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Virgin Money credit card review

THE Virgin Money credit card is well known for its lengthy 0% balance transfer offer and - while the deal has recently been reduced - it's still one of the longest 0% balance transfer deals available.

In fact, by offering 0% balance transfers for 14 months, the Virgin Money credit card is one of just a handful of cards still offering a 0% deal longer than a year.

The Virgin money credit card is also perhaps easier to be accepted for than its closest rivals and MBNA, the card issuer, is known for offering larger credit limits.

Additionally, the Virgin Money credit card is one of the few to offer a 'super balance transfer' feature.

This means that the 0% for 14 months rate also applies to money transfers - so you can move money directly to a current account as well as to other credit cards, allowing you to pay off overdrafts and small loans as well as existing credit card balances.

However you transfer your credit card balance, there is a standard 2.98% transfer fee (and a higher 4% fee for money transfers). This is normal and actually marginally cheaper than most 0% offers of this length but it is worth noting.

Finally, the Virgin Money credit card offers an easy to use online account management facility. This can be used to set up balance transfers to credit cards or money transfers to current accounts - if you choose not to arrange these transfers during application.

All in all, the Virgin Money credit card is simply one of the best credit cards for 0% balance transfers and money transfers in the UK.

Interest Rates and Fees
		Notes..
Typical APR	16.6% APR (variable)	The typical APR is the rate most people are offered.
Introductory Purchases	0% for 3 months	Payments will be applied towards 0% purchases before 0% balance transfers. When the 0% purchase period ends, payments will be applied first towards 0% balance transfers.
Balance Transfers	0% for 14 months Includes transfers to a current account (4% fee)	Must be made within 60 days of account opening to qualify. Also includes money transfers to a current account, but with a 4% handling fee. Payments are applied towards 0% purchases before 0% balance transfers, but when the 0% purchase period ends payments will be applied towards 0% balance transfers before standard rate purchases. After the 0% balance transfer period ends, balance transfers are charged at the standard rate of 18.9% p.a. and money transfers are charged at the standard rate of 20.9% p.a.
Balance Transfer Fee	2.98% (£3 minimum)	This fee applies to balance transfers. Money transfers will be charged a 4% fee.
Cash Withdrawal Rate	27.9% p.a. (variable)	-
Cash Withdrawal Fee	3% (£3 minimum)	-
Annual Fee	None	-
Foreign Transaction Fee	2.99%	This fee will be charged if you make a purchase or cash withdrawal in a foreign currency.

Rewards
		Notes..
Reward #1	Virgin Discounts and Special Offers	- Exclusive savings at Virgin Media - 10% off at Virgin Wines - 20% off at Virgin Experience Days - One month free at Virgin Active - 10% off at Virgin Holidays - 10% off at Virgin Vie at Home - Half price flights at Virgin Balloon Flights - Up to 10% off at Virgin Holidays Cruises

Cardholder Services & Extras
Online Account Management		You can log in to a website and manage your Virgin credit card account online. Optional paperless statements.
Fraud Guarantee		There is no liability or excess to pay for theft, loss or fraudulent use, whether on the Internet or not, as long as you notify MBNA as soon as your card cannot be found or you notice any unsual transactions on your account.
Fraud Monitoring		Fraud Warning System MBNA will monitor your account for any suspicious activity. They also offer a purchase disputes team and a 24/7 365 helpline.
Identity Protection
MasterCard SecureCode		An extra layer of security when shopping online. Register and set up a password-protected identity-check when you shop online with participating online retailers.
Purchase Protection Insurance		Up to £1,000 Most purchases between £50 and £1,000 will be covered against theft or accidental damage for up to 100 days from purchase when you pay with the Virgin credit card. There is a maximum claim limit of £15,000 each 12 months.
Purchase Delivery Insurance		Mail order or delivered items are not excluded from the 'Purchase Protection Insurance' policy cover.
Comprehensive Travel Insurance
Travel Accident Insurance		Up to £100,000. When you use this card to buy travel tickets you and your family will be covered against death or serious injury whilst abroad.
Travel Inconvenience Insurance
Assistance Abroad
Emergency Card Replacement		If your Virgin credit card is lost or stolen in the UK or abroad, phone a number and Virgin will do their best to send you an emergency replacement card.
Other Extras	- 24 hour UK based customer service.
Optional Extras	These are extras that you can choose, but you will have to pay for them. - Payment Protection.

Payments & Payment Details
		Notes..
Credit Limit	£1,500 assumed	Maximum credit limit is subject to status.
Interest Free Period	Up to 50 days	For purchases if you pay your balance in full and on time every month. There is no interest free period on balance transfers, money transfers or cash advances outside of any promotional interest free periods.
Minimum Monthly Payment	1% (£25 minimum)	If your balance is less than £25 you must repay your balance in full. Otherwise, you must repay the greater of: - £25, OR - 1% of your statement balance before any default charges and interest, plus any default charges and interest on the statement.
Allocation of Payments	Lower rate items » Higher rate items	Where there are two or more balances at the same promotional rate they will repaid in the following order: - The one which expires first, Then - If the expiry dates are the same - the one which started first, Then - If the expiry and start dates are the same - the one with the lowest standard rate.
Default Charges	£12	This is how much you will be charged for late payments, returned payments and if you go over your credit limit.

