Virgin improves credit card balance transfer offer

January 2, 2007

If you have been searching for a long term credit card then look no further. Virgin Money are set to launch a new card which offers a 13 month interest free period which will be music to many people’s ears. However, as with everything there is also a small downside as there is a handling charge of 2.5%.

However if the handling charge does not stop you then you will be pleased to know that there is also going to be a 0% rate on all purchases for three months after the account has been opened. This is definitely going to appeal to many people, especially the ones who find it hard finding the money to pay off their credit card balances in a short amount of time.

Long period credit cards have become more and more popular as the UK has spiralled into debt. They offer the user a chance to take longer to repay the balance and it costs them less than it would with a shorter term card. This is ideal for people who do usually take longer than the shorter length cards as they will not end up in as much debt. The only problem is that when there is no charge for that amount of time, it is easy to forget about it and think you have all the time in the world to pay the purchase back fully.

After the 13 month period the interest rate then goes up to 15.9% which is what most credit card interest rates are. So, whilst the offer is a really good one, it does not last forever.

Really whether you have a long term or a short term credit card, you should always aim to pay off the debt as soon as possible. This means paying more than the minimum payments each month. That way you get out of debt quicker which allows you to spend your money on the things that you want once again.