Beware of massive rate hikes (Virgin Mastercard)

Member Name: custard1975

Product:	Virgin Mastercard
Date:	11/11/08 (81 review reads)
Rating:

Advantages: Has good long intro 0% deals

Disadvantages: Bad customer service and high rate hikes

Well like many people I applied to Virgin for their 0% balance transfer offer. I was accepted and was given a high credit limit. I never used the card for purchases at all, instead kept it just for the 0%. I have an excellent credit rating and always paid above the minimum payment and always on time. At the end of the 0% they offered another 0% deal which I thought was great. The other advantage was that if you wanted to make only the minimum payment it was only the interest plus £5 each month so if you were on a 0% then yes the min payment was £5. I thought I was onto a winner until at the end of the 0% they suddenly hiked the standard rate to 20% which I thought was rather steep particularly as I always payed on time and had a good credit history. Then a couple of months later they hiked it again to 25%. This I was really annoyed about as there was no justification other than they thought that as I was a loyal customer they could rip me off. I telephoned there less than helpful customer services and they lowered the rate by 2% to 23%...wow! However 2 months ago came the final straw when I received a letter saying the rate was going up to 30%. I have now closed the account. There is no justification for this blatent rip off of the consumer. Unless you can say that you will definately pay off the balance at the end of your 0% then I would aviod this rip off at all costs. Beware.

Summary: Ok if you pay off at the end of 0% deal, otherwise be careful.