Virgin Credit Card Cheques

magentadreamer

I was wondering about Virgin credit card cheques. I've just got a card with 12 months 0%. I have also got a car loan which has 10 months to go. I'd like to pay off the loan and instead of paying the bank I'd pay myself into a savings account then pay off the balance before the 0% expired. If I was to pay off the loan and BT the amount to my virgin card would it cost me anything to write a virgin cheque out to myself using a positive balance?

snowstorm

As far as I'm aware, virgin will charge you 2% of the transaction value for doing this, although this is usually capped (mine is up to a maximum of £50). So say you have £1000 outstanding you would be charged 2% * £1000 = £20.

I would work out the interest payable over the next ten months on the car loan then compare this figure to the charge virgin will make and go for the lower. I believe martin has written a good article covering 'Plastic card loans' which can be found here http://www.moneysavingexpert.com/cgi-bin/viewnews.cgi?newsid1094822880,81886,

Kind Regards