Virgin Credit Card

At a Glance

Virgin Credit Card

Typical APR:	16.6% APR
Purchases:	0% for 6 months
	16.6% p.a. thereafter
Balance Transfers:	0% for 16 months Includes transferring cash into a current account
	2.98% transfer fee - £3 min
Rewards:	Virgin Discounts
Interest Free Period:	Up to 50 days
Annual Fee:	£0
This card includes:
Online Account Management
Fraud Security
Purchase Protection
Travel Accident Insurance
Travel Assistance
You should only apply if you are:
• Aged 18 or over
• UK resident
• Have a bank or building society account

Review Continued...

Available in attractive pink, red or monochrome colour schemes, the Virgin credit card is packed with an array of very good features that might even see you holding onto this card past it's market-leading 16-month 0% balance transfer period.

There are plenty of tantalising Virgin-related rewards - with a list as long as your arm that includes discounts on adventure events, holidays abroad, travel, DVDs, CDs and a great deal more.

Further bonuses include free insurance and security features provided by the card's issuer, MBNA, and these apply whether you end up needing them either in the UK or travelling abroad.

Best buy 0% balance transfers

16 months at 0% is a great deal for transferring outstanding balances from other credit or store cards - helping ensure those debts don't get totally out of control - and the available credit limit is up to £50,000, subject to status.

Additionally, as one of a few credit cards, the Virgin credit card also allows you to transfer money directly to a current account - and these money transfers are included in the 0% for 16 months promotional offer.

Being able to transfer money to a current account (instead of being limited to using a 0% offer to just pay off credit cards) is a great benefit that can allow you to pay off overdrafts, small loans or any other credit facility and benefit from better managing the repayment by avoiding interest charges for the next 16 months.

Both types of 0% transfer (to a credit card or to a current account) carry a 2.98% handling fee. This is marginally cheaper than the now common 3% charge on offers of this length, and is certainly a very standard fee on any 0% balance transfer credit card.

The handling fee charged on transfers to a current account does mean, however, that this 0% facility is not suitable for spending the cash on new purchases - as this could be done on a 0% purchase credit card without having to pay a percentage fee.

It's also worth noting that balance transfers and money transfers must be made within 60 days of account opening to qualify for the 0% promotional offer.

Also, any balance remaining on the account once the promotional period ends will be charged at 18.6% per annum for balance transfers and 20.6% per annum for money transfers.

0% purchases

The Virgin credit card also offers 0% interest on new purchases - but this only lasts for the first 6 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 way payments are allocated to 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 6 months, payments will be applied first towards purchases.

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 6 months and you must repay all the purchases in full by the end of the first 6 months.

Alternatively, the easier option is simply to keep your purchases on a different, perhaps longer 0% purchase credit card - or your debit card.

Similarly, cash withdrawals will be charged interest straight away and will become trapped behind any other balance. So keep any ATM withdrawals or foreign currency purchase strictly on your debit card!

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.

Excellent insurance cover caters for travel accidents and inconveniences - mishaps like missing baggage and flight delays - and there is an emergency card replacement facility in the event of losing your card wherever you may be.

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.

DVDs, CDs and games bought from the Zavvi chain of shops are also discounted.

Although rewards should perhaps never be the basis of any decision on which card to take out, the perks on the Virgin credit card are certainly varied and comprehensive.

Final Word

The Virgin credit card is great for moving outstanding balances with its best buy 16 month 0% balance transfer deal - definitely its best selling point.

There are good benefits to be had by staying sensible with the Virgin credit card, our advice is to make good use of the balance transfer deal, but be careful with new purchases and avoid cash withdrawals.

Protection, services and rewards are all very good on the Virgin credit card, and it takes just seven to ten days to process from application to delivery through your letterbox.

Be clear and careful what you use this card for and it should prove a handy item in your wallet or purse.

Apply for a Virgin credit card