Virgin Money launches record 41 month interest-free balance transfer card
The new card offers 41 months 0% interest on balance transfers and money transfers but it comes with a hefty one-off transfer fee of 4 per cent. It also comes with three months 0% interest on purchases.
Virgin Money was the first provider to launch a 40 month 0% balance transfer credit card in August 2015 and today it’s “pushed the boundaries” to a record 41 month interest-free period, but the offer is “not as good as it first appears”, according to Andrew Hagger of MoneyComms.
While Virgin gives customers an additional month to pay off their debt, the 4 per cent balance transfer fee is much higher than its nearest rivals’ – MBNA’s 40 month at 2.47 per cent and Halifax’s 40 month at 2.49 per cent.
Hagger said: “On a £6,000 balance transfer the Virgin Money 41 month card will set you back a one off BT fee of £240 compared with just £148.20 with MBNA and £149.40 with Halifax.
“Also the Virgin Card has a more expensive representative APR on purchases of 20.9% – 2% more than the other best buys from Halifax, MBNA and Sainsbury’s Bank – all at 18.9% APR.
“While long term interest free credit cards can help people clear nagging card debts more quickly, if they’re financially disciplined, too many people choose the card based purely on the longest 0% duration when opting for a shorter term may be more suitable and a cheaper option.”
See YourMoney.com’s verdict on the Halifax 24 month fee-free balance transfer credit card for more information.
He added that consumers should always ensure they make their monthly statement payments on time with these promotional card deals otherwise the 0% offer is terminated on the spot and “they could find themselves back to square one.”