Credit card cheques with Virgin credit card

aroughcircle

Hi guys,

I read the section on balance transfer cards, as I currently have 2 credit cards, one of which has roughly £400 out of £450 credit limit, and one has about £1100 out of £1400 limit. I stopped spending on them a while ago, but still havent been able to repay them.

I applied for (and after a few days got) the Virgin credit card, which has the 0% balance transfers until October 2009. I transferred the balances, and have put the card in a draw knowing not to touch it.

But i also got a bunch of 'cheques' with the card. However, i notice that the cheques say that they are also 0% APR / 0.000% aer until October 2009.


So, does this mean, if i write myself a cheque for £1500 for example, and cash it in my bank (or girlfriend's bank), that this will work like a 15 month 0% loan?

Obviously that means that each month, i will be putting enough money into a savings account to repay nearly £3000 (credit limit) as opposed to the £1400 balances, however I can do that.

This wont mess up the 0% on the balances will it? (Since spending is short term 0%, and this is as long as the balance transfer)

NickX

aroughcircle wrote: »

So, does this mean, if i write myself a cheque for £1500 for example, and cash it in my bank (or girlfriend's bank), that this will work like a 15 month 0% loan?

I think that this is the case, so it is an excellent idea to maximize your benefit from the 0% promotion by putting the remainder of your Credit Limit into an interest bearing account.

Virgin are quite happy to transfer funds to a Bank Account, and as the end date equates to the end date of the Balance Transfer you won't end up with any balances trapped incurring interest.

You just need to ensure that you have a plan to pay off the debt before the expiry of the 15 month deal.

clio

Yes Virgin cheques can go into any bank account at the 0% rate..
there is still a fee like there is with BT.

shaf00uk

It will cost you 2.98% to get the money transferred via a cheque and you are limited to take out 95% of your credit limit including shifted balance transfers on to the card.

Note avoid making new purchases througout the period as you may incurr additional charges. But check the small print.

I did a cheque transfer to a saving account and have put the card away in a drawer.

This benefits both parties.

1. The credit card company charges you 2.98% so they make some money
2. Depending on the interest rate on your saving account you benefit from interest over the 0% period.

NickX

shaf00uk wrote: »

1. The credit card company charges you 2.98% so they make some money

In real terms they are making loss on 2.98%