School girl error? - Transfer into Bank account

Lottebear

I have have been offered a £1000 interest free transfer from Virgin credit into my bank account which I have taken with a transfer fee of £29. However I have just realised that I still owe £44 from a purchase on the card.

Am I correct in thinking that I will clear the Balance transfer first? That i am going to incur interest on £44 until I pay the transfer first?

YorkshireBoy

It depends on...

a) whether you also have 0% on purchases, and if you have

b) what your personal T&C's say in section 2f

loopyjuice_2

Lottebear wrote: »

I have have been offered a £1000 interest free transfer from Virgin credit into my bank account which I have taken with a transfer fee of £29. However I have just realised that I still owe £44 from a purchase on the card.

Am I correct in thinking that I will clear the Balance transfer first? That i am going to incur interest on £44 until I pay the transfer first?

What's the interest on that £44 going to be per month, a quid at most, hardly something to worry about is it?

Lottebear

The interest rate is 16.6%.

I was planning on putting the £1000 in a saving account paying 5.5% until April.

So in order to have made, I need to ensure I get more than the interest on the £44 and cover the £29 fee.

NickX

Lottebear wrote: »

So in order to have made, I need to ensure I get more than the interest on the £44 and cover the £29 fee.

Well the interest on the £44 is going to be around 61p per month, so I don't think you are going to lose out too much.

You should still make a profit on the deal, by try the stoozing calculator to be sure.

YorkshireBoy

Firstly, interest isn't charged until month 4, or 7 depending on the offer.

Secondly, all your minimum payments should go towards your purchases first (see condition 2f).

So, as long as your minimum payments in the first 3 or 6 months total more than £44 (and they will, at £25 per month) you won't pay any interest at all.

Lottebear wrote:

The interest rate is 16.6%.

Are you sure? The 16/6 month product at 16.6% APR was only launched on Wednesday of this week. Previously it was 15/3 months and 15.9% APR.