VIRGIN Money has rolled out a top balance transfer card, and if you’re accepted you’ll get an interest-free period of 29 months. The launch means it’s a joint best buy with Halifax, MBNA and Sainsbury’s Bank, which also offer a 0 per cent period of the same length. All cards apart from the MBNA account […]
VIRGIN Money has rolled out a top balance transfer card, and if you’re accepted you’ll get an interest-free period of 29 months.
The launch means it’s a joint best buy with Halifax, MBNA and Sainsbury’s Bank, which also offer a 0 per cent period of the same length.
All cards apart from the MBNA account come with a 3 per cent transfer fee, while the latter charges customers between 2.75 and 3.49 per cent but it hasn’t yet told us what customer pay which fee.
After the interest-free period is over, the Virgin Money card increases to a typical annual percentage rate (APR) of 21.9 per cent, while the other three rise to a slightly lower rate of 19.9 per cent.
On the other hand, these cards state that you could get “up to 29 months” interest-free so you could be accepted and then be given a shorter period.
While Virgin Money told the Sun it doesn’t “down sell”, meaning if you pass its requirements you’ll get the full 29 months or if you don’t, you’ll have to find another product.
Either way, it’s always important to clear the debt in full beforehand.
SHIFTING your balance can be a great way to cut the cost of your debt. But you must use them properly so you don't just add to it.
Always clear your debt – Credit card firms don’t offer these deals out of the goodness of their hearts. They rely on you not clearing your balance by the time the 0 per cent deal comes to an end so it can start charging you interest.
Always make your payments – If you don’t keep up with your monthly payments, you could lose the 0 per cent offer and start being charged interest. Always try and pay-off more than the minimum payment too to clear your debt quicker and don’t spend on the card either.
Check your deal – Like with all credit cards, you might not be offered the headline deal if you don’t have the best credit history. Use MoneySavingExpert’s eligibility calculator to see what deals you are likely to be accepted for.
If you’re unable to pay it all off on time, you could shift it to another 0 per cent balance transfer card beforehand – you can find the best cards of this kind here.
Or if you you don’t need that much time to pay off your debt, you may want to go for Natwest’s fee-free balance transfer card which offers 26 months interest-free.
This is only available to existing customers who hold a current account, savings account, credit card or mortgage with the bank.
If you’re not a customer already, you can easily become one by opening a savings account with just £1.
But be warned – lenders only have to offer the marketed deals to 51 per cent of applicants by law meaning only those with the very best credit ratings will get them.
So even if you apply and are accepted, you could be offered a smaller 0 per cent period instead and be charged a higher interest rate.
Applying for multiple credit cards will also hurt your credit score – use an eligibility checker such as one from MoneySavingExpert to see what deals you’re likely to be accepted for beforehand.
BEING in large amounts of credit card debt can be really worrying. Here are some tips from Citizens Advice on how you can take action.
Check your bank balance on a regular basis – knowing your spending patterns is the first step to managing your money
Work out your budget – by writing down your income and taking away your essential bills such as food and transport.
If you have money left over, plan in advance what else you’ll spend or save. If you don’t, look at ways to cut your costs
Pay off more than the minimum – If you’ve got credit card debts aim to pay off more than the minimum amount on your credit card each month to bring down your bill quicker
Pay your most expensive credit card sooner – If you have more than one credit card and can’t to pay them off in full each month, prioritise the most expensive card (the one with the highest interest rate)
Prioritise your debts – If you’ve got several debts and you can’t afford to pay them all it’s important to prioritise them.
Your rent, mortgage, council tax and energy bills should be paid first because the consequences can be more serious if you don’t pay
Get advice – If you’re struggling to pay your debts month after month it’s important you get advice as soon as possible, before they build up even further.
Groups like Citizens Advice and National Debtline can help you prioritise and negotiate with your creditors to offer you more affordable repayment plans
To get the Virgin Money card, you’ll need to earn at least £7,000 per year, be at least 18 years old and have a good credit rating.
Interested? First check your chances of getting accepted here. You can then apply for it online.
Rachel Springall, finance expert at comparison site Moneyfacts, told The Sun: “While the 0 per cent interest free-offer of 29 months is joint market-leading in terms of the length, consumers will find MBNA charging a slightly lower balance transfer fee.
“There are many more interest-free balance transfer offers around with lower fees, so the most competitive credit card will depend on how quickly a consumer can repay their debts and how much they are prepared to pay upfront to move their debt.
“As an example, Barclaycard have a 0 per cent for 28-months balance transfer offer and charges a 1.75 per cent fee.
“Elsewhere, NatWest has a 23-month 0 per cent balance transfer offer and charge no fee.”
Last month, Barclaycard launched a top 0 per cent credit card for debt shifting and spending.
If you’re considering applying for a personal loan or balance transfer credit card, here’s the best option for you.
You can also save £300 off your store card balance by transferring the debt to a 0 per cent credit card.
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