Money News

New Abbey credit card vies for Virgin’s top spot

Wednesday, 4 March 2009

Writes Hazel Cottrell
hazel.cottrell@consumerchoices.co.uk

Abbey’s new credit card challenges Virgin’s best buy status, with its matching 0% balance transfer deal and slightly lower APR.

Virgin’s position at the top of the best buy credit card tables is now in question, following the launch of Abbey’s (www.abbey.com) new credit card.

The Abbey Credit Card, available from today, offers:

• 0% on balance transfers for 15 months (with a balance transfer fee of 3%)
• 0% on purchases for three months
• A low APR of 15.9%

Personal debt continues to increase in the UK and Michelle Slade of Moneyfacts (www.moneyfacts.co.uk) said of the card: “It offers a real option for those looking to get their credit card debt back in order.”

According to research from Abbey credit cards, three million Brits plan to transfer their credit card balances (totaling over £7billion) in the coming months.

Virgin’s (www.virginmoney.com) credit card, which has been the best buy credit card for months, offers a matching 15 month 0% deal on balance transfers and a longer (six month) 0% deal on purchases, but has a slightly higher APR of 16.6%.

Chris Eagle, commercial manager at CreditChoices.co.uk said: “To be honest, there’s not much between the Abbey and Virgin credit cards and it’s difficult to say which should take the crown.

“Importantly, they both have 0% on balance transfers deals for 15 months. However, they offer different additional perks – Abbey’s card has a slightly lower APR whilst Virgin’s offers a longer 0% on purchases deal as well as Virgin discounts.

“If you are looking to save money by transferring your current balance onto a 0% deal, either of these cards would be a great choice.”

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