Balance Transfer Question

RG2015

Thanks eskbanker, this makes a bit more sense. Unfortunately the 0% on purchases only lasts 3 months so I will only have 95% of my credit limit at 0% interest for 24 months (less the minimum monthly payment).

I will have to accede to Ben's advice not to be greedy and make do with the 95%.

forgotmyname

They could allow 100% transfers but if you fail to make the payment on time it could push you over your limit and encounter even more charges.

RG2015

forgotmyname wrote: »

They could allow 100% transfers but if you fail to make the payment on time it could push you over your limit and encounter even more charges.

It is the responsibility of the user to comply with the basic credit limit and monthly payment conditions. If I choose to utilise 100% of my limit it in no way changes my responsibility to make my payment on time. I don't need the bank to add arbitrary restrictions to the credit limit that they have given me.

I acquired my first credit card over 39 years ago and it is only this year that I have gone for 0% cards. I am rapidly learning that all banks have quite different modi operandi.

RG2015

I registered my Virgin Money credit card today and was surprised to see that I wasn't given a balance transfer allowance of 95% of my credit limit but only 94% of the 95%.

Therefore I am only allowed to transfer a balance of up to 89.3% of my credit limit.

Whilst this is not a major issue it is somewhat confusing and I thought that others would be interested to know that Virgin Money operates in this unusual manner.

bigadaj

That's very odd, I could understand a 90% figure but why use a percentage of a percentage?

Might be worth querying with Virgin money to see if they have any sensible reason.

RG2015

bigadaj wrote: »

That's very odd, I could understand a 90% figure but why use a percentage of a percentage?

Might be worth querying with Virgin money to see if they have any sensible reason.

Thanks. I sent a secure message on Saturday 15th but as yet have not had a response. I also did a balance transfer for the amount allowed rounded down to the nearest £100 leaving a balance transfer allowance of a few pounds. The next day my allowance increased by £330. This really does not make any sense but my overall balance transfer allowance is now a lot closer to 95% of my full credit limit.

RG2015

I have finally received a response from Virgin Money which I am showing below.

We can confirm you are able to transfer up to 94% of the cash available on your account. Your available cash is 95% of your available purchase balance.

Each time I make a balance transfer the available purchase balance changes which I have demonstrated below for a credit limit of £10,000. The BT starts at £8,930 then increases to £9,410 and then to £9,494. Eventually it would reach £9,500. It does all seem a bit strange. Why not just give the £9,500 from the start?

Initial Position
Credit limit £10,000
Available cash (95%) £9,500
Available for BT (94%) £8,930

After an £8k BT
Available for BT (94% of £1.5k) £1,410

After a further BT of £1.4k
Available for BT (94% of £100) £94