Running two 0% promos at same time....

Iand1

Question,

if you had say £1000 on a 0% offer till Dec,

you then put £1500 now on another 0% offer that expires in May.

Come Dec, you pay off £1000.

will this clear the original offer or not?

whats everyones experience?

YorkshireBoy

Iand1 wrote: »

whats everyones experience?

In general, or do you have a specific card in mind (that you've forgotten to mention)?

Iand1

in general, for the usual players, MBNA, RBS Halifax if poss

YorkshireBoy

Is this because you're planning to apply for one of these products or do you already have them?

Iand1

I've got the virgin at the moment.

The current offer expires 10th Dec, outstanding balance will be cleared before then.

But got new offer till oct 2011, so want to do that now.

The problem I see is that I pay off the old offer at beginning of Dec, and will this money go towards old offer or new one?

Plus Halifax keep doing the same, so was looking at this for future ref.
Thanks

YorkshireBoy

Iand1 wrote: »

I've got the virgin at the moment.

See your T&Cs, section 2, specifically 2g (and 2f if one of the balances is interest bearing).

Plus Halifax keep doing the same

Do you have your T&Cs to hand? If not, they're on their website. If they don't cover 2 promotional rates you may have to contact them and ask. I'd suggest doing so in writing.

You are aware the 'rules' change in January (for everyone...although MBNA have gone early last month) regarding 'order of payments'? These will work in your favour should one of the balances be interest bearing.

Iand1

the prob i see is that if I pay off while both still 0% that they may no apply payment to the oldest.

Thanks.

YorkshireBoy

Iand1 wrote: »

the prob i see is that if I pay off while both still 0% that they may no apply payment to the oldest.

And you still think that after reading condition 2g (2nd bullet)?...which clearly states the one with the earliest start date is repaid first.

Or maybe you haven't access to your T&Cs at the moment? If so, they're on the Virgin website (just hit 'apply now' to see them).

Compingirl

Ive done this twice with Asda (Santander) and each time ive paid the original 0% off when it was due without incurring any charges. The first time I did it I was very clear with the woman on the phone and specifically asked if all payments I made would go towards the original 0% and not the new one. I prefer doing it this way 'cos I don't have to apply for a new card. cg

splatt30

I have 5 0% offers running on my virgin card currently.
Needless to say i spent ALOT of time ensuring I had understood their allocation of payments clearly before doing this, and sent several emails getting confirmation.
I can confirm that in this situation (where you have multiple 0% offers ending of different dates and no other balances), Virgin, will apply your payments to the 0% offer ending FIRST.
So yep, start using your new offer that runs til next October. Your minimum payments between now and December will go to the original balance, clear that balance by the December statement date and you will pay no interest.

In addition, Virgin have now changed their other T&Cs around allocation of payments. They now allocate payments to HIGHEST interest balances first (this is still quite unusual). So even if you don't clear all of the initial balance come December, your future payments will be allocated to that balance first (as it will then be SVR) leaving the balance on the new offer until next october interest free.