virgin credit card minimum payment

tracey128

Hi folks. I have been checking over my credit card statments from virgin and some of the details are starting to confuse me. Over the last 4 months i have not added any more debt onto the card and have met the minimum payment req each month by direct debit and also added extra payments the last 2 months.

Now my new monthly statment is now stating the interest amount and the minimum payment has gone up from the last three months instead of down,(interest rate has not changed) by a few pounds. Any ideas how this can happen.

Many thanks.

jonesMUFCforever

What does the reverse of your statement say about minimum payments? (Or it might be on second page if you get one)

tyllwyd

Was there an introductory offer of some kind that has now run out?

B19JON

Do you buy lottery tickets on your credit card?
Do you have payment protection?

System

we have had a similar issue, we have been paying minimum payments but last month managed o pay doube the ayment the new statment has £300 less on the balance but the minimum payment this month is £16 more than last month !
there are no promo rates involved they ended some time ago.

chattychappy

I believe Virgin is issued by MBNA. With my MBNA card, the statement date moves around a bit, so some "months" are longer than others. I'm on a promo interest rate and sometimes the interest charge and min payment goes up, even though the balance has gone down.

So I'm guessing you might be seeing a higher interest amount because it relates to a "longer" month.

Layla_CK

Have they changed their T's and C's increasing the monthly payment %?

Typhoon2000

If you pay as soon as the statement is produced you get charged less interest on your next statement compared to if you left it to the last few days to pay. Direct debits normally come out close to the pay by day.

Shelldean

when we had this same issue with OH virgin card, they gave us the same explanation as chattychappy.

However when the new rules came in this stopped.
By new rules I mean when they changed to the interest charged plus a certain %. Did mean his minimum payment jumped up hugely, but it also meant we did actually start to see a reduction in the balance.

I thought this was how they was supposed to work nowadays?
Interest plus % of the balance??

chattychappy

Shelldean wrote: »

However when the new rules came in this stopped.
By new rules I mean when they changed to the interest charged plus a certain %.

For me, the min payment is interest + 1% of balance. Because some months are longer, I still find that sometimes the min payment and interest are higher than in the previous month.

But the balance always goes down now.

The rules require that the balance goes down over time. If the OP is finding that the balance is going up then something is going wrong.

Shelldean

chattychappy wrote: »

For me, the min payment is interest + 1% of balance. Because some months are longer, I still find that sometimes the min payment and interest are higher than in the previous month.

But the balance always goes down now.

The rules require that the balance goes down over time. If the OP is finding that the balance is going up then something is going wrong.

Yes I agree.