You are here: Home - Credit Cards & Loans - News -

Virgin Money launches record 41 month interest-free balance transfer card

0
Written by: Paloma Kubiak
19/07/2016
Virgin Money has launched a record 41 month interest-free balance transfer card but it has been criticised by one industry expert because of its high fees.

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.”

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

ISAs: your back-to-basics guide for 2018/19

Here’s everything you need to know to make the most of your unused ISA allowance ahead of the 5 April deadli...

A guide to Sharia savings accounts

A number of Sharia savings products have upped their game in recent months, beating more familiar competitors ...

Five ways to get on the property ladder without the Bank of Mum and Dad

A report suggests the Bank of Mum and Dad is running low on funds. Fortunately, there are other options for st...

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Money Tips of the Week

Read previous post:
BLOG: What the Turkey coup attempt means for investors

Fund manager Ghadir Abu Leil Cooper of Baring Asset Management looks at the investment implications of last week’s failed military...

Close