Credit Card Cheques

jay78

I believe MBNA/Virgin is one of the few companies to do this. Can I write them to myself and pay them into my account? Also, are they counted as a purchase or cash advance attracting interest?

Thanks

lkoky

I have a visa from them as well (via A&L), they start sending me these cheque after one month I got the card.

Got a bit annoy with that wrote them a letter to tell them to stop sending these cheque and three weeks later got a reply mail apologising and promise they will cease sending cheque to me.

Joe_Bloggs

Tear them up if you do not understand the terms and conditions that relate to them. I used to have MBNA products but they became too expensive. I can't comment on current terms and conditions. I felt that these cheques could have been intercepted and spent on my behalf when I used to get them. I was reassured by regular internet monitoring of my credit card accounts.
J_B.

Browntoa

these count as cash advance

YorkshireBoy

You'll find the answer to your questions in the respective product summary boxes.

For example, Virgin cheques are 0% for 9 months during your introductory period, and 15.9% (typical) otherwise. In both cases, there's a 2% (max £50) fee for their use.

If you're outside the introductory period, the interest accrues from the date the cheque is processed by Virgin.

Yes, you can write them out to yourself, but make sure you fully understand what you're doing first.

http://uk.virginmoney.com/credit-card-v1/pre-apply.html

UNICORN_2

Mint still counted them as a transfer, not cash advance, when I took out my card a couple of months ago

$17mma

Read Martins article on credit cheques. Scroll down to mid way the page.

http://blog.moneysavingexpert.com/

jay78

I've just read the blog. However, the virgin cheques are treated as purchases and not as a cash advance.

I don't mind the the fee that much because it means I can borrow £1,500 cash (I do need cash) over 9 months and pay it off in full having only paid £30 in fees. If I was to take out a loan for the same amout over the same period, the cost would be £128.

YorkshireBoy

jay78 wrote:

...the virgin cheques are treated as purchases and not as a cash advance.

The Virgin cheques are treated as...cheques! The closest comparison is Balance Transfers. Did you read the link that I provided for you earlier?

I don't mind the the fee that much because it means I can borrow £1,500 cash (I do need cash) over 9 months and pay it off in full having only paid £30 in fees. If I was to take out a loan for the same amout over the same period, the cost would be £128.

Is this a card you are planning to apply for, or one which you already have? If you already have it, are you in your 0% intro period or not?

jay78

YorkshireBoy wrote:

The Virgin cheques are treated as...cheques! The closest comparison is Balance Transfers. Did you read the link that I provided for you earlier?Is this a card you are planning to apply for, or one which you already have? If you already have it, are you in your 0% intro period or not?

They attract the same interest as purchases is what I meant and yes I've just applied for the card. As I intend to pay off the amount in 6 or 7 months the interest isn't an issue. I was just concerned that the cheques would attract interest from day 1 as do cash advances.

jonesMUFCforever

MBNA have sent me some cheques quoting 0% until March 2007 statement (They mean end of Feb 2007 I suppose as I will have to repay by statement date to get it free) with a fee of 2% (min £2 max £35).
I will probably take them up on this.
This card has not been used for more than 4 years and I was going to get it cancelled.