Virgin Money – first credit card to go beyond 40 months – but watch the fee and ‘go to’ rate

Andrew Hagger of comments on the latest moves in the credit card market.

Virgin Money were first to launch a 40 month 0% balance transfer credit card last August, however today it has pushed the boundaries to a record 41 months interest free, but the offer is not as good as it first appears.

Whilst the card offers a 1 month longer term than rivals MBNA and Halifax, it comes with a hefty balance transfer (BT) fee of 4% compared with just 2.47% MBNA and 2.49% Halifax.

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.

Whilst 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.

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.


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