Virgin Credit Card - A Not So Good Deal (Virgin Mastercard)

Member Name: Anth-21

Product:	Virgin Mastercard
Date:	31/12/08 (73 review reads)
Rating:

Advantages: 0% for 16months

Disadvantages: Rate can increase to 34.9%

The Virgin Credit Card is marketed with a very attractive 0% for 16 months (2.98% transfer fee applies) and will appeal to many. When you look at the homepage you will also see that the typical rate is 16.6%. So on the surface it looks like a brilliant deal for those looking to transfer expensive credit card debt to a cheaper card.

However, I fell into this very clever trap. As a warning to others, if you happen to miss a payment during the promotional period you can expect the rate to increase dramatically when the promotion ends. The rate I was given was a shockingly high 34.9%, a not so typical rate (although many others seem to be in the same position).

The rate pulls you in but the consequences are far greater if you end up trapped on such a high rate and refused credit from other providers (therefore being unable to transfer to cheaper cards in the market).

The card is operated by the giant American bank MBNA. They have now committed themselves to the Govenrment's new clampdown on high credit card charges. Although this only means they won't increase your rate without a mimimum period of notice.

Think long and hard before committing yourselve to this deal; as far from solving your money problems it could make things much much worse.

Summary: Think long and hard about this card