21st August 2015
Virgin has launched the first ever 40 months 0% balance transfer credit card.
The card offers 40 months interest-free on balances and transfers and which comes with a one-off transfer fee of 2.99% of balance transferred and 4% on money transfers.
The introductory rate applies to any balance and money transferred to the card within the first 60 days of opening the account.
Holders will also receive three months of interest-free purchases as part of the deal.
The card has been launched to mark Virgin’s 20th year in business and the card is being issued as a retro cassette style.
John Natalizia at Virgin Money, said: ‘Virgin Money has spent the last twenty years disrupting UK financial services, and we are delighted to continue that tradition with the launch of our 40 month credit card.
‘Our new card offers customers a market-leading interest-free period for both balance and money transfers. As with most chart-toppers, it will only be there for a limited period and we’re limiting ours to twenty days, so anyone interested will need to act quickly.’
The card can be used to make transfers straight into a bank account allowing those with bank overdrafts to pay it off using their credit card and get rid expensive debt.
Kevin Mountford, head of banking at MoneySuperMarket said the launch was a ‘battle cry’.
‘This interest free period is a massive four months longer than the competition. Since returning to the credit card market, Virgin Money has firmly placed itself in the best buy tables and this change is another example of its appetite to standout in the credit card market,’ he said.
‘Virgin Money has launched this card to celebrate 20 years in business and the offer is only available for 20 days so consumers need to act quickly if they want to make the most of the deal. However, consumers shouldn’t be lured by the headline length without considering whether it’s the most suitable way to pay off their debt. If they are able to settle their debt more quickly, a card with a lower fee will be cheaper. Customers should pick a card that suits their needs and ensure they can pay it off within the offer period to avoid high interest rates further down the line.
‘This is clearly great news for many consumers with debt which they are not able to comfortably pay off in three years or less. Now the 40 month barrier has been broken, it’ll be a case of watch and see how the other credit card providers react and if any of them will go even further, and if so, how far.’