10th September 2015
Virgin Money has thrown down the gauntlet and increased its 0% balance transfer term from 36 to 37 months, the longest currently available, on its Balance Transfer Credit Card MasterCard.
As a result the card has been awarded the highest Moneyfacts product rating of ‘outstanding’.
Under the cards conditions, balances must be transferred within 60 days to be eligible for the interest-free deal and will attract a fee of 2.79%. Money transfers are also permitted, again with a 0% interest term of 37 months and an introductory fee of 4.00%, while interest-free purchases can be made for up to three months.
Standard purchases and balance transfers made after the introductory deals expire will be charged at 18.9% APR with a balance transfer fee of 5%.
Rachel Springall, finance expert at Moneyfacts said: “By announcing an outstanding interest-free balance transfer deal for 37 months – the longest term on record for interest-free balance transfers – Virgin Money propels its credit card right to the top of the Moneyfacts.co.uk Best Buys.
“However, consumers hoping to consolidate their debts must ensure that they work out the upfront cost of taking out this card, as there are other deals on the market with fees lower than the 2.79% charged here, albeit for a less lengthy interest-free term. An additional feature of this card is the offer of money transfers, which is ideal for those who want to get their bank account back into credit and avoid high overdraft fees. The same interest-free term of 37 months applies, but it carries a higher upfront fee of 4% than that charged on balance transfers. Borrowers must therefore take this into account before applying.”
Borrowers however should bear in mind that the rates will depend on their credit history: only 51% of successful applicants will get the best deal.
“Virgin Money is well established in the personal finance market and continues to offer Best Buy-worthy deals, but in this competitive market it won’t be long before another provider tries to steal the top spot for balance transfers,” added Springall.
Customers can apply online or by phone for the deal.