MSE News: Virgin Money launches 0% all-rounder credit card

Former_MSE_Guy

This is the discussion thread for the following MSE News Story:

"The lender is offering no interest on balance transfers and purchases for a year via a price comparison site as part of a trial..."

Read the full story:
Virgin Money launches 0% all-rounder credit card

Update: 17 March. But tomororw, it will make it permanent

Virgin Money makes 0% all-rounder credit card permanent

runmichellerun

Doesn't this just encourage people to get in more debt? Defeats the object of balance transfers really.

tiff

Well hopefully it encourages people with expensive debt to transfer it to the 0% card. I dont understand your comment?

Dabooka

runmichellerun wrote: »

Doesn't this just encourage people to get in more debt? Defeats the object of balance transfers really.

Or maybe it allows easier payment of planned expensive purchases. Might be quite enticing to some.

CannyJock

runmichellerun wrote: »

Doesn't this just encourage people to get in more debt?

Can see what you're saying but that's potentially true of any credit. I've got no doubt that MBNA are hoping it will

To use it sensibly, you'd transfer your balance onto the card and then use it for your normal purchases until it's maxed out. You pay back the minimum during the 0% promotion period, and put every penny you would normally have spent on it into a higher interest savings account. Before your 0% period ends you take your savings and the accumulated interest and use it to pay the balance in full (or as much as you can).

With the low 1% minimum payment you've got an ideal chance to build your savings up to pay as much off your debt as possible.

runmichellerun

tiff wrote: »

Well hopefully it encourages people with expensive debt to transfer it to the 0% card. I dont understand your comment?

If you were only going to use it just to transfer your debt then surely you'd use the 16 month BT card from Virgin, not one that lasts 12 months.

CannyJock wrote: »

Can see what you're saying but that's potentially true of any credit. I've got no doubt that MBNA are hoping it will

To use it sensibly, you'd transfer your balance onto the card and then use it for your normal purchases until it's maxed out. You pay back the minimum during the 0% promotion period, and put every penny you would normally have spent on it into a higher interest savings account. Before your 0% period ends you take your savings and the accumulated interest and use it to pay the balance in full (or as much as you can).

With the low 1% minimum payment you've got an ideal chance to build your savings up to pay as much off your debt as possible.

I personally think this is aimed at people who have debt already, and are likely to add a lot more onto the card. Some people in debt don't have the willpower to say no to 0% credit. They're likely to be the ones who fall victim to this.

Like you say though, that's what MBNA wants.

Dabooka

Blimey, what a negative attitude you guys have. Maybe Virgin are just trying to be nice, trying to be kind, in these difficult times! :rotfl:

Any

runmichellerun wrote: »

Doesn't this just encourage people to get in more debt? Defeats the object of balance transfers really.

That is probably about the same claim as saying that BOGOF offers encourage people to get fat...

And how about people who need BT and protection on their purchases or one off larger purchase but don't want to apply for 2 different cards in short period of time?

Any

runmichellerun wrote: »

Some people in debt don't have the willpower to say no to 0% credit.

So the rest of society shouldn't have the option either...??

markne

I already have a virgin credit card and regularly get new balance transfer deals offered (some of which I have used) - one thing they always make a point of stating, which I double/treble check, is that they apply payments to the MOST expensive debt first (which is what is sounds like the nationwide card does) Or the balance transfer deal which expires first.

I'm now slightly concerned as the article suggests this isn't the case - though every advisor I have ever spoken to has been very clear about it.

runmichellerun

Well, it is only my opinion. Not saying that I'm right or wrong.

And I admit I'm in a rather cynical mood today