Balance Transfer Query

spikeypikey

Hi,

I have about 1900 on Virgin Credit Card - interest is 18.6 APR.
I have about 3800 on an Egg Card - interest is at 16.9 APR

I've been offered a 0% balance transfer on the Virgin Card - this will last until May 2012. I could transfer the 3800 from the Egg to the Virgin but as the rules have changed about repayments then I will continue to pay off the 1900 at 18.6 whilst the 3800 will sit there on 0% but not being paid off.

Is it worth doing this? I can't work out if it's better to just keep it at Egg at 16.9 or move it for the 0% interest. I may possibly pay off the 1900 in the year but I definitely won't get onto the 0% interest in that time.

Can anyone help because I just can't work out in my head if it would be worth doing this?

Regards.

Kate

YorkshireBoy

spikeypikey wrote: »

Can anyone help because I just can't work out in my head if it would be worth doing this?

If I understand your situation correctly you're asking if it's better to pay 16.9% interest or a one off (circa) 3% fee over the 12 month period.

Now, lets see...one will cost you around £114 for the year and the other will cost you around £600 for the year (allowing for minimum payments acting to reduce the Egg balance). Does that help?

However, what's your Egg credit limit? I'm not really up to speed on the Egg/Barclaycard situation for existing customers, but would Egg (now Barclaycard) let you BT the Virgin debt to them first...possibly even fee-free (it used to be outside a promotional rate period)? You could then shift the whole lot back to Virgin for 0%.

chopper78

Egg don't charge for standard balance transfers. So BT your £1900 from the Virgin to the Egg card, leaving you with £5700 on the Egg card. Then when all that has gone through (give it a week or so) BT the lot back to the Virgin card to take advantage of the 0% rate.

spikeypikey

Many thanks and sorry for appearing dense.... I was just concerned about BT ing and then the Egg money sitting on Virgin without a hope of getting paid off in the year as they now do the highest interest first.... as it is I applied for a Barclaycard 0% BT for 20 months and got accepted with a stupid credit limit so will now place all balances there and be very happy!