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Virgin Money has announced three new balance transfer credit cards that come with a £50 "Experience Day" voucher that can be spent on attractions, dining out and spa days.
The new 34-month, 30-month and 28 month cards all offer 0pc interest on balance transfers made within 60 days of opening the account. One-off fees of 1.49pc, xxpc and xxpc respectively apply.
A one-off balance transfer fee applies to all three cards: the 34 month card charges 1.49pc. A fee of 0.89pc is applied to transfers made with the 30 month card whereas customers will face a lower 0.89pc charge with the 28 month card.
The three cards also offer 0pc on money transfers, although a one-off 4pc fee applies.
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The £50 Experience Day voucher is offered to the first 8,760 customers who apply for any of Virgin’s credit cards through its website before February 29. Some of the £50 experiences include afternoon tea for two at the Royal Albert Hall, a spa day for one or entry to the Eden Project for two adults.
To be eligible, customers must transfer or make a purchase on the card of at least £1,000 within 60 days.
Verdict
Two of Virgin’s balance transfer cards, the 34-month and 30-month, offer "market-leading" balance transfer fees – but they are the only cards on the market to offer these durations, so there are no exact competitors.
Customers who feel comfortable with a shorter term could benefit from lower fees. For example, TSB charges a one-off balance transfer fee of 0.7pc for borrowers who can pay off their debt in 28 months. This card beats Virgin’s latest 28-month offering.
For those who are more likely to make a money transfer than balance transfer, Virgin has 36-month and 32-month cards that also offer 0pc interest and lower fees than its new credit cards. Customers will be charged a one-off money transfer fee of 2.39pc with the 36-month card, and 1.69pc for the 32-month version.
Money transfers allow you to borrow money on the card and pay it straight into your bank account. Martin Lewis, the MoneySavingExpert.com founder, has described them as the “hidden weapon to cut loan and overdraft costs”.
The balance transfer market is in constant flux and new cards are being launched all the time. David Black of financial consultancy company DJB Research said Virgin’s additional reward might "tip the balance when consumers are deciding which card to choose".
He added: “What providers hope you’ll do is use the card for other purposes on which they can charge interest or fees, and that you’ll remain with the card beyond the introductory 0pc period, at which time the typical ‘go to’ interest rate is 18.9pc.”
Customers should also beware the terms and conditions with balance transfer cards.
Mr Black added: “If you miss a monthly repayment, make a late repayment, don’t pay at least the minimum monthly repayment or exceed your credit limit, the 0pc introductory rate deal you’re enjoying may get cancelled.”
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