OUR BOTTOM LINE
The Virgin Money All Round Credit Card could help you to reduce interest payments on existing debt. It also stacks up well versus other 0% APR credit cards, since it offers a 20-month introductory 0% interest rate on purchases. Its range of rewards and offers could make it appealing to a broad range of consumers.
Credit Rating Requirement: Good/Excellent
What I like
- Introductory 0% APR on purchases – The card offers a 20-month introductory 0% interest rate period on purchases. This could make it appealing for consumers who either have a large upcoming purchase or who are among the 40% of credit card holders who do not pay off their balance in full each month. The savings from having an introductory 0% interest period versus having a credit card that has an APR of 18.9% on a £1,000 balance over the 20-month period would be £315.
- Balance transfer offer – The Virgin Money All Round Credit Card has a 23-month 0% interest rate period on balance transfers. This could make it attractive to consumers who wish to reduce the amount of interest they pay on existing debt. For example, having a £2,500 balance at an APR of 18.9% with monthly repayments of £200 could save a consumer £206 in interest costs from taking up the balance transfer offer. This includes the balance transfer fee of 2.9%. They would also repay their debt one month early by transferring their balance to the new card.
- Money transfer offer – The card also has a 23-month 0% interest rate period on money transfers. This may make it a realistic option for consumers who are considering a personal loan. When compared to a personal loan of £2,000 with a 9.9% interest rate, an interest saving of £105 could be made by utilising the card’s money transfer offer over a 23-month time period. This includes a 4% money transfer fee.
- Rewards – Cardholders can access the Virgin Money Back website, which provides cashback offers on over 500 well-known brands. They include Apple, Tesco, Expedia and a range of other retailers that offer cardholders the opportunity to save money on everyday spending. Registering for the Money Back programme is straightforward, with it having a dedicated website that clearly lists the various offers and cashback deals that are available to cardholders. The card also offers a variety of discounts on products and services from other Virgin Group companies.
- No annual fee – The card does not have an annual fee. This could make it appealing to consumers who intend to use it regularly, as well as occasional users.
Why trust me
I have been writing for The Motley Fool since 2013, and have experienced the booms and busts of the UK economy for a number of decades both as an investor and a consumer. I have held various senior management positions during my career, while also setting up my own manufacturing company in 1996. It was subsequently sold in 2007. I have a keen interest in consumer finance, as well as in the stock market.
What could be improved
- Fees – While a 23-month balance transfer period is relatively generous, a 2.9% balance transfer fee makes the card less appealing. Likewise, the card’s 4% money transfer fee may make it less attractive when compared to a personal loan. For consumers who are intending to repay their existing balance or debt over a short period, it may be worth factoring in the respective fees to check that conducting a balance transfer or money transfer will lead to savings on interest payments.
- Foreign transaction fee – The card charges a foreign transaction fee of 2.99% when used to pay for goods or services in currencies other than sterling. Over time, this can lead to a significant cost for even occasional travellers. Therefore, a travel credit card may be worth having in addition to the Virgin Money All Round Credit Card.
How does it stack up?
At the time of writing, it is possible to obtain a longer 0% interest period on balance transfers and money transfers from other credit cards. Likewise, a longer introductory 0% interest rate period can be found elsewhere.
However, where this card has appeal versus its rivals is in terms of the breadth of its offering. It has a generous interest-free period on purchases as well as balance transfers and money transfers. Therefore, it offers an opportunity to reduce interest payments on existing as well as future credit card balances.
It also offers a generous rewards scheme through its Money Back programme. This could lead to significant savings over the course of the year on everyday spending at a range of well-known retailers.
The card’s lack of sign-up bonuses may mean that other cards provide a greater incentive for consumers to switch to them. Similarly, it may lack appeal for international usage.
However, as an all-rounder, the card stacks up well compared to many of its rivals and could offer significant savings on interest payments over a prolonged period.
Credit score
Applicants for the card should have a good credit rating. The Virgin Money website has an eligibility tool which may provide an indication of the likelihood that you will be accepted for the card.
As with all credit cards, the advertised interest rate, interest-free period and other features are representative. This means that by law they must be offered to the majority of successful applicants. A large minority of successful applicants may receive less favourable terms that make the card less appealing relative to its rivals.
How to apply
Applications for the card can be made online, with the process generally taking around ten minutes to complete.
When applying, information such as your address history, financial situation, details of other credit cards you currently have and your employment information will be needed. It is therefore worth having these details to hand before starting the application process.
Applicants for the card should have an annual income of at least £7,000, be resident in the UK and have a UK bank or building society account.
Is the Virgin Money All Round Credit Card right for you?
If you are looking to reduce interest payments on either future purchases or existing debt, other credit cards with longer 0% interest periods may be more attractive. Similarly, credit cards with lower balance transfer and money transfer fees may be more appealing for consumers who are likely to repay their existing debt in the short run.
However, if you are looking for a credit card that offers a generous 0% interest rate period for balance transfers/money transfers and future purchases, as well as a diverse range of cashback opportunities, the Virgin Money All Round Credit Card could be of interest.
You may need a travel credit card to reduce fees while abroad; however, in terms of reducing interest payments over a generous time period, it appears relatively attractive.
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