Card Details
		Notes..
Online Application	Yes	Remember: always ensure you meet the application requirements before applying, as getting rejected can affect your credit score.
Card Type	Classic	-
Payment Company	MasterCard	The company who provides the payment technology and infrastructure to allow you to use this credit card. Retailers and ATM machines displaying the 'MasterCard' logo will accept this credit card.
Card Issuer	MBNA	The bank who issues this credit card. MBNA Europe Bank Limited Stansfield House Chester Business Park Chester CH4 9QQ
Card Advertiser	Virgin Money	The company who advertises and promotes this credit card.

Review Continued...

It might be available in pink, red or black but the Virgin Money credit card is still more substance than style.

In fact, this credit card is packed with so many good features that you might even want to hold onto it past its market-leading 14-month 0% balance transfer period.

There's a list of tantalising Virgin-related rewards as long as your arm including discounts on (deep breath) adventure events, holidays abroad, travel, Virgin Media broadband & TV, high street shopping vouchers and more.

The card also offers free insurance and security features from the card's issuer, MBNA, which apply whether you end up needing them in the UK or travelling abroad.

0% Balance Transfer Credit Card

First and foremost, though, the Virgin Money credit card is a balance transfer credit card.

Moving a high-interest balance from an existing credit or store card to a 0% rate for 14 months could save you hundreds, if not thousands, of pounds in interest

What's more the Virgin Money credit card's money transfer facility can do the same for an overdraft or small loan.

Being able to transfer money to a current account at 0% is pretty rare and it's a great benefit whether you want to better managing repayments by avoiding interest charges for
the next 14 months or put some cash into a high-interest savings account.

However, both offers will only be valuable when you use them correctly so watch out for the following four things.

First, transfer fees: 0% balance transfers to the Virgin Money credit card carry a 2.98% handling fee and money transfers will incur a 4% fee.

It's common for balance transfer fees to be around 3% on offers of this length so this isn't unusual and the fee will certainly be less than the interest saved by moving the balance.

However, the handling fee charged on transfers to a current account does mean that the 0% money transfer facility isn't suitable for spending on new purchases; this could be done using a 0% purchase credit card without having to pay a percentage fee.

Second, balance transfers and money transfers must be made within 60 days of the Virgin Money credit card account opening to qualify for the 0% promotional offer.

Since you can transfer a balance during application or online, however, this shouldn't be too much of a problem.

Thirdly, and most importantly, remember that any balance remaining on the account once the promotional 0% period ends will be charged at 18.9% per annum for balance transfers and 20.9% per annum for money transfers.

This should obviously be avoided if at all possible.

Forth, the Virgin Money credit card has a 0% purchases period - see the next section for how this can affect a balance transfer.

This should obviously be avoided if at all possible.

Note also that Virgin credit cards are known for offering balance transfer offers to existing customers so once you've made use of the first 0% deal it's worth holding onto the account as you may be offered more deals in the future.

0% purchases

The Virgin Money credit card also offers 0% interest on new purchases - but this only lasts for the first 3 months.

If you want to use both the 0% balance transfer deal and the 0% purchase deal you will have to be careful and be aware of the allocation of payments clause which ranks the different balances on your account.

The Virgin credit card terms and conditions state that payments made to your account will be applied towards the lowest rate balance first, but where two balances are both charged at the same promotional rate (e.g. 0%), then payments will be applied to the balance at the promotional rate which ends first.

In other words during the first 3 months, payments will be applied to purchases first.

This presents the ability to use the 0% balance transfer and the 0% purchase period simultaneously and be able to pay back the new purchases before the end of the 0% purchase period - while also leaving your balance transfer at 0%.

However, if you don't pay back all of your purchase balance by the end of the 0% purchase period - it will revert to the standard rate of interest and become trapped behind the cheaper balance transfer.

In short, you can use the Virgin credit card for new purchases as well as a balance transfer - but only during the first 3 months and you must repay all the purchases in full by the end of the first 3 months.

To keep really safe it might be worth making your purchases in a different way - perhaps using a 0% purchases credit card or debit card.

Similarly, cash transactions will be charged interest straight away and will become trapped behind any other balance so keep your Virgin Money credit card away from ATM withdrawals, foreign currency purchases or gambling.

Security, protection and services

Section 75 of the Consumer Credit Act 1974 gives very good, basic protection on transactions both in the UK and abroad.

In addition, the Virgin credit card brings free purchase protection insurance covering accidental damage and theft on goods at the time of buying them for 100 days.

There's a fraud guarantee service from MBNA covering fraudulent transactions to make sure you have no liability to pay money back under such circumstances.

Rewards

High street savings at Currys, Debenhams, Sainsbury's, B&Q and Boots are available with the Virgin credit card.

There are also substantial discounts on adventure outings - such as balloon flights and parachute jumps - as well as on holidays or Virgin cruises.

Discounts also include Virgin train travel, Virgin mobile phone deals, purchases through Virgin Wines and there is an introductory month's free membership to help keep you fit at Virgin Active.

Although rewards shouldn't be the basis of a decision to get the Virgin Money credit card the perks are certainly varied enough to merit a second glance.

Final Word

The Virgin Money credit card is great for moving outstanding balances - its market-leading 14 month 0% balance transfer deal is definitely its best selling point - just be careful with new purchases and avoid cash withdrawals when you take advantage of it.

The card also offers an excellent range of protection, services and rewards and it takes just seven to ten days to process from application to delivery through your letterbox.

Apply Online for Virgin Money credit card »