virgin cc interest payments

54druids

Got a virgin credit card which i use for my business and manage to pay off most months. Had a promotion last year that gave me interest free purchases until august this year on any purchases up to the 31st october 2011. I spent about 9k so i assumed that anything over and above that which i spend before august i must pay off in full to avoid interest. In april, I spent 12k but paid off over 5k but still got charged interest. I queried it with Virgin but am getting nowhere. Also the amount of purchases that qualified for the interest fee has now changed to 8.5k which i queried also but they just writing back telling me the terms of the promotion which clearly I know but not answering my questions. Can anyone shed any light?

CLAPTON

the usual rules for non promotional periods is that if you pay in full each and every month then you get charged no interest; often described as up to 56 days free credit.

now you have a promotion interest period which in fine

however if you now spend on the card and only pay off the amount of extra spending then you have NOT paid in full so you are NOT entitled to the normal interest free period.

so it is repeated recommended that one should not mix useage on a card with a 0% promotion .

54druids

thank you for your reply. I think I must be having a blonde day as I still dont get it. So if my statement says you have a balance of 12k and you have to pay it by the date they say then you have to pay the full 12k even if you have a 10 month interest free promo rate on 9k of that amount. If that is the case what is the point of the promotion. Many apologies if I am seeing this the wrong way. This is what Virgin said
"The promotional rate you are currently using for purchases amount £ 8396.15 will expire on the 6 August 2012, and revert to the standard rate of interest 12.9 % p.a. Your remaining purchase balance £5017.83 is on the standard rate of interest 12.9% p.a. To avoid interest you would need to pay £5017.83. " Now on my statement that month it shows me making payments of well over this so what am I not getting aarghhhh! As I said this amount changed from over 9k in purchase to the amount they said here (which is also puzzling me)

redpete

The interest-free amount would reduce as you pay some of it off.

You would pay some interest if you did not pay off in full the interest-bearing amount the previous month.

Without seeing the statement amounts for at least 2 consecutive months it is impossible to explain what happened - I would phone Virgin and ask them to explain until you understand.

CLAPTON

54druids wrote: »

thank you for your reply. I think I must be having a blonde day as I still dont get it. So if my statement says you have a balance of 12k and you have to pay it by the date they say then you have to pay the full 12k even if you have a 10 month interest free promo rate on 9k of that amount. If that is the case what is the point of the promotion. Many apologies if I am seeing this the wrong way. This is what Virgin said
"The promotional rate you are currently using for purchases amount £ 8396.15 will expire on the 6 August 2012, and revert to the standard rate of interest 12.9 % p.a. Your remaining purchase balance £5017.83 is on the standard rate of interest 12.9% p.a. To avoid interest you would need to pay £5017.83. " Now on my statement that month it shows me making payments of well over this so what am I not getting aarghhhh! As I said this amount changed from over 9k in purchase to the amount they said here (which is also puzzling me)

the solution is NOT to use a card with a current promotion for other purchases

nevertheless your are gaining some benefit

you are NOT paying interest on 8309 of your balance
you are only paying interest on 5017

any money you pay on the card will go to reducing the 5017
if you pay the 5017 plus the interest then on your next statement there will be only a little trailing interest



it's a lot better than paying interest on the entire balance