Completed a balance transfer but need some advice!

jb1305

Hi,

I've just got a Virgin credit card and have transferred the balance from my Halifax card to it so I can pay this off interest free.

The balance transfer to Virgin has actually transferred more than I had on my Halifax card, so the Halifax card is now in credit. How do I get this back or what can I do about this?

Also, is it possible to set up a standing order from my current account to the Virgin account? I want to pay a fixed amount every month to pay off the debt as quickly as possible.

And finally, is it advisable to close my Halifax account? I don't plan on using it again but I'm unsure whether or not I should keep it for emergencies or any other purpose? The debt I have is £1000 so not a massive amount but it I've realised I should shift it quickly and I don't want to ever end up with credit card debts again.

Thanks for any replies.

jonesMUFCforever

Spend the credit balance on something you would normally spend on anyway ie petrol or food etc .
If you only have £1k debt then yes I would keep the card for an emergency just make sure that if you do not use the card you are not subject to a dormancy charge.
Halifax seem to be sending out amended terms and conditions of their credit cards with this month's statements keep them read them and keep them handy.

Moggles_2

I've just got a Virgin credit card and have transferred the balance from my Halifax card to it, so I can pay this off interest-free. The balance transfer to Virgin has actually transferred more than I had on my Halifax card, so the Halifax card is now in credit. How do I get this back or what can I do about this?

If payment has already been credited to your Halifax cc, Virgin cannot recall it.

Lenders' procedures vary. With Halifax, the Ts & Cs specifically prohibit payments/balance transfers that place the account in credit:

7.6 You must not make payments or transfer funds from another credit card to your account, that would leave a credit balance on your account. We may return any funds that exceed the balance owing on your account to the account from which the money has been sent.

From feedback here, Halifax always insists on returning the surplus funds to the new card provider. These issues are not resolved quickly, so it pays to calculate BTs carefully so that you keep within your Ts & Cs

jb1305

When I filled out the application form online I put down that I'd like to balance transfer the full amount of my account forgetting that I'd make payments in between then and getting the new card. I'm only in credit by £24 on my Halifax card but obviously I'd rather that went off my debt than sit there doing nothing.

Moggles_2

jb1305 wrote: »

When I filled out the application form online I put down that I'd like to balance transfer the full amount of my account forgetting that I'd make payments in between then and getting the new card. I'm only in credit by £24 on my Halifax card but obviously I'd rather that went off my debt than sit there doing nothing.

The Hally takes a dim view of accounts in credit, but I would think the bank will be relaxed about a modest sum like £24. That said, I would give Card Services a call, if possible, during business hours, then you'll know for certain.

If you ring Halifax Card Services on 01315 498050, you'll avoid the perishing 0870/0845 numbers

Moggles_2

Is it possible to set up a standing order from my current account to the Virgin account? I want to pay a fixed amount every month to pay off the debt as quickly as possible.

It's possible, but you would have to arrange payment well before the payment due date, as this varies considerably through the calendar year.

It might be an idea to set up a monthly direct debit to pay at least the minimum amount required. That way, it's Virgin's responsibility, not yours, to make sure the minimum monthly repayments get there on time

YorkshireBoy

Just to mop up the loose ends...

jb1305 wrote: »

Also, is it possible to set up a standing order from my current account to the Virgin account? I want to pay a fixed amount every month to pay off the debt as quickly as possible.

Whilst it's entirely possible I wouldn't recommend it. The reason being that MBNA seem to have a nasty habit of moving the statement date and/or the payment due date, so there's every chance you'll end up making two payments in one statement cycle and none in the next...with the resultant loss of promotional rate, backdated interest (up to one month's worth), £12 fee, and associated late payment marker on your CRA file. Much better to set up a minimum payment direct debit (which, on your small debt, will be £25) and then make additional payments as and when.

The SO (or bill payment) details are shown on the reverse of your statement.

And finally, is it advisable to close my Halifax account? I don't plan on using it again but I'm unsure whether or not I should keep it for emergencies or any other purpose?

If the Virgin card will be the only other card you have then it'll be best to keep the Halifax card open, so you aren't 'forced' into spending on the Virgin card...which is an absolute no-no once you've transferred a balance to it.

Moggles_2

Is it advisable to close my Halifax account? I don't plan on using it again but I'm unsure whether or not I should keep it for emergencies or any other purpose?

Everyone should have at least one back-up card, IMO. No credit card is 100% reliable and sadly there's the ever-present possibility of fraud, which means your card could be blocked temporarily through no fault of your own or the provider. What's more, if your lender varies your Ts & Cs or cuts your limit without warning, you have an alternative to hand

From a credit rating point of view, it makes sense too. You don't have to spend on the card in order to build a nice string of 0s on credit files :cool: