Virgin Money has launched a new credit card offering the longest 0% balance transfer period on the market.
If you have credit card debt that is racking up interest, you could switch it over to this card and pay no interest for 34 months.
Here, Which? explains how to use balance transfer deals to pay down debt and at how the new Virgin Money card stacks up to the competition.
How do 0% balance transfer cards work?
Watch the video below, where Harry Kind explains how to use balance transfer credit card deals effectively – with the aid of some moldy bread.
What is Virgin Money offering?
The Virgin Money Balance Transfer Credit Card launched on Tuesday and allows you to shift a credit card balance from another card and pay no interest for 34 months.
You will be charged a 2.7% balance transfer fee for transfers made within 60 days of opening the card or a 5% fee on transfers made thereafter.
So it would cost £54 to move £2,000 in the first 60 days or £100 if you did it after the 60-day window.
You won’t be able to shift any balance from another card issued by Virgin Money, Clydesdale Bank, Yorkshire Bank or B credit card, and you can’t use your card to repay borrowing from Clydesdale Bank such as a loan, overdraft or mortgage.
The Virgin Money Balance Transfer Credit Card can also be used for money transfers (0% for 12 months with a 4% fee for each transfer) and interest-free purchases (0% for three months) – though neither of these offers are market-leading.
If approved, you’ll be guaranteed to get the 0% balance transfer offer period, although the APR varies between 21.9% and 25.9% depending on eligibility.
To be eligible for the deal you must have an annual income of £7,000 or a household income of at least £15,000 plus a…
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