New 16 month balance transfer card launched by Virgin
With many credit card companies just as concerned about the credit crunch as we are as consumers it is surprising that there’s such fierce competition raging between them.
New 16 month balance transfer card launched by Virgin
The new card officially has the longest 0% interest deal available in the UK.”
The first to push-the-boat out is Virgin which has made a bold step in launching a new 16 month interest-free credit card.
What’s on offer?
This new card offers 16 months of 0% interest on balance transfers and is tipped to be incredibly popular despite charging a reasonably high handling fee of 2.89%.
It is currently available to those with a good to excellent credit rating. The new card officially has the longest 0% interest deal available in the UK and a typical rate of 16.6% APR.
The card comes in a choice of three different colours, red. black and pink.
Customers who choose to sign up with Virgin also benefit from extras such as discounts on Virgin Holidays, Virgin Wines, Virgin Insurance deals and other products and services.
Customers are also rumoured to receive vouchers to spend on the high street.
What at the experts saying?
Creditchoices.co.uk’s Chris Eagle said: “It is very positive that Virgin has increased its balance transfer period.
"However it should be noted that the time period for transferring your balance has been reduced to only the first 60 days.”
Even so, most people want to transfer their balances as quickly as possible and 2 months is ample time to get things in order and transfer those funds.
Offering six months of 0% interest on purchases, Virgin customers are encouraged to keep tabs on their balances online.
Fool.co.uk writer Neil Faulkner commented on the card recently in his financial blog, singled out Virgin for praise: “The problem is that each provider thinks theirs are the best, but they can't all be right.
"Virgin Money was right about its balance-transfer card – it’s a fine card. Otherwise, the claims are dubious at best.”
Adverts for the card tout free purchase protection insurance, free travel accident insurance, no annual fees and up to 50 days interest free on all card purchases, which is less than some reports are claiming.
Virgin also posits on their website that customers could save up to £214 by switching to the card with a 1,000 balance.
Since the launch of the first UK Virgin Money credit card back in 2002 the company has become a strong competitor in the credit card market.
However, it remains to be seen what difference this long 0% interest period will make to the card’s popularity.
If current reports are anything to go on, the likelihood is that Virgin will either see a huge increase in customer numbers or other companies will step up to the plate with rival deals.
Either way it’s a victory for the consumer.
Written by Max Jennings ©
