Balance transfer war hots up: Virgin Money slashes fee on 41-month deal
It now offers 41 months 0% interest on balance transfers with a one-off fee of 3.29%.
It comes just three months after the bank was criticised for the high 4% one-off transfer fee it charged when it first launched its 41 month interest-free balance transfer card.
The revised card also offers 41 months 0% interest on money transfers with a one-off fee of 3.79% plus three months 0% interest on purchases. It attracts a representative APR of 20.9% variable.
See YourMoney.com’s Confused about 0% credit cards? Your 60 second guide for more information.
If you’re interested in applying, you’ll need to do so soon as it’s only available until Thursday 20 October.
How good is it?
A number of 40 and 41 month 0% interest balance transfer cards have sprung up in 2016 and while some have come with high one-off balance transfer fees, this latest offering from Virgin Money makes it market-leading.
It beats the Halifax 41 month deal with an effective 3.44% fee, and the MBNA 41 month offering which comes with a 3.49% fee.
However, Andrew Hagger of MoneyComms, said there is one other balance transfer card which could entice applicants.
Last week, a new card from a brand called nuba (powered by MBNA) launched, which offers 41 months for a 3.49% fee. But it also gives you a £20 Amazon gift card (£1,000 balance or money transfer within first 60 days) which “will prove the most financially beneficial card for many people,” he said.
“For example if you switch £3k with Virgin the fee is £98.70 but with nuba it is £104.70 but when you factor in the £20 gift card, it’s just £84.70 overall.”
New Purchase and All Round card
Virgin Money today launched two other credit cards:
The new Purchase card offers:
- 27 months 0% interest on purchases.
- 20 months 0% interest on balance transfers, with a one-off transfer fee of 2.99%.
- 20 months 0% interest on money transfers, with a one-off transfer fee of 4.00%.
The All Round card has been updated, with the balance transfer fee reduced from 2.00% to 1.50% to offer:
- 25 months 0% interest on balance transfers, with a one-off transfer fee of 1.50%.
- 25 months 0% interest on money transfers, with a one-off transfer fee of 2.00%.
- 25 months 0% interest on purchases.
The new Purchase credit card is “competitive”, according to Hagger, but it’s just pipped by Tesco Bank’s 28 month 0% interest on purchases for up to 28 months.
The All Round card also goes to the top of the best buy table with its 1.50% balance transfer fee, coming above the AA’s offering of 26 months with a 2.98% fee.
Hagger said: “It seems that the level of competitiveness has moved up a gear in the last few months and consumer appetite for low cost credit continues to increase month-on-month.”