LONDON, March 16, 2011 /PRNewswire/ -- Virgin Money is extending the 0% introductory period on its balance transfer (BT) credit card from 16 months to 18 months for new customers.
Once the introductory period ends it reverts to a representative rate of 16.8% APR (variable).
Balance transfers attract a fee of 2.89% and the introductory rate only applies to transfers made within the first 60 days.
The credit card continues to offer 0% on card purchases for the first three months.
Grant Bather, spokesman for Virgin Money ( http://uk.virginmoney.com/virgin/) said: "We are delighted to launch this new balance transfer credit card deal which can help make our customers better off. The new 18 month 0% balance transfer deal is great for customers who are looking for some extra breathing space to pay down their debt. A customer transferring GBP2,000 from another card with an interest rate of 16.9% could save themselves GBP415 over 18 months including the balance transfer fee of 2.89%".
Virgin Money credit cards ( http://uk.virginmoney.com/virgin/credit-cards-v3/) also incorporate contactless technology allowing customers to pay for items up to GBP15 hassle free just by holding their card to a reader without having to enter their PIN.
Representative example: 16.8% p.a. (variable) on card purchases. This is equivalent to 16.8% APR representative (variable) based on a credit limit of GBP1,200.
The introductory rate for balance transfers only applies to transfers made within 60 days of the account opening date. As the Virgin Credit Card is issued by MBNA you can't transfer a balance from another credit card issued by them.
Saving based on leaving a balance of GBP2,000 on a competitor card charging 16.9%p.a., monthly rate 1.313% would incur GBP473 in interest charges over 18 months. The new 18 month 0% interest rate deal from Virgin (monthly rate 0% interest rate) would cost GBP58 (BT fee) over 18 months, saving GBP415. Assumes no other transactions and only the minimum payments are made on both cards during the period.
About Virgin Money:
Virgin Money is Virgin's financial services arm and was established in 1995 as a joint venture between the Virgin Group and Norwich Union.
In 1997, Virgin Direct Personal Financial Services Limited launched The Virgin One Account, a joint venture with The Royal Bank of Scotland that offered the UK's first current account mortgage direct to the retail market. In 2001, RBS bought out the Virgin Group's stake in the joint venture.
Following an investment of GBP100m of new capital by WL Ross in April 2010, Virgin Money is 79% owned by Virgin Group, with 21% ownership by WL Ross.
Virgin Money currently has over 2.5 million customers and offers Payment Cards (Credit Cards & Prepaid Cards), Savings and Investment products (Stakeholder Pensions, Children's Pensions, Employers Pensions, FTSE Tracker ISA, Bond & Gilt ISA, Climate Change ISA, Cash ISA and Unit Trusts), General Insurance products (Motor, Home, Travel, and Pet) and Life Assurance products to the UK market. To apply go to virginmoney.com.
Virgin Money's business ambition is to make "everyone better off" - this philosophy underpins our approach to business by offering good value to customers, treating employees well, making a positive contribution to society and delivering a profit to shareholders.
Virgin has signed a five-year deal to be the official sponsor of the London Marathon, the biggest annual fundraising event in the world. The inaugural Virgin London Marathon was on 25 April 2010. Virgin Money, the financial services division of the Virgin Group is leading the London Marathon sponsorship with the ambition to help runners raise GBP1/4 billion over 5 years and will use its infrastructure, online capability and financial expertise to deliver that through Virgin Money Giving.
Virgin Money has signed a three-year deal to be the official sponsor of Edinburgh's 'Fringe on the High Street'. The Edinburgh Festival Fringe 2011 runs from 5-29 August. Tickets and information are available at www.edfringe.com
MBNA Europe Bank Limited (a Bank of America company) issues the Virgin Credit Card.
SOURCE Virgin Money