Virgin 0% BT deal ends... they up my rate to 25.7% (instead of standard 15%)!

LoveFool731

Hey guys,

I took out a 0% deal 15 or 16 months ago, direct debit payment, so all was going well.

Then the month before my 0% rate ends, they send a letter saying there is to be a change of rates. Balance Transfers from my following statement will be charged at 2.1413% per month.

I knew the rate was going to revert to normal, but "normal" has previously been 1.1678% for everything except "cash withdrawals".

Grrr!

staffie1

Don't worry about it. Transfer the balance somewhere else. Be a tart!

LoveFool731

Yeah, just looking into the optimal card(s) to be involved with the tarting.

Turns out i was wrong, my rate hasn't reverted to 25.7%... it's gone to 28.9%.

According to the virgin customer service bloke... "it's on a variable rate which means we change it".

Goddamn not on that they're advertising their standard rate on the website as 16.6%... but the rates are different once your 0% period ends. No wonder they kept sending me cheques every month (which I didn't use) to add more to the 0% before it ran out.

So... "Typical Rate (variable)" seems to have more than one definition.

Moggles_2

Regardless of anything you're told over the phone, it's what's in writing that counts. To be fair, you've had almost 16 months at 0%, which must have saved you loads of money.

As above, I would transfer any remaining balance to another 0% BT card, PDQ.

Which card's best depends, to some extent, on which cards you have already or have held recently.

Which credit card(s) - besides Virgin - do you have at the mo?

LoveFool731

Moggles wrote: »

Which credit card(s) - besides Virgin - do you have at the mo?

All of them!

(Virgin, Amex, Abbey, HSBC, Tescos, Barclaycard).

I've just cleared off an Abbey card, so hopefully they'll offer me a good deal to swallow a good chunk of it. Though to be honest, just about any card offers better than 29%. I think Amex even charges 24% for cash.

Looks like a good long hour of studying bank / loans / cards / wage / bills is in order to optimise a bad situation.

Moggles_2

LoveFool731 wrote: »

All of them!(Virgin, Amex, Abbey, HSBC, Tescos, Barclaycard). I've just cleared off an Abbey card, so hopefully they'll offer me a good deal to swallow a good chunk of it. Though to be honest, just about any card offers better than 29%. I think Amex even charges 24% for cash. Looks like a good long hour of studying bank / loans / cards / wage / bills is in order to optimise a bad situation.

13 months at 0% is currently available to new customers from Halifax on balance transfers made in the first 90 days. There's a 3% BT fee.
Minimum monthly payment is just 1% of the balance shifted

http://www.halifax.co.uk/creditcards/pluscard136.asp

LoveFool731

Mmmm... will have a look into the Halifax one... though... at 6 cards... don't they start saying "mmm... not this time mate"?

staffie1

not necessarily. Depends what your status is (income to debt ratio, etc) although the cumulative balances and credit limits of 6 cards is probably considerable.

Moggles_2

LoveFool731 wrote: »

Mmmm... will have a look into the Halifax one, though at 6 cards, don't they start saying "mmm... not this time mate"?

Obviously, we don't know your annual income or your available credit, but if you have six credit cards in total, this isn't excessive. I believe the national average is five and many of us here have ten or more on the go.

In addition to the number of accounts in use, lenders look at the extent their credit limits have been utilised. Maxed out accounts make you look stretched so, if you're going to apply for market-leading BT cards, it's wise to leave some headroom

Typhoon2000

In case you cant get another cc with a low rate, you may want to take the option of freezing the old rate untill the card is paid off and close card option they give you. BTW you can probably expect the rate to go to 34.9% in 6 months if mine and othees experience is anything to go by.

minimike2

Virgin did the same to me, but luckily my initial 0% had already run out and I had cleared the balance then negotiated a 9 months at 2.9% deal - so given me some time with a low rate. Looking to shift it to the Halifax card - Just got approved with £4k limit for it today so they must have plenty of funding to back them. Wonder if Virgin will then offer another deal.... i think not this time, they obviosuly want to get rid of people. Odd if you ask me considering the current offers they have... must be costing them a fortune.