, so a close family member or friend can have access to credit without needing to apply for their own card. But remember, additional cardholders are not responsible for the debt, only the account owners.
Cons
- Balance transfer limit (80%) is lower than other cards on the market.
- Charges a fee for overseas and international transactions, which can rack up costs if you plan to use the card regularly abroad.
- Does not earn rewards on purchases, such as miles, points or cash back, which can help offset costs like the annual fee.
- Lacks complimentary insurance, like travel coverage and purchase protection, which can be useful for regular travellers or people planning to use the card for the majority of their purchases.
- High revert rate (21.99%) on transferred balances after the promo period ends.
Eligibility
Who may be eligible?
To apply for Vertigo credit card, you need to:
- be at least 18 years old
- be a permanent resident or Visa holder
- have a verifiable Australian income
- have a verifiable Australian address.
Who might be suited to this card?
According to Bank of Melbourne’s Target Market Determination (TMD)[1], the Vertigo credit card is designed for customers who:
- need a credit card that provides access to a revolving credit facility to make payments and perform other transactions
- want a credit card that charges a lower purchase interest rate
- may want an interest free period on purchases
- may want to access Plan&Pay to split credit card repayments into management instalments
- may want to transfer a balance from one or multiple credit or store cards
- may want access to spending controls
- are able to meet repayment obligations.
Who might not be suited to this card?
Based on the above TMD, the Vertigo credit card is not designed for customers who:
- are seeking a card that earns reward points and want access to travel related benefits
- have a longer-term or specific borrowing need.
How to submit an application
To apply for the Vertigo credit card online, click on the Apply now button and select the welcome offer. To complete the credit card application, you will need:
- identification, such as a driver’s license or passport
- income and employment information
- details of any financial commitments, like a mortgage
- documents to verify your financials, like bank statements.
You’ll be asked what credit limit you require during the application process. So, if you plan on transferring a balance, make sure you request enough to cover the transfer. Remember, you can only transfer up to 80% of the Vertigo card’s credit limit.
» MORE: How long does it take to get a credit card?
Customer satisfaction ratings
Note: Customer review websites can be insightful, but keep in mind that the reviews may not accurately reflect the average experience; for example, unhappy customers may be overrepresented in these reviews. Products also change over time, and reviews may reflect experiences with features and benefits that are no longer available. Nevertheless, these sites are just one way to learn more about the company and the products on offer before you make a decision.
As of this writing:
- Based on less than five Trustpilot reviews, the Bank of Melbourne scored: 4 out of 5 stars.
- Based on over 35 ratings from Product Review, the Bank of Melbourne scored: 1.5 out of 5 stars.
NerdWallet does not endorse the above scores or reviews and provides them for illustrative purposes only.
Frequently asked questions
The bank of Melbourne’s Vertigo credit card has a minimum credit limit of $500.
The bank of Melbourne’s Vertigo credit card doesn’t earn rewards, however, you can earn cash back through the Bank of Melbourne Lounge on the ShopBack app.
Article Sources
-
Bank of Melbourne, “Bank of Melbourne TMD Master Shell – BOM Brand,” accessed September 30, 2024.
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