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

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

Written by: Paloma Kubiak
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’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.

Flight cancelled or delayed? Your rights explained

With no sign of the problems in UK aviation easing over the peak summer period, many will worry whether holida...

Rail strikes: Your travel and refund rights

Thousands of railway workers will strike across three days this week, grinding much of the transport system to...

How your monthly bills could rise as the base rate reaches 1.25%

The Bank of England has raised the base rate to 1.25% as predicted – the fifth consecutive rise in just six ...

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.

DIY investors: 10 common mistakes to avoid

For those without the help and experience of an adviser, here are 10 common DIY investor mistakes to avoid.

Mortgage down-valuations: Tips to avoid pulling out of a house sale

Down-valuations are on the rise. So, what does it mean for home buyers, and what can you do?

Five tips for surviving a bear market mauling

The S&P 500 has slipped into bear market territory and for UK investors, the FTSE 250 is also on the edge. Her...

Money Tips of the Week