Virgin credit card minimum payment - £25!!!

littlewren

I took out a Virgin credit card about a month ago using the special link that entitles me to 12 months balance transfer + 12 months purchases.

I logged on just now, my balance is £67 and the minimum payment they want from me is £25!!!

Surely this can't be right.

Can anyone help please?

Many thanks.

BadgerFace_2

• Your balance (if this is less than £25); or
• whichever is the greater of: £25; or 1% of your statement balance before any default charges and interest (to which we'll then add the default charges and interest).

fozmcfc

I guess the OP thought that if you made a purchase, that they had 12 months before they had to pay anything towards it.

A bit like a buy now, pay later purchase, for instance like from Very, where I bought 2 Nintendo DSL's and had 12 months before I had to make any payments on them.

I suppose on the face of it, it isn't totally silly for the OP to think along those lines.

littlewren

fozmcfc wrote: »

I guess the OP thought that if you made a purchase, that they had 12 months before they had to pay anything towards it.

A bit like a buy now, pay later purchase, for instance like from Very, where I bought 2 Nintendo DSL's and had 12 months before I had to make any payments on them.

I suppose on the face of it, it isn't totally silly for the OP to think along those lines.

No, I knew that I would have to start paying straight away, just that interest wouldn't be added for 12 months.

What I was querying was the hefty minimum payment of £25 for a balance of less than £70, which is ridiculous.

I have another credit card and I am able to pay as little as £5 per month as the minimum payment. I don't do this, I pay more, but when things are tighter I can bring it right down to £5 if I wish.

GEEGEE8

They haven't charged you interest, it's just that the minimum repayment on any balance is £25 a month.
As the previous poster said, it is easy to see in their T&C, you can't presume all cards are the same.
You shouldn't have been charged any interest, but you will have to pay at least £25 towards any outstanding balance above £25.

GEEGEE8

Being a previous bankrupt, personally I think £5 repayments are an easy way of letting debt take over you. £25 is a good amount and means you will pay the balance off quicker.
Don't mean that to come across as snotty by the way

littlewren

I'm not thick, I realise that I have to make payments straight away and I am perfectly capable of 'managing a fairly simple process.'

I asked for advice on why the minimum payment should be as much as £25 on such a small balance.

littlewren

GEEGEE8 wrote: »

Being a previous bankrupt, personally I think £5 repayments are an easy way of letting debt take over you. £25 is a good amount and means you will pay the balance off quicker.
Don't mean that to come across as snotty by the way

I agree to a certain extent, but surely as I only owe under £70 the minimum balance should be in line with that.

It seems crazy that I spend £67 and have to make a payment of £25 as my minimum payment. I've never had that with any other credit cards.

fozmcfc

I must say had I known as much as I do now about credit card payments etc, I would have used them differently, but like many I simply didn't read the T&C that well.

In the past for instance, I have withdrawn money out on cards. Cause I never read the T&C's I didn't realise the payment procedures. I thought, that if I took out £200 from the cash machine and a week later for instance made a purchase of £200, that if I made a payment of £200, it would pay off the first thing I did I.E the £200 cash withdrawal.

GEEGEE8

It's probably because banks have been criticised in the past for allowing people to have large balances and only paying a small amount, and therefore not really making a dent in the balance.

I agree, £25 does seem high, but in reality, it's for a good reason, and that is to encourage you to clear the debt quicker.

My credit card is a crappy crap credit Vanquis card for people with bad debt, and that is minimum of £5 or a %(age) of the balance.

I can see why you are suprised, but it should highlight something for you, and that is that you didn't pay attention to the terms and conditions.

I'm not perfect, and I'm sure I've done worse things than that myself, but just something to look out for in the future.

laurence_2

If things are that tight then why on earth are you borrowing on a credit card

I use a credit card all the time and I don't think of it as borrowing, more like delaying payment.

I have a Capital One cashback card so I also make money on it every month.

However I do pay it off in full every month.