Virgin Money bucks balance transfer trend
While many banks are cutting back their balance transfer offers, Virgin Money has extended its 0% for 18 months promotion for another month.
We saw a boom of 0% balance transfer offers in December and January but many banks have been pulling back these interest-free debt consolidation offers now that we're past the post-Christmas period. However, Virgin Money has gone against the grain and extended its 0% balance transfer for 18 months offer on its No Annual Fee and Velocity Flyer cards. While the offer was initially slated to end in February, new cardholders can still to take advantage of the promotion if they apply before 3 April 2017.
This is good news for cardholders who want to consolidate debts and avoid interest, as many other major banks are doing the opposite and dropping the lengths of their balance transfer offers. In February, St.George shortened its 0% balance transfer offers from 18 months to 12 months across six credit cards. Earlier in January, Westpac also cut its 0% for 16 months balance transfer back to 12 months, while ANZ reduced the length of its balance transfer from 18 to 16 months.
While Virgin Money’s 18 month offer does give cardholders a chance to dodge interest costs, the cards aren't entirely free. You’ll be charged a one-off 2% balance transfer fee when you move your debt across. If you're unable to repay your balance in time, you’ll start paying interest at the revert rate of 20.99% p.a.
Virgin Money currently offers one of the longest 0% balance transfer offers on the market, only exceeded by the NAB Premium Card and it's 0% for 24 month promotion, but you would still benefit from comparing your options. The longest offer doesn’t always mean it’s the best option and you should consider other factors including the annual fee, revert rate and features that come with the card.
For a more comprehensive comparison of 0% balance transfer credit cards check out our guide.