Balance transfer Fee, is it part of 0% deal?

Love2Spend1986

Hi,

This is probably one for someone who knows credit cards quite well

I've recently applied for a Virgin card and I have transferred £2000 onto the card. The 2.89% Transfer Fee has added an extra £57.30 onto the card.

What confuses me and I cant seem to find out from Virgin(I've searched terms and conditions booklet) is do I pay interest on this amount? or is the transfer fee part of my 0% deal? I'm trying to keep this card interest free so I'll have to just pay it if its not part of the deal.

YorkshireBoy

Love2Spend1986 wrote: »

(I've searched terms and conditions booklet)

You must have skipped the first sentence in condition 2d

We will charge interest on all transactions, handling fees, and on interest you already owe, at the interest rate which applies to the relevant transaction...

izools

Yes, but "at the interest rate that applies to the relevant transaction" doesn't specify whether the rate applicable to that transaction, is the standard rate, or 0% for xx months, does it?

YorkshireBoy

izools wrote: »

Yes, but "at the interest rate that applies to the relevant transaction" doesn't specify whether the rate applicable to that transaction, is the standard rate, or 0% for xx months, does it?

I'm not sure what your point is izools?

In the OP's case the "relevant transaction" is the £2K introductory 0% BT isn't it? Ergo, the interest on the fee is also 0%.

izools

It doesn't specify that verbatim. A rather loose term in that contract IMHO. I can understand the OP's confusion.

The issuer could argue the rate applicable to that transaction is the standard rate of xx.x% APR. The promotion applies to the balance transferred only. Or something.

Needs clarification.

twist-and-shout

The fee will be become part of the balance transfer as the two transactions come together.
So whatever interest rate you have done the balance transfer on that what interest rate you will pay on the fee.

Answering your question OP - No interest will accrue from the fee.

Jigga

There is no interest on the BT fee with Virgin, however the OP question is a legitimate one as I found out the hard way about a year ago that this isn’t the case with RBS: https://forums.moneysavingexpert.com/discussion/2399225

Paulgonnabedebtfree

I have had this haoppen either way with various cards. Most don't charge interest but I recall Lloyds TSB did on one occasion.
The good news is that it's not the issue these days that it once was. This is because even if Virgin are charging interest on this, the balance transfer fee will quickly be swallowed up by your repayments as the highest rate gets paid off first these days.