Virgin Money CC - money transfer/SBT

noh

16.8% isn't a low rate if you are actually going to be paying interest.

owitemisermusa

noh wrote: »

16.8% isn't a low rate if you are actually going to be paying interest.

I know it's best to avoid interest but from the POV of the often inevitable inability to pay off the full balance!

King_Weasel

sujman wrote: »

I did apply via the MSE link but the 1.5% fee did not apply to SBT, according to the guy I spoke to.

Shame as I got a good credit limit and I dont have enough CC balances to use it all up!

You need another card that will allow transfers to your bank without charge. I use Egg Money.

sujman

King_Weasel wrote: »

You need another card that will allow transfers to your bank without charge. I use Egg Money.

Thanks. But I've read in other posts that free SBT that Egg Money offer doesn't exist anymore for new customers?

I had a quick look on Eggs site to see if this scheme is still available but couldn't find anything.

If you know any different, do let me know.

Thanks again.

mrs_T

I am in the same position as sujman but have a santander zero cc which I took out in feb and which has no balance on it. I understand this cc does not charge for cash withdrawls so can I use it to withdraw cash up to daily limit and build up a debt to be transferred to virgin money cc at 1.5% fee and interest free for 16 months? My isa is full so it'll be going into a 3% savings account. Is it worth it?

http://www.santander.co.uk/csgs/Satellite?appID=abbey.internet.Abbeycom&c=Page&canal=CABBEYCOM&cid=1237866878766&empr=Abbeycom&leng=en_GB&pagename=Abbeycom%2FPage%2FWC_ACOM_TemplateW2

sujman

mrs_T wrote: »

I am in the same position as sujman but have a santander zero cc which I took out in feb and which has no balance on it. I understand this cc does not charge for cash withdrawls so can I use it to withdraw cash up to daily limit and build up a debt to be transferred to virgin money cc at 1.5% fee and interest free for 16 months? My isa is full so it'll be going into a 3% savings account. Is it worth it?

http://www.santander.co.uk/csgs/Satellite?appID=abbey.internet.Abbeycom&c=Page&canal=CABBEYCOM&cid=1237866878766&empr=Abbeycom&leng=en_GB&pagename=Abbeycom%2FPage%2FWC_ACOM_TemplateW2

Whilst is appears there are no charges to physically withdraw the cash, interest is chargeable and is payable straightaway. So even if you BT the balance in full at the end of the month, you will still incurr interest charges.

Is it worth it? Dont know. Depends on what you daily limit is, how long before you can clear the balance (i.e. BT straight away and not wait until the month end) and therefore what the net interest charges will be.

If all of that plus the 1.50% BT fee still make it attractive (i.e. by offseting against a say, 3.75% mortagage rate), then yes, it may well be worth it.

I would get absolutely clear on the value of the interest charges that get applied to you.

Maybe its even worth (if possible) to BT a value from your Santendar card BEFORE you withdraw cash from it. That way you are in credit (or it is debit!) and when you withdraw the cash, its not interest bearing?

I actuall already have a Santendar CC but got a deal with 0% on BT but also 0% charge for BT, so have already maxed it out.

YorkshireBoy

sujman wrote: »

Maybe its even worth (if possible) to BT a value from your Santendar card BEFORE you withdraw cash from it.

Doing so would breach the T&Cs, which expressly forbid it. If they block the card, and it takes a while to resolve (if indeed they do, rather than just bouncing the money back to MBNA), then you could actually lose money!

@ mrs T

For every day that a Santander cash withdrawal accrues interest at 27.9% APR, you'll need 12 interest earning days at 2.4% net of tax (more if you're a higher rate payer)...and that's before you factor in the 1.5% BT fee.

Plus there's the 'damage' to your credit file to consider - with all those cash advances being recorded.

sujman

YorkshireBoy wrote: »

Doing so would breach the T&Cs, which expressly forbid it. If they block the card, and it takes a while to resolve (if indeed they do, rather than just bouncing the money back to MBNA), then you could actually lose money!

Damn! And I thought I had hit apon an idea! Just did a search and found the Halifax Clarity Card that seems to do zero charge for cash withdrawals and was going to try this idea out.

Cat2011

I was planning on using the Halifax Clarity Card as well. Seems like a good idea to me. What's the loss of 12 days interest to offset the charges on the credit card balance whilst your're withdrawing, when you have a total of 16 months to earn interest?

sujman

Cat2011 wrote: »

I was planning on using the Halifax Clarity Card as well. Seems like a good idea to me. What's the loss of 12 days interest to offset the charges on the credit card balance whilst your're withdrawing, when you have a total of 16 months to earn interest?

I've been thinking the same thing actually. It took 5 days for a BT I set in motion with Virgin to take effect, so you could do the following:

Monday - Set in motion a BT transfering £1,000 from Virgin to Halifax.

Monday to Friday - Withdraw £200 per day from Halifax CC and bank into an interest saving account - or in your offset mortgage account.

By the time Friday comes, you wil have withdrawn £1,000 but also on Friday, money will have come in from Virgin, clearing the balance on the Halifax account.

By my rough calcs, the interest cost of doing this would be the sum total of £1.06. 1.50% balance transfer fee would cost £15, so total interest and fees charges of £16.06.

So now, that £1,000 should earn minimum 1.61% interest over the next 12 months, for the scheme to breakeven.

Should be doable? What do others think?