We’re seeing more lenders joining the buy now, pay later (BNPL) boom – and popular bank Virgin Money is one. Virgin Money now has a BNPL credit card product, Slyce. The brand says this helps its customers spread the cost of purchases up to 12 months while they build a positive credit report (if used responsibly).
Virgin Money Slyce is a new BNPL product launched by Virgin Money.
Founded in 1995, Virgin Money offers a wide range of financial products. With the boom of BNPL and the announcements of Apple and Zopa joining the game, it was only a matter of time before we saw more notable lenders announce their own products. Enter Slyce, a “fully regulated” credit card with the facilities of buy now, pay later.
Slyce aims to help you “buy now, pay better” on your terms whilst also allowing you to build up a positive credit score if you use the product responsibly and repay your debts on time and in full. However, not making repayments on time can also harm your credit score.
Before you can start shopping with Slyce, Virgin Money runs a soft credit and affordability check on you, which will not impact your credit score. If you’re approved, Virgin sets a credit limit, and then you can use your Slyce card in-store and online, wherever you are in the world.
Each month, you can choose how you want to pay your balance – in 3-, 6-, 9- or 12-month instalments. If you choose to pay in 9- or 12-month instalments, the fee is a percentage of the total amount you put into the plan. 9 monthly payments have a 7.5% fee added, and 12 monthly payments have a 10% payment fee added.
For easier control of your spending, you can download the Virgin Money app to see your credit limit, the amount you owe and what’s available to spend. You can also make use of the payment reminder feature, which sends you payment alerts.
Like all lines of credit, you should only spend as much as you can afford. Virgin Money does not charge a late repayment fee. However, late or missed repayments could harm your credit score, just as paying on time and in full can give it a boost.
If you are struggling to make repayments, contact the government’s free money advice website, MoneyHelper. Late repayments can cause you serious money problems.
Since the announcement that BNPL lenders would be releasing customers’ regular spending data to the 3 main credit reference agencies (CRAs), it comes as little surprise that Virgin Money jumped the gun and launched a fully regulated BNPL product before the official regulations were in place.
Whilst many BNPL lenders are still lining up their ducks, Virgin Money says that Slyce has a range of controls, protections and safeguards in place. If you do decide to apply for Slyce, you can also expect credit and affordability checks before you can start spending to ensure the product is right for you.
You can get 24/7 support through the app chatbox, Redi.
BNPL products can be a convenient tool to help spread the cost of purchases for responsible borrowers who understand that they are still taking out a loan, and Virgin Money’s Slyce could be a great help to many shoppers.
It is a unique product in the sense that it combines some of the best features of credit cards and BNPL facilities, including the protections and safeguards in place if purchases go awry. But the temptation to spend more for cashback and/or Virgin Points shouldn’t distract you from the fact that it is still credit and could harm your credit score if you do not make repayments.
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