Virgin Credit Card how does the interest work?

dave82_2

Hi,

I have a 0% intrest offer on my Virgin cc lasting until Jan 2010. I had 100 quid on this card for some train tickets which were bought before the offer came into play.

After the offer was applied I paid for a stag do and am waiting for some of the money from my mates, now I don't mind this as it is on 0% or is it!

If I pay 100 quid of my balance will this simply pay £100 of the 0% offer amount with the 100 for the train tickets bottom of the pile?

Also with general credit card usage say you buy something in month 1 for £100 then in month 2 for £100 then also pay back £100 during month 2. How would they calculate the interest? Would the initial £100 be cleared and the counter reset or do you have to clear the full balance for this to happen?

Hope this makes sense! I don't really use CC very often and always clear them but am worried this month as I am relient on getting money from others!

Cheers Dave

Any

You need to read your T&C. Some of the cards have different T&C, but usually the repayment is placed against the cheapest debt first - in your case against the 0% balance and so you will end up continuely paying interest on the original £100...

dave82_2

Cheers will check my T&Cs

td_007

dave82 wrote: »

Cheers will check my T&Cs

Look for payment hierarchy that will clearly spell how your payments are used to pay off the balances.

oscar52

MBNA has negative payment hierarchy - it will pay off your balance transfers. Any purchases will continue to accrue interest.