Newbie seeking confirmation - MT card

Hi All,

Just want to clarify my understanding on how money transfer credit card would work...

Virgin are offering 32 months at 0% but have a fee of 1.69%
am i correct in thinking that i could apply for the card and then transfer £10000 (for example) into my high interest savings/current account etc and make interest on this and then just pay off around £330 per month to clear the balance before the end of the 32 months?

am i missing a catch or something? seems easy money, put in account at 3% and in less than a year i will have covered the £169 fee and then its all profit.



  • Ebe_Scrooge
    Ebe_Scrooge Posts: 7,320
    Name Dropper First Anniversary Combo Breaker First Post
    Yep, this is how it works - you've factored in the fee, which is the only real "catch".

    As an aside, to make the very best use of it, don't pay £330 a month back to the card. Pay just the minimum + £1 every month ( to avoid a "minimum payment" marker appearing on your credit file - although there is an argument that it doesn't matter so much with promotional rates ). But anyway, pay the minimum each month, leave the rest in your account earning interest, then pay off the whole balance just before the promotional rate ends.

    Just be sure to pay the minimum every month - Direct Debit is the safest way. If you miss a payment you'll immediately switch to their standard APR.
  • Thanks for your quick reply, hadnt thought about paying minimum amount so thats something to consider, however now reading a bit more on the forums would it actually be better to pay the minimum amount each month and then transfer the balance to a 0% transfer card after 30 months? then keep paying minimum amount on that and keeping the cash amount earning interest?
  • Ebe_Scrooge
    Ebe_Scrooge Posts: 7,320
    Name Dropper First Anniversary Combo Breaker First Post
    Yes, transferring to another 0% card is what a lot of people do. The only things to bear in mind are :

    1. Your not guaranteed to be accepted for another card, so don't rely on that to clear your outstanding balance - always make sure you have a backup plan.
    2. There'll be another balance transfer fee to factor in - do the sums beforehand to see if you'll still earn enough interest to at least cover that ( especially if the interest rate on your savings should change ).
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