Credit Card Blog

In the latest shake up of how credit card debt is repaid Virgin Money have said that from September their credit card customers will have repayments taken off debt at high interest rates before debt at lower interest rates.

By far the majority of credit card customers do not pay off the whole of their debt outstanding each month so this rule change could save Virgin Money credit card customers about £70 a year in interest. This saving is based on a typical credit card customer with a balance transfer of £3,000 who spends £1,000 on purchases over the first year.

The credit cards affected by the rule change will be the Virgin Money Credit Card, the Virgin Money 12/12 credit card and the Virgin Money Cashback Charity Credit Card.

This credit card news from Virgin Money comes a week after similar plans were outlined by Nationwide that their customers using the Nationwide Gold credit card would have repayments allocated against higher interest rate buys first. Such structural changes to the way repayments are allocated are becoming known as positive payment hierarchies.

A spokesman for Virgin Money, said: “Changing the order of payments is the next logical step in the enhancement of our credit card range. Our aim is to make everyone who is a Virgin Money credit card customer better off and we hope this change goes some way to achieving that.”

As you can see, we at E4S are always scouring the news for subtle changes to general and student credit cards rules to try to find you the best deals on student credit cards. We regularly update our student credit card deals section where you can choose from a variety of student credit card providers. Apply for UK student credit cards through the E4S website today.

Tags : Balance transfer, Interest Rates, Nationwide, Repayment Rules, Virgin Money
This entry was posted on Tuesday, June 29th, 2010 at 11:25 am and is filed under Credit Card Rules.
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