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Instalment fees explained

When your statement arrives in the app each month, we’ll ask how you want to pay that month’s spend. We call this your payment option window.

For any spend £30 or over, you can spread the cost with a 3, 6, 9, or 12 month instalment plan. You can also pay it off in full if you prefer. If your monthly spend is less than £30, this needs to be paid off by your next payment date.

Three month instalment plans are fee-free, as is paying off your monthly spend in full. All you'll pay is your monthly payment amount.

For longer plans of nine and twelve months, an instalment fee is added. This is a percentage of the total amount you put into the plan.

  • 6 monthly payments - 5%
  • 9 monthly payments - 7.5%
  • 12 monthly payments - 10%

Before you choose a plan, any fees that apply will be shown in pounds and pence in the app. You can toggle between different plan lengths to see the options before choosing the one that's best for your budget.

If you don't select a plan during the payment option window, your spend will automatically be put into a twelve month instalment plan, with a 10% fee. This will take longer, and cost more to pay off what you owe.

Your payments explained

Each month we’ll ask you to make your Requested Payment. If you miss this payment, you won’t be charged a late fee.

Setting up a Direct Debit is the easiest way to make sure you don’t miss any payments. It’s a regular payment that comes out on the same date - this date is noted on your statement. Your Direct Debit amount will be the cost of the monthly instalment plan(s) you choose and the relevant plan fee, if applicable.

If you miss your monthly Requested Payment, we’ll let you know in the app and by emails that it’s late. You’ll have 10 extra days to make the Requested Payment. If you don’t make this payment, all your existing instalment plans will switch to the Minimum Payment amount. This is equivalent to a 12 month instalment plan, with a 10% fee.

If you miss your Minimum Payment, we'll give you the same 10 extra days to make your Minimum Payment. As the Minimum Payment is the lowest amount you can pay, if you miss this, we’ll need to let Credit Reference Agencies know your account is behind on repayments. This will affect your credit score. We’ll stop your card to give you time to catch up on your repayments.

Instalment plan examples

Here's how each instalment plan option works, based on a monthly spend of £60.

Once you've set up a plan, all your upcoming payments are shown in the Payments View in the app.

If you already have an instalment plan set up, your monthly payment for this plan will be added to your existing monthly payment.

Paying off in full

You spend


No instalment fee


Total amount


1 payment


3 month plan

You spend


No instalment fee


Total amount


3 monthly payments


6 month plan

You spend


Instalment fee - 5%


Total amount


6 monthly payments


9 month plan

You spend


Instalment fee - 7.5%


Total amount


9 monthly payments


12 month plan

You spend


Instalment fee - 10%


Total amount


12 monthly payments


Annual interest rates

You only have to pay the fees explained above. However, the law means we have to explain what those fees would be if we called them interest rates.

The fees we charge on instalment plans are equal to the interest rates shown in the table below:

Instalment plan selectedAnnual interest rate
Pay it off in full0.0%
Pay in 3 monthly instalments0.0%
Pay in 6 monthly instalments10.0%
Pay in 9 monthly instalments10.0%
Pay in 12 monthly instalments10.0%

There are a few assumptions we use to help us describe the instalment plan fees as interest rates. These are:

  • We calculate interest on the day your plan is set up for the whole instalment plan period.
  • The total interest is then divided by the number of instalments for your instalment plan to give your monthly interest amount.
  • Although the annual interest rate for pay in nine and twelve options are the same, the actual price you will pay for these plans will be different. This is because the longer you borrow, the more it costs. The fees table above reflects the actual price you will pay.
  • The law requires us to tell you that the annual interest rate shown is "simple" and "variable". Simple means we don't charge interest on interest. Variable means that the rates could change at some point in the future. However, we'd only change them in limited circumstances, as set out in your terms.

Annual percentage rate (APR)

Additionally, the law requires us to calculate the APR for credit cards in a particular way. We need to explain what the APR would be and provide a representative example of how much it would cost you if you spent £1,200.

What does APR mean?

APR stands for Annual Percentage Rate. It is made up of the standard interest rate on purchases, outside of any promotional rate, along with any other charges you may have to pay. You can use this rate to compare different credit cards.

Representative example

Interest rate 10% per annum (variable). Based on borrowing £1200. Representative 19.5% APR (variable). Credit limits will vary based on your individual circumstances.

Need some help?

For more information, check out the instalments guide in the Extra Slyce section of your Virgin Money Credit Card app, or visit our Help Centre.

Credit card help centre