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  • FIRST POST
    • RG2015
    • By RG2015 8th Jul 17, 12:58 PM
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    RG2015
    Balance Transfer Question
    • #1
    • 8th Jul 17, 12:58 PM
    Balance Transfer Question 8th Jul 17 at 12:58 PM
    The Virgin Money website states the following in relation to their 0% balance transfer credit card;

    "Once approved, we’ll send the funds (up to 95% of your credit limit) to your other card provider the next business day, if we receive your instruction before 4pm."

    This relates to a transfer requested at the application stage. Would I be correct to assume that if I apply after receiving the card that I can transfer up to my full credit limit?
Page 1
    • bengal-stripe
    • By bengal-stripe 8th Jul 17, 1:39 PM
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    bengal-stripe
    • #2
    • 8th Jul 17, 1:39 PM
    • #2
    • 8th Jul 17, 1:39 PM
    Would I be correct to assume that if I apply after receiving the card that I can transfer up to my full credit limit?
    Originally posted by RG2015
    Regardless at what stage you ask for a transfer, you only can transfer a maximum of 95% of your available limit.

    There is a transfer charge of typically 3% to be paid. If you were to transfer all your available limit, the moment that charge hits your account, you would be exceeding your limit.
    • RG2015
    • By RG2015 8th Jul 17, 1:49 PM
    • 489 Posts
    • 229 Thanks
    RG2015
    • #3
    • 8th Jul 17, 1:49 PM
    • #3
    • 8th Jul 17, 1:49 PM
    Regardless at what stage you ask for a transfer, you only can transfer a maximum of 95% of your available limit.

    There is a transfer charge of typically 3% to be paid. If you were to transfer all your available limit, the moment that charge hits your account, you would be exceeding your limit.
    Originally posted by bengal-stripe
    Thanks for your reply but there is no balance transfer fee payable for 60 days on this particular card so this answer does not apply in my case. I am still confused as to why I can only utilise 95% of my credit limit.
    • Ben8282
    • By Ben8282 9th Jul 17, 5:17 AM
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    Ben8282
    • #4
    • 9th Jul 17, 5:17 AM
    • #4
    • 9th Jul 17, 5:17 AM
    Would I be correct to assume that if I apply after receiving the card that I can transfer up to my full credit limit?
    Originally posted by RG2015
    NO
    Thanks for your reply but there is no balance transfer fee payable for 60 days on this particular card so this answer does not apply in my case. I am still confused as to why I can only utilise 95% of my credit limit.
    Originally posted by RG2015
    Because that's the way it is. Don't be greedy. 95% is enough.
    • RG2015
    • By RG2015 9th Jul 17, 8:14 AM
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    RG2015
    • #5
    • 9th Jul 17, 8:14 AM
    • #5
    • 9th Jul 17, 8:14 AM
    NO

    Because that's the way it is. Don't be greedy. 95% is enough.
    Originally posted by Ben8282
    Now I really am confused. Why on earth give you a credit limit when it actually isn't your real credit limit.

    If I was told my salary was £30,000 and they only gave me £28,500 without any reason it is hardly being greedy to ask why.
    • zx81
    • By zx81 9th Jul 17, 8:36 AM
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    zx81
    • #6
    • 9th Jul 17, 8:36 AM
    • #6
    • 9th Jul 17, 8:36 AM
    It's to allow for fees. You may not be paying a fee in this instance, but systems are set up to cater for all scenarios.
    • RG2015
    • By RG2015 9th Jul 17, 9:21 AM
    • 489 Posts
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    RG2015
    • #7
    • 9th Jul 17, 9:21 AM
    • #7
    • 9th Jul 17, 9:21 AM
    Thank you zx81. This does have some logic but a £300 allowance for fees is a bit excessive.

    Interestingly, my Nationwide credit card balance transfer page in online banking says I can transfer my current available balance. This would take me up to my full credit limit.
    • RG2015
    • By RG2015 9th Jul 17, 9:57 AM
    • 489 Posts
    • 229 Thanks
    RG2015
    • #8
    • 9th Jul 17, 9:57 AM
    • #8
    • 9th Jul 17, 9:57 AM
    Nationwide also put the onus on me with the following statement on my online banking balance transfer page.

    "The maximum amount quoted above does not include any fees which may apply. You'll need to take into consideration the balance transfer fee when transferring a balance, so as not to go over your agreed credit limit. The fee will apply to each balance transfer you make."
    • tempus_fugit
    • By tempus_fugit 9th Jul 17, 1:30 PM
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    tempus_fugit
    • #9
    • 9th Jul 17, 1:30 PM
    • #9
    • 9th Jul 17, 1:30 PM
    And many probably don't read that caveat or do not fully understand the implications, so most card providers build it in with the 95% limit. It's different ways of doing it but clearly (from what I have read on these boards) having a built-in buffer is necessary for a large proportion of customers.
    Retired at age 56 after having "light bulb moment" due to reading MSE and it's forums. Have been converted to the "budget to zero" concept and use YNAB for all monthly budgeting and long term goals.
    • RG2015
    • By RG2015 11th Jul 17, 11:20 AM
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    RG2015
    And many probably don't read that caveat or do not fully understand the implications, so most card providers build it in with the 95% limit. It's different ways of doing it but clearly (from what I have read on these boards) having a built-in buffer is necessary for a large proportion of customers.
    Originally posted by tempus_fugit
    The more I think about this the more ludicrous it sounds. The credit limit is an arbitrary figure decided by the bank, say £10,000. They then say you can only use 95%, ie £9,500.

    Why don't they just give you a credit limit of £9,500 and forget this confusing 95% nonsense.
    • eskbanker
    • By eskbanker 11th Jul 17, 11:55 AM
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    eskbanker
    The more I think about this the more ludicrous it sounds. The credit limit is an arbitrary figure decided by the bank, say £10,000. They then say you can only use 95%, ie £9,500.

    Why don't they just give you a credit limit of £9,500 and forget this confusing 95% nonsense.
    Originally posted by RG2015
    They don't say you can only use 95%, they say that's the maximum for balance transfers. You could spend the other 5% on purchases if you chose to, so the full credit limit is available to you....
    • RG2015
    • By RG2015 11th Jul 17, 12:51 PM
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    RG2015
    Thanks eskbanker, this makes a bit more sense. Unfortunately the 0% on purchases only lasts 3 months so I will only have 95% of my credit limit at 0% interest for 24 months (less the minimum monthly payment).

    I will have to accede to Ben's advice not to be greedy and make do with the 95%.
    • forgotmyname
    • By forgotmyname 11th Jul 17, 1:03 PM
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    forgotmyname
    They could allow 100% transfers but if you fail to make the payment on time it could push you over your limit and encounter even more charges.
    Punctuation, Spelling and Grammar will be used sparingly. Due to rising costs of inflation.

    My contribution to MSE. Other contributions will only be used if they cost me nothing.

    Due to me being a tight git.
    • RG2015
    • By RG2015 11th Jul 17, 2:05 PM
    • 489 Posts
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    RG2015
    They could allow 100% transfers but if you fail to make the payment on time it could push you over your limit and encounter even more charges.
    Originally posted by forgotmyname
    It is the responsibility of the user to comply with the basic credit limit and monthly payment conditions. If I choose to utilise 100% of my limit it in no way changes my responsibility to make my payment on time. I don't need the bank to add arbitrary restrictions to the credit limit that they have given me.

    I acquired my first credit card over 39 years ago and it is only this year that I have gone for 0% cards. I am rapidly learning that all banks have quite different modi operandi.
    • RG2015
    • By RG2015 15th Jul 17, 2:59 PM
    • 489 Posts
    • 229 Thanks
    RG2015
    I registered my Virgin Money credit card today and was surprised to see that I wasn't given a balance transfer allowance of 95% of my credit limit but only 94% of the 95%.

    Therefore I am only allowed to transfer a balance of up to 89.3% of my credit limit.

    Whilst this is not a major issue it is somewhat confusing and I thought that others would be interested to know that Virgin Money operates in this unusual manner.
    • bigadaj
    • By bigadaj 15th Jul 17, 5:29 PM
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    bigadaj
    That's very odd, I could understand a 90% figure but why use a percentage of a percentage?

    Might be worth querying with Virgin money to see if they have any sensible reason.
    Last edited by bigadaj; 15-07-2017 at 9:58 PM.
    • RG2015
    • By RG2015 18th Jul 17, 1:20 PM
    • 489 Posts
    • 229 Thanks
    RG2015
    That's very odd, I could understand a 90% figure but why use a percentage of a percentage?

    Might be worth querying with Virgin money to see if they have any sensible reason.
    Originally posted by bigadaj
    Thanks. I sent a secure message on Saturday 15th but as yet have not had a response. I also did a balance transfer for the amount allowed rounded down to the nearest £100 leaving a balance transfer allowance of a few pounds. The next day my allowance increased by £330. This really does not make any sense but my overall balance transfer allowance is now a lot closer to 95% of my full credit limit.
    Last edited by RG2015; 18-07-2017 at 1:22 PM.
    • RG2015
    • By RG2015 8th Aug 17, 2:13 PM
    • 489 Posts
    • 229 Thanks
    RG2015
    I have finally received a response from Virgin Money which I am showing below.

    We can confirm you are able to transfer up to 94% of the cash available on your account. Your available cash is 95% of your available purchase balance.

    Each time I make a balance transfer the available purchase balance changes which I have demonstrated below for a credit limit of £10,000. The BT starts at £8,930 then increases to £9,410 and then to £9,494. Eventually it would reach £9,500. It does all seem a bit strange. Why not just give the £9,500 from the start?

    Initial Position
    Credit limit £10,000
    Available cash (95%) £9,500
    Available for BT (94%) £8,930

    After an £8k BT
    Available for BT (94% of £1.5k) £1,410

    After a further BT of £1.4k
    Available for BT (94% of £100) £94
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