Virgin Credit Card - Have I got this right?

jood_2

Hi,
I want to borrow £2,000. Rather than get a loan and pay interest I thought about applying for the Virgin credit card at 0% for 16 months and withdrawing the credit to my bank account in a lump sum.

Am I right in thinking this can be done?

So assuming I pay back at least £135 per month for 15 months this would be like an interest free loan. Or I could pay the minimum and save the difference until the end of the interest free period and pay the remainder back in a one go. Is that correct?

Any better suggestions?

Thanks in advance.

cifpower

Yes you are right. Virgin (from MBNA) is one of the cards that allow you to perform a Super Balance Transfer. There is a fee of 2.98% when you do the transfer. You can make equal monthly payments or make minimum payments and save the rest.

jood_2

Thank you! I just wanted to check I had it right before taking the plunge.

97trophy

remember at the end of the interest free period your APR will jump. Some are now paying 35%.

KKevin_2

Is there a limit?

Or does it depend on individuals circumstances?

cifpower

KKevin wrote: »

Is there a limit?

Or does it depend on individuals circumstances?

A limit on what?

YorkshireBoy

There's no maximum as such, but any 'mainstream' lender charging more than 34.9% APR would see some serious interest (pardon the pun!) from the OFT I'm sure.

KKevin_2

A limit to how much money you can borrow for a cash advance?

cifpower

KKevin wrote: »

A limit to how much money you can borrow for a cash advance?

The limit is the credit limit given to you minus the balance transfer fee

YorkshireBoy

95% of your credit limit. Sometimes that's plus the fee, and others it includes the fee...depends on the CSA you get.

gratefulforhelp_2

You prob won't get the whole amount, but 95% of your credit limit made up by balance transfer and fee sounds right. I have done it and they are v. efficient. Make sure you set up a DD for min payment and as a health warning, read the stuff on here about MBNA who administer the card, their rep is less than perfect.