Virgin Money has relaunched its 40-month 0% balance transfer credit card, meaning you can shift over existing card debt and avoid paying interest on that debt for more than three years.
It also means the Virgin credit card offers the longest 0% balance transfer deal on the market, alongside the Tesco Bank Clubcard credit card for balance transfers and the Halifax Balance Transfer credit card.
However, the Virgin card has a lower fee of 2.59% (min £3), compared to Tesco's 2.69% and Halifax's 2.9%.
The Virgin card is available until 12pm on April 1, while the Tesco card is available until April 28 and the Halifax card until March 31.
What to watch out for
To qualify for Virgin's 40-month interest-free period, you must transfer over your balance within 60 days.
Once the 40 months are up, you’ll start paying interest at a rate of 18.9% pa (variable), so be sure to clear your balance before then. The card has a representative rate of 18.9% APR (variable)*.
Don't forget to factor in the transfer fee of 2.59%. So, for example, if you were transferring a balance of £2,000, you’d pay a fee of £51.80. If you were transferring £4,000, you’d pay £103.60. (Be aware the fee rises to 5% after the first 60 days.)
And keep in mind you can’t transfer balances across from an existing Virgin credit card.
With the Tesco card, you must transfer over your balance within 90 days and once the 0% period is up, you'll pay 18.9% pa (variable). The card has a representative rate of 18.9% APR (variable)*.
If you opt for the Halifax card, again, transfers need to be carried out within 90 days and you must also transfer at least £100. Once the 0% deal ends, you'll pay 18.95% pa (variable) and the card has a representative rate of 18.95% APR (variable).**
Is this the right deal for you?
If you have a lot of debt to clear, chances are you’ll need as long as possible to pay it off and Virgin Money, Tesco Bank and Halifax offer the longest interest-free balance transfer deals on the market.
However, if you’re confident you don’t need as long as 40 months to pay off your debt, it could be worth choosing a card with a shorter 0% offer, but a lower transfer fee.
For example, the Barclaycard Platinum 32 months balance transfer card offers 0% on balance transfers for 32 months, but it has a much lower fee of 0.72% (providing you carry out your transfers within 60 days, otherwise the fee rises to 3.5%).
A 0.72% fee works out to be £14.40 on a debt of £2,000 or £28.80 on a debt of £4,000, so it’s cheaper than the Virgin card - so long as you clear your balance within the 0% window.
If you don’t pay off your balance before the 32 months are up, you’ll pay 18.9% pa (variable). The Barclaycard has a representative rate of 18.9% APR (variable)*.
Alternatively, if you can pay off your balance within an even shorter 23 months, Halifax offers a 0% balance transfer card with no fee, so long as you shift your debt over within 90 days.
Once the 23-month 0% window is up, you’ll be charged 18.95% pa (variable). The card has a representative rate of 18.9% APR (variable)**.
If you’re unsure which card is best for you, our balance transfer calculator weighs up your debt against the monthly payment you can afford to make to help you find the best option for you.
Check your credit score
Finally, it’s important to be aware that to qualify for the Virgin credit card, you’ll need a top-notch credit score.
If you’re not sure what your credit score looks like, our guide will show you how to find out.
We’ve also got some top tips to give it a boost.
*Representative Example: If you spend £1,200 at a purchase interest rate of 18.9% p.a. (variable) your representative rate will be 18.9% APR (variable).
**Representative Example: If you spend £1,200 at a purchase interest rate of 18.95% p.a. (variable) your representative rate will be 18.9% APR (variable).
All credit cards are subject to status and terms and conditions. Over 18s, UK residents only. Terms and conditions apply. See MoneySuperMarket.com for further information.
Please note: any rates or deals mentioned in this article were available at the time of writing. Click on a highlighted product and apply direct